Group 1: Renewable Energy Stocks Overview - Quanta Services, WEC Energy Group, and Clearway Energy are highlighted as key renewable energy stocks to monitor, based on their high trading volume recently [2] - Renewable energy stocks represent companies focused on producing energy from renewable sources or providing related equipment and services, appealing to investors seeking exposure to the shift from fossil fuels [2] Group 2: Quanta Services (PWR) - Quanta Services, Inc. offers infrastructure solutions across various sectors including electric and gas utilities, renewable energy, and communications, operating in the U.S., Canada, Australia, and internationally [3] - The company’s Electric Power Infrastructure Solutions segment is involved in the design, construction, and maintenance of electric power transmission and distribution infrastructure, including smart grid technologies [3] Group 3: WEC Energy Group (WEC) - WEC Energy Group, Inc. provides regulated natural gas and electricity services, along with renewable energy services through its subsidiaries, operating in multiple states including Wisconsin and Illinois [4] Group 4: Clearway Energy (CWEN) - Clearway Energy, Inc. operates in the renewable energy sector in the U.S., with approximately 6,000 net MW of installed wind, solar, and energy generation projects, and around 2,500 net MW of natural gas-fired generation facilities [4]

Core Viewpoint - WEC Energy Group, Inc. is expected to report a decline in earnings per share (EPS) for Q4 fiscal 2025, while showing overall growth in EPS for the current year and the following year [2][3]. Financial Performance - WEC Energy is anticipated to generate earnings of $1.37 per share for Q4 fiscal 2025, a decrease of 4.2% from $1.43 per share in the same quarter last year [2]. - For the current fiscal year, analysts forecast an EPS of $5.24, reflecting a 7.4% increase from $4.88 in fiscal 2024 [3]. - EPS is expected to grow by 6.9% year over year to $5.60 in fiscal 2026 [3]. - The company reported Q3 revenue of $2.1 billion, exceeding Street estimates, and an EPS of $0.83, which also topped Wall Street expectations [5]. Stock Performance - WEC shares have increased by 12.4% over the past 52 weeks, underperforming the S&P 500 Index's 16.2% rise but outperforming the State Street Utilities Select Sector SPDR ETF's 10.8% return [4]. - Following the release of Q3 earnings results, WEC shares dipped more than 1% [5]. Analyst Ratings - The consensus view on WEC is moderately bullish, with a "Moderate Buy" rating overall. Among 18 analysts, seven suggest a "Strong Buy," 10 recommend a "Hold," and one analyst gives a "Strong Sell" [6]. - The mean price target for WEC is $121.72, indicating a potential upside of 15.5% from current price levels [6].

Financial Performance - The company has a market cap of $34.3 billion and serves 4.7 million retail customers, with total assets amounting to $49.8 billion[3]. - The 2025 adjusted earnings per share (EPS) guidance is projected to be between $5.17 and $5.27, with a long-term EPS growth outlook of 6.7% CAGR[4][6]. - The company reported a strong earnings growth with a projected long-term EPS growth of 7.0% to 8.0%[27]. - Adjusted EPS for 2023 is projected at $4.63, with guidance for 2024 between $4.88 and $5.17[49]. - The company expects a GAAP EPS of $4.22 for 2023, reflecting an increase from $3.79 in 2017[49]. - The adjusted EPS for 2025 is projected at $4.83 to $4.93, indicating a steady growth trajectory[49]. Dividend and Shareholder Returns - The board plans to increase the quarterly dividend to 95.25 cents per share for Q1 2026, resulting in an annual rate of $3.81 per share, marking the 23rd consecutive year of dividend growth[7]. Capital Investment and Expenditures - A significant investment of over $7 billion is planned for the Microsoft Data Center project, expected to create 2,300 construction jobs and 2,000 permanent jobs[12]. - The capital plan for 2026-2030 includes $8.5 billion in additional investments, with $3.4 billion allocated to natural gas generation and $2.5 billion to regulated renewables[15]. - The projected capital expenditures from 2026 to 2030 total $36.5 billion, supporting long-term EPS growth of 7.0% to 8.0%[17]. - The company plans to invest approximately $5.7 billion in capital projects in 2026, with projections increasing to $7.8 billion by 2028[38]. Energy Transition and Sustainability - The company aims to eliminate coal as an energy source by the end of 2032, having already retired nearly 2,500 MW of fossil fuel generation since 2018[25]. - The company is maintaining its long-term goal of achieving net carbon neutral electric generation by 2050, despite reconsidering near-term goals due to tightened energy supply requirements[26]. - The company is involved in clean energy pilot projects, including a long-duration energy storage battery project that utilizes environmentally friendly materials[35]. - The company has several solar projects with anticipated capacities, including Koshkonong Solar Park (270 MW, $621M investment) and High Noon Solar Park (270 MW, $576M investment), expected to be operational by 2026 and 2027 respectively[30]. - Battery projects include Darien Battery Park (68 MW, $140M investment) and Koshkonong Battery Park (149 MW, $309M investment), with expected service dates in 2026 and 2027[31]. Regulatory and Compliance - The issuer credit ratings for WEC Energy Group are A- from S&P and Baa1 from Moody's, with a target FFO to debt ratio of over 15%[24]. - The company is focused on regulatory compliance and has mechanisms for capital cost recovery in place[48]. - Earnings sharing mechanisms are in place for Wisconsin utilities, with specific thresholds for sharing above allowed ROE[48]. - The company has a bad debt rider and fuel cost recovery mechanisms in place across various states[48]. Customer and Community Engagement - The company has a balanced sales mix, with 33% from large commercial and industrial customers and 31% from residential and farm customers[44]. - The company contributed over $20 million to nonprofit organizations in 2024, demonstrating a commitment to community support[33]. Operational Metrics - The average asset base for 2024 is projected to be $30.8 billion, with Wisconsin Electric representing 29.2% of the total[39]. - The equity layer for Wisconsin Electric is 57%, with a ROE range of 10.48%-10.98%[47]. - Authorized ROE for Wisconsin Electric, Wisconsin Public Service, and Wisconsin Gas is set at 9.80% within a range of 50.50%-55.50%[47]. - The company has outlined a 50/50 sharing on the next 60 basis points above the allowed ROE for WPS and WG utilities[48]. - The impact of additional shares from the Integrys acquisition reduced EPS by $0.47[49].

