Should You Invest in WEC Energy Group (WEC)?

Mairs & Power, an investment advisor, released the “Mairs & Power Balanced Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The stock market reached a record high in February. However, tariff uncertainty in March led to a fall in equities, while fixed income benefited from perceived safety. The fund ended the quarter up 0.04%. The fund outperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), down 1.48%, and the Morningstar Moderate Allocation peer group, which fell 0.34%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Mairs & Power Balanced Fund highlighted stocks such as WEC Energy Group, Inc. (NYSE:WEC). WEC Energy Group, Inc. (NYSE:WEC) is engaged in the provision of regulated natural gas and electricity, and renewable and nonregulated energy services. The one-month return of WEC Energy Group, Inc. (NYSE:WEC) was 5.17%, and its shares gained 29.27% of their value over the last 52 weeks. On May 6, 2025, WEC Energy Group, Inc. (NYSE:WEC) stock closed at $109.76 per share with a market capitalization of $35.028 billion.

Mairs & Power Balanced Fund stated the following regarding WEC Energy Group, Inc. (NYSE:WEC) in its Q1 2025 investor letter:

“During the quarter, the Fund started a new position in WEC Energy Group, Inc. (NYSE:WEC). WEC, a public utility headquartered in Wisconsin, operates in one of the most balanced regulatory environments for a utility and its stable service area led us to add the name early in the quarter. Additionally, the Fund is overweight equities, and WEC provides a quasi-fixed income holding in utilities, by which we mean the utility has a limited return profile within its regulatorily defined returns.”

A wind turbine in a large green field, highlighting the companies commitment to renewable energy.

WEC Energy Group, Inc. (NYSE:WEC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 28 hedge fund portfolios held WEC Energy Group, Inc. (NYSE:WEC) at the end of the fourth quarter, compared to 23 in the third quarter. While we acknowledge the potential of WEC Energy Group, Inc. (NYSE:WEC) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.