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 potential of WEC Energy Group, Inc. (NYSE: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 thebest short-term AI stock.
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