What Makes WEC Energy (WEC) an Investment Choice?

Mairs & Power, an investment advisor, released the third-quarter 2025 investor letter for the “Mairs & Power Balanced Fund.” A copy of the letter can be downloaded here. As we move into 2025, the market’s concentration persists, with a few dominant mega-cap stocks tied to artificial intelligence (AI) driving most of the favorable outcomes. The fund returned 6.47% in the first nine months of 2025. The fund underperformed the benchmark composite indexes (60% S&P 500 Total Return Index and 40% Bloomberg U.S. Government/Credit Bond Index), which were up 11.35% and the Morningstar Moderate Allocation peer group, which rose 10.73%. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-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 -7.23%, and its shares gained 8.14% of their value over the last 52 weeks. On December 10, 2025, WEC Energy Group, Inc. (NYSE:WEC) stock closed at $103.66 per share, with a market capitalization of $34.04 billion.

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

“Relative performance was also aided by a positive contribution from the Utilities sector. The Fund initiated a new position in WEC Energy Group, Inc. (NYSE:WEC) earlier this year for two reasons: First, WEC operates in a stable service area with one of the most balanced regulatory environments for a utility. Second, their Wisconsin service territory is seeing considerable investment in AI-related data centers which should provide a tailwind to rate base growth as well as long-term earnings growth.”

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 third quarter, which was 35 in the previous quarter. While we acknowledge the risk and potential of WEC Energy Group, Inc. (NYSE:WEC) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WEC Energy Group, Inc. (NYSE:WEC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered WEC Energy Group, Inc. (NYSE:WEC) and shared Mairs & Power Balanced Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.