Is This Energy Stock Headed for a Big Move?

This energy company is engaged in the generation and distribution of electricity in southeastern, east central and northern Wisconsin, as well as in the upper peninsula of Michigan. The company also distributes natural gas and owns, develops, and…

operates coal, oil, gas, and renewable fuel-based electricity generating facilities.

In the third quarter, the company’s earnings and revenues outperformed estimates. WEC has been adding electric and natural gas customers, driven by higher demand for its services. Plus, the firm targets a $17 billion plus investment between 2022-2026 to strengthen its infrastructure and add renewable assets to its portfolio.

WEC’s balance sheet does not look favorable as the company has $2 billion in short-term debt with only $26 million in cash. Earnings have grown an average of 7.4% per year over the past five years and are expected to fall 10.5% year over year in the current quarter.

The stock also looks slightly overvalued with a trailing P/E of 21.49 and a forward P/E of 20.53. WEC was showing bearish momentum in September, but performance has been mixed since, as shown in the chart below.

Take a look at the 1-year chart of WEC below with my added notations:

Chart of WEC provided by TradingView

WEC has formed key resistance at around…


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