Key Stats for WEC Energy Stock
- Past-30-Day Performance: 5%
- 52-Week Range: $101 to $118
- Valuation Model Target Price: $140
- Implied Upside: 22%
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What Happened?
WEC Energy Group stock rose about 5% in the last 30 days, finishing near $114 per share as investors reacted to stronger earnings results, accelerating data center demand, and expanded capital investment plans.
The stock moved higher after WEC reported 2025 adjusted EPS of $5.27, up $0.39 or 8% year over year, reaffirmed 2026 guidance of $5.51 to $5.61 per share, and increased its five-year capital plan to $37.5 billion.
Management added 500 megawatts tied to Microsoft, lifting projected electric demand growth to 3.9 gigawatts and supporting an additional $1 billion of investment.
CEO Scott Lauber said “all of these developments give us even more confidence in our 7% to 8% long-term EPS compound annual growth rate with acceleration to the upper half of the range starting in 2028.”
Institutional positioning reinforced the constructive tone. Envestnet Asset Management increased its stake to 3,046,591 shares worth about $349.1 million, PNC Financial Services raised its holdings to 2,589,930 shares valued at roughly $296.78 million, and Reaves W H & Co. initiated a new 236,000 share position worth about $27.04 million.
Institutional investors now own approximately 77.2% of the company, reflecting continued large-holder conviction.
WEC also raised its quarterly dividend 6.7% to $0.9525 per share, or $3.81 annualized, reinforcing its income profile.
Although CEO Scott Lauber sold 8,089 shares at $110.70, reducing his stake to 66,801 shares, the transaction was modest relative to overall ownership and did not materially shift investor sentiment.
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Is WEC Energy Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 5.7%
- Operating Margins: 30.7%
- Exit P/E Multiple: 20.1x
Revenue growth is supported by regulated rate base expansion tied to WEC’s $37.5 billion five-year capital plan, including grid modernization, natural gas generation, LNG storage, and renewable investments embedded within approved regulatory frameworks.
Data center development represents a structural growth driver. The additional 500 megawatts tied to Microsoft and total projected 3.9 gigawatts of demand across the five-year plan expand the rate base and improve long-term asset utilization, supporting predictable earnings growth beyond traditional utility load trends.
Margin durability reflects the regulated model, where constructive rate cases and cost recovery mechanisms allow WEC to earn authorized returns on invested capital.
As projects enter service between 2026 and 2030, operating leverage improves and supports management’s 7% to 8% long-term EPS growth target.
Over the next 12 months, performance will be driven by execution of capital projects, regulatory approvals in Wisconsin and Illinois, and continued data center buildouts that convert forecasted demand into in-service assets.
The dividend remains supported by stable operating cash flow, with a 3.33% yield and a 73.7% payout ratio aligned with long-term policy targets.
Based on these inputs, the model estimates a target price of $140, implying about 22% total upside and a 7.3% annualized return through 2026, indicating the stock appears undervalued at current prices.
Results over the next year hinge on capital deployment converting into rate base growth and continued regulatory support.
Data center expansion strengthens long-term earnings visibility.
Renewable and gas investments enhance the generation mix while supporting allowed returns.
Dividend growth remains backed by stable cash flows and disciplined financing.
At current levels, WEC appears undervalued, with performance driven by rate base execution and structural demand growth rather than multiple expansion.
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