Core Viewpoint - WEC Energy Group, Inc. is recognized as one of the best-performing electrical infrastructure stocks in 2025, despite recent price target reductions by analysts [1]. Group 1: Analyst Ratings and Price Targets - Barclays has lowered its price target for WEC Energy Group from $110 to $105 while maintaining an Equal Weight rating [2]. - KeyBanc also reduced its price target from $123 to $117, keeping an Overweight rating [2][3]. Group 2: Company Performance and Management - The management team of WEC Energy Group has a history of executing plans effectively, achieving outcomes close to the top of its guidance range [3]. - Wisconsin's regulatory environment is viewed as historically beneficial for the company, contributing to its promising future [3]. Group 3: Dividend Announcement - The board of WEC Energy Group declared a dividend increase to $0.9525 per share for the first quarter of 2026, representing a 6.7% annual increase to $3.81 per share [4]. - The dividend is expected to be declared in January 2026 and paid to shareholders on March 1, 2026 [4]. Group 4: Operational Scope - WEC Energy Group provides electric and gas utility services in Illinois, Michigan, Minnesota, and Wisconsin [5].

Core Viewpoint - WEC Energy Group is positioned for potential growth with a price target of $115 set by UBS, indicating a possible increase of approximately 10.07% from its current price of $104.48 [1][5] Company Performance - WEC's stock price has experienced a slight decrease of 0.74%, currently trading between $104.23 and $105.66 [2][5] - Over the past year, WEC's stock has fluctuated, reaching a high of $118.19 and a low of $91.94 [2] - The company's market capitalization stands at approximately $33.41 billion, reflecting its significant market presence [2] Comparative Analysis - PG&E, another major player in the Utility - Electric Power sector, holds a Zacks Rank of 2 (Buy), indicating a stronger earnings estimate revision trend compared to WEC's Zacks Rank of 3 (Hold) [3][5] - This suggests that PG&E may have a more favorable earnings outlook, potentially making it more attractive to value investors [3] Investor Interest - Today's trading volume for WEC is 1,267,658 shares on the NYSE, indicating active investor interest [4] - The key question for investors is which stock offers better value, with UBS's price target for WEC suggesting potential growth while PG&E's stronger earnings outlook may appeal more to value-seeking investors [4]

Core Viewpoint - The comparison between PG&E (PCG) and WEC Energy Group (WEC) indicates that PG&E currently offers better value for investors based on its stronger earnings outlook and more attractive valuation metrics [1][3][7]. Valuation Metrics - PG&E has a forward P/E ratio of 10.24, significantly lower than WEC's forward P/E of 20.11, suggesting that PG&E is undervalued relative to WEC [5]. - The PEG ratio for PG&E is 0.64, while WEC's PEG ratio stands at 2.66, indicating that PG&E's expected earnings growth is more favorable compared to its price [5]. - PG&E's P/B ratio is 1.1, compared to WEC's P/B of 2.45, further supporting the notion that PG&E is undervalued [6]. Earnings Estimate Revisions - PG&E holds a Zacks Rank of 2 (Buy), reflecting positive earnings estimate revisions, while WEC has a Zacks Rank of 3 (Hold), indicating a less favorable earnings outlook [3][7]. - The stronger estimate revision activity for PG&E suggests that its earnings outlook is improving more significantly than that of WEC [7].

