WEC Energy (WEC) yesterday reported third quarter EPS of $1.00 vs. $0.96, which was $0.10 above expectations, although revenues declined 2%, which was a little worse than expected.

The company-maintained EPS guidance is $4.58 to $4.62 a share for this year. Longer-term, the company updated its new 5-year plan, which calls for a 16% greater growth in assets than the previous plan, due in part to business expansion in Wisconsin’s I-84 corridor.  This could potentially add to the company’s targeted 5% to 7% EPS growth.

The stock reacted negatively to earnings, which may reflect concerns about the additional capital needed with the larger than expected expansion plan. In addition, the stock had a nice run off its lows and was due for a little pullback.

Interest rates appear to be moderating, and the economy may be slowing. Both factors could give the stock a lift.

My new buy under price for WEC is $88, as I now target $96. The 3.83% dividend yield should add to total returns.