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WEC Energy Group - AI Stock Analysis

Analysis generated September 20, 2024

WEC Energy Group, Inc. is a diversified energy company headquartered in Milwaukee, Wisconsin. It serves more than 4.4 million customers in Wisconsin, Illinois, Michigan, and Minnesota. The company provides electricity and natural gas services through its multiple subsidiaries, aiming for a balanced focus on delivering value to shareholders and a sustainable future.

Fundamental Analysis

Revenue for the last quarter was $1.77 billion. This represents a decrease of 33.89% compared to the quarter before it, indicating a need for concern. Furthermore, compared to the same quarter last year, there is a decrease of 3.17%, suggesting that revenue growth has stagnated.

Net income for the last quarter was $212 million, which is a 66.01% decrease compared to the quarter before. This sharp decline indicates potential underlying operational inefficiencies or other systemic issues. Compared to the same quarter last year, net income decreased by 27.03%, further emphasizing the downward trend.

EBITDA for the last quarter was $729 million, a decrease of 39.34% compared to the preceding quarter. This is another significant decline that raises eyebrows. Year-over-year, there is also a decrease of 12.26%, showing a downturn in operational profitability.

The current P/E ratio is 21.66. This appears to be within a normal range, neither particularly high nor low, which could be interpreted as the market having moderate confidence in the stock's future performance.

It's also worth noting that in the last couple of months, there have been several company insiders selling their stock. This can be a potentially bearish signal, as it may indicate that those closest to the company might foresee challenges ahead.

Technical Analysis

Today’s stock price is $94.72, showing a 4.58% increase compared to a month ago, indicating a short-term positive trend. Over the past year, there is a 14.19% increase, which suggests a positive long-term trend. Despite these increases, the trend appears bearish.

The current SMA10 is $95.34, slightly lower than the previous SMA10 of $95.42, hinting at a potential downward trend in price movement. However, the RSI is 22.8, indicating a potentially oversold bullish condition. This mixed signal makes the short-term outlook somewhat ambiguous.

Alternative Data Analysis

WEC Energy Group has 68 open positions, an increase of 66% in the last few months. This rise may signify a company looking to expand, which could be a positive indicator.

The business outlook among employees at WEC Energy Group is neutral, suggesting that internal sentiment is steady, neither particularly optimistic nor pessimistic.

The company’s website has garnered an estimated 1.5 million visitors, up by 6% in the last couple of months. This upward trend in web traffic could indicate growing customer interest or engagement.

On social media, WEC Energy Group has 710 followers on their Twitter page, with no meaningful increase or decrease in recent months. This neutrality mirrors the general sentiment within the company.

AltIndex’s AI score for WEC Energy Group is 35, which is a sell signal. This score combines fundamental, technical, and alternative data factors to predict future stock performance, and the low score suggests caution.

Conclusion and Recommendation

While WEC Energy Group exhibits signs of potential growth in terms of new job postings and increased website traffic, the fundamentals reveal cause for concern with significant declines in revenue, net income, and EBITDA. The technical indicators also give mixed signals, and the bearish trend accompanied by insider selling further tempers optimism.

The AltIndex AI score of 35, signaling a sell, reinforces the overall negative outlook. Therefore, based on the provided data, the recommendation would be to approach WEC Energy Group stock with caution, possibly considering a sell or hold position until further positive signs emerge.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.