WEC Energy Hits 52-Week High On Q1 Beat, Customer Growth

The electric and natural gas utility WEC Energy Group (NYSE:WEC) hit a new 52-week high of $60.54 during yesterday’s trading session before closing a tad lower at $60.45. The stock has delivered a one-year return of about 29.8% while the S&P 500 declined 0.4% over the same time period.

Over the past 52 weeks, WEC Energy’s share price has ranged from a low of $44.93 to a high of $60.54. Average volume of shares traded over the last three months is approximately 1.94 million.

Why is WEC Energy Moving Up?

WEC Energy’s shares have been on the rise following its first-quarter 2016 results declared on May 3. The company posted first-quarter earnings of $1.09 per share, 6.86% above the Zacks Consensus Estimate. WEC Energy’s total revenue was $2,194.8 million, which beat the Zacks Consensus Estimate of $2,110 million by 4%.

WEC Energy has been a consistent performer having delivered positive earnings surprises in three out of the last four quarters, with an average beat of 4.38%. The long-term earnings growth of the company is presently pegged at 6.27%.

This utility has been investing steadily in its regulated businesses. The company aims to invest $1.55 billion and $1.9 billion in 2016 and 2017, respectively, which will give its earnings a boost of 5% to 7% per year in the aforesaid period. The company generates nearly 99% of its earnings from regulated operations, which lend a high degree of visibility to its earnings stream.

WEC Energy has begun to derive synergies from the Integrys Energy integration. This acquisition has been accretive to the utility’s overall performance, adding nearly $980 million to its top line in the first quarter.

The improvement in economic conditions in the company’s service territories has ensured a continuous uptick in the consumer base. Wisconsin utilities have recorded an increase of 8,000 electric and 11,000 natural gas customers year over year in first-quarter 2016, which will invariably lead to higher sales.

WEC Energy currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the utility space are Avangrid, Inc. (NYSE:AGR) , Spark Energy, Inc. (NASDAQ:SPKE) and Black Hills Corporation (NYSE:BKH) . Avangrid and Spark Energy sport a Zacks Rank #1 (Strong Buy), while Black Hills Corporation carries a Zacks Rank #2 (Buy).

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