Core Insights - The Mairs & Power Balanced Fund reported a return of 6.47% in the first nine months of 2025, underperforming benchmark indexes which increased by 11.35% and 10.73% respectively [1] - The market remains concentrated with a few mega-cap stocks related to artificial intelligence driving most favorable outcomes [1] Company Overview - WEC Energy Group, Inc. (NYSE:WEC) provides regulated natural gas and electricity, as well as renewable and nonregulated energy services [2] - As of December 10, 2025, WEC Energy Group's stock closed at $103.66 per share, with a market capitalization of $34.04 billion [2] Investment Positioning - The fund initiated a new position in WEC Energy Group due to its stable service area and balanced regulatory environment, along with significant investments in AI-related data centers in Wisconsin [3] - The Utilities sector positively contributed to the fund's relative performance [3] Hedge Fund Interest - WEC Energy Group was held by 37 hedge fund portfolios at the end of the third quarter, an increase from 35 in the previous quarter [4] - Despite recognizing WEC's potential, the company believes certain AI stocks present greater upside potential and lower downside risk [4]

Core Insights - The utilities sector is experiencing a trend of oversold stocks, presenting potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Southern Co (NYSE:SO) has an RSI value of 25.8, with shares closing at $85.49, down approximately 4% over the past five days and reaching a 52-week low of $80.46 [6] - Duke Energy Corp (NYSE:DUK) has an RSI value of 25.6, with shares closing at $115.24, having fallen around 6% over the past month and hitting a 52-week low of $105.20 [6] - WEC Energy Group Inc (NYSE:WEC) has an RSI value of 24.9, with shares closing at $104.64, down about 7% over the past month and reaching a 52-week low of $91.94 [6] Group 2: Company Actions and Proposals - Duke Energy proposed new investments in North Carolina aimed at enhancing reliability and supporting economic growth, emphasizing the importance of balancing investments with cost-saving measures for customers [6] - WEC Energy Group increased its quarterly dividend from $0.8925 to $0.9525 per share, indicating a commitment to returning value to shareholders despite recent stock price declines [6]

Core Viewpoint - WEC Energy Group, Inc. is a significant player in the regulated utilities sector, with a strong market presence and growth prospects despite recent stock performance challenges [1][2][3][4][5] Company Overview - WEC Energy Group, Inc. is headquartered in Milwaukee, Wisconsin, and provides regulated natural gas and electricity, along with renewable energy services, with a market cap of $34.1 billion [1] - The company operates an extensive infrastructure, including 35,500 miles of overhead and 36,500 miles of underground distribution lines, along with significant gas mains and storage capacity [1][2] Financial Performance - In Q3, WEC reported an EPS of $0.83, exceeding Wall Street's expectation of $0.79, and revenue of $2.1 billion, surpassing the forecast of $2 billion [5] - The company anticipates a full-year EPS in the range of $5.17 to $5.27 [5] Stock Performance - WEC's stock has experienced a decline of 11.4% from its 52-week high of $118.19, reached on October 22 [3] - Over the past three months, WEC stock fell by 2.4%, underperforming the Utilities Select Sector SPDR Fund's (XLU) gains of 3.4% [3] - On a six-month basis, WEC shares fell marginally, underperforming XLU's six-month gains of 5.2%, but rose 7.9% over the past 52 weeks, outperforming XLU's 7.2% returns [4] Growth Prospects - The stock is rising on growth prospects driven by increasing energy demand, data center development, and infrastructure modernization [5] - The company's strong balance sheet supports investments in infrastructure and innovation, including smart grid technology and renewable energy [2]

Core Insights - WEC Energy Group has approved a 6.7% increase in its quarterly dividend rate, raising it to 95.25 cents, effective in the first quarter of 2026, aligning with its long-term goal of a 7-8% annual growth in dividends over the next five years [1][7] - The company's new annualized dividend rate is $3.81, with a current dividend yield of 3.58%, significantly higher than the S&P 500 Composite's yield of 1.08% [1][5] Company Performance and Strategy - WEC Energy is expected to benefit from improving demand from both commercial and industrial (C&I) customers and the residential sector, supported by ongoing economic improvements in its service areas [2] - The company plans to invest $36.5 billion in cost-effective, zero-carbon generation sources such as solar and wind from 2026 to 2030, aimed at enhancing its infrastructure to meet rising demand [3][7] - Positive developments and contributions from organic assets will provide WEC Energy with the financial flexibility to increase dividend rates [4] Industry Context - Domestic-focused, rate-regulated electric power utilities, including WEC Energy, are stable performers that reward shareholders through dividend hikes and share buybacks, with peers like NextEra Energy, Fortis Inc., and Clearway Energy also raising their dividend rates [5] - Over the past year, WEC Energy's shares have increased by 9.5%, although this growth lags behind the industry's overall growth of 18.6% [6]