WEC Energy Soars on Bullish Forecast: Time to Buy This Utility Giant?

The stock market is a game of momentum, and right now, WEC Energy Group (WEC) is playing with fire—in the best way possible. Analysts at Scotiabank just cranked their price target to $115, a 4.6% jump from the previous $110, and they’re not just whistling in the dark. This utility giant is delivering the goods, and investors should take notice. Let’s break down why this stock could be a “Mad Money” favorite in 2025—and whether it’s worth buying now.

The Bull Case: Dividends, Growth, and Green Energy

WEC’s Q1 2025 earnings report was a home run, with EPS of $2.27—crushing estimates of $2.18—and revenue hitting $3.15 billion, a 9.6% surge from the same period in . The company reaffirmed its full-year 2025 guidance of $5.17–$5.27 EPS, signaling confidence in its ability to navigate even the stickiest macroeconomic conditions. But the real kicker? Dividends.

WEC has hiked its dividend for 55 straight years, a streak that’s almost as rare as a Cramer-approved “buy and hold” stock. With a 3.25% yield and 6.89% dividend growth over the past year, this is a stock that pays you to wait. And wait you might have to—because while the price target is $115, the stock is currently trading at $107.57, leaving $7.43 on the table for patient investors.

But what’s driving the optimism? Growth catalysts. WEC is pouring $700–$800 million into renewable projects like the Darien Solar and Koshkonen/Renegade initiatives. These aren’t just “greenwashing” projects—they’re regulated assets that come with guaranteed returns. Throw in exposure to data center demand, a sector that’s still growing despite whispers of a slowdown, and you’ve got a recipe for steady earnings.

The Risks: Don’t Get Burned by the Tariffs

No stock is without risks, and WEC isn’t exempt. Analysts at Scotiabank flagged tariffs and supply chain costs, which could eat into the $28 billion five-year capital plan. Operating expenses are also expected to rise 8–10% in 2025, mainly due to maintenance and new infrastructure.

Then there’s the valuation debate. WEC trades at a 21.15x P/E ratio, well above its historical average. While Scotiabank argues this premium is justified by its growth, GuruFocus estimates a “fair value” of $95.73—a 12.22% discount to current levels. That’s a red flag for skeptics.

Technicals: A Stock on the Cusp of a Breakout

The charts are sending mixed signals. Short-term indicators like the 3-day and 5-day moving averages are pointing down, suggesting a dip to $100.28 by June. But the 50-day SMA ($107.17) and 200-day SMA ($98.71) are bullish, implying a base for a rebound.

The Fear & Greed Index is at 39 (Fear), and sentiment is 54% bullish vs. 46% bearish—a near-even split. This is a stock where timing matters. If you’re a trader, wait for the dip. If you’re an investor, this is a buy the pullback scenario.

The Bottom Line: Buy on Weakness, but Watch the Tariffs

WEC Energy is a utility powerhouse with a 55-year dividend streak, regulatory tailwinds, and projects that lock in growth. The $115 price target isn’t just a number—it’s a reflection of WEC’s resilience in tough markets.

But here’s the catch: Don’t chase the stock here. At $107.57, it’s already up 17.7% year-to-date and near its 52-week high of $111. Let the bears take it down to $100–$102, then pile in.

The 3.25% yield and 6.89% dividend growth mean you’ll get paid while waiting for the stock to hit $115. Just keep an eye on those tariffs and O&M costs—if those risks materialize, the downside could hurt.

Final Take: WEC is a buy on dips, not at today’s prices. If it hits $100, jump in. If it hits $115, don’t panic—this utility’s growth story isn’t fading anytime soon.

Action Alert: WEC Energy (WEC) is a “hold” for now. Wait for a correction to $100+, then buy. The $115 target is a realistic stretch run for this dividend dyna-mo.

Data as of May 10, 2025. Past performance ≠ future results. Always consult your financial advisor.