WEC Energy Group (WEC): Harnessing Growth from Industrial and Technological Developments in Wisconsin

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Russell Midcap Index posted negative returns. Significant policy uncertainty, signaled by aggressive tariff announcements, reversed the positive sentiment prevailing in the domestic market at the start of the year, turning it negative. The first-quarter macroeconomic environment showed signs of slowdown but not recession. The economy seems okay, but downside risks are rising. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Carillon Scout Mid Cap 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 -1.92%, and its shares gained 34.70% of their value over the last 52 weeks. On June 23, 2025, WEC Energy Group, Inc. (NYSE:WEC) stock closed at $105.50 per share, with a market capitalization of $33.67 billion.

Carillon Scout Mid Cap Fund stated the following regarding WEC Energy Group, Inc. (NYSE:WEC) in its Q1 2025 investor letter:

“WEC Energy Group, Inc. (NYSE:WEC), a regulated utility, is seeing outsized growth in its Wisconsin electric utility from both local industrial development and very large technological development from one of the mega-cap software giants. There had been some doubts around this growth materializing, but as those fears subsided, it provided a tailwind for the stock.”

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, 37 hedge fund portfolios held WEC Energy Group, Inc. (NYSE:WEC) at the end of the first quarter, which was 28 in the previous 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 undervalued AI stock set for massive gains.

In another article, we covered WEC Energy Group, Inc. (NYSE:WEC) and shared Mairs & Power Balanced Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of WEC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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