Last week, WEC Energy (WEC) reported fourth-quarter EPS of $1.10, vs. $0.80 last year, which was $0.02 better than expected. For fiscal year 2024, results will exclude a $0.41 per share write off for assets that Illinois regulators declined to put in the company’s rate base. As a result of this ruling, WEC gave guidance for full-year EPS growth of 5% to 6%, which is below the company’s 8% to 9% long-term goal.

Due to these regulatory issues and persistently high short-term interest rates, WEC has unperformed. While I have been disappointed in the shares, the stock is too cheap to sell here at 15X this year’s EPS estimate. The stock also has a 4.3% dividend yield.

At some point this year, utilities should outperform as other sectors cool off, and WEC should do well. WEC is now a buy below $79. My new target is $86.