What drives this stock to $50-$55 range. It is already trading at 18X 2013 earnings based on today's closing price.
2014 earnings estimate is only $2.55/share a rise of only 5%. Companies growing at 5% do not trade at these high rates over a sustained period of time and it will take years for the stock price to catch up to the price.
It is happening to all the Utilities, but I think we are approaching the limits of the PE expansion. Most of this huge run over the past few years has been based on PE expansion. In a market with government securities yielding reasonable rates this stock would not trade over $30 and that is stretching it a bit.
Those are very good points and I do not refute your assessment. Since WEC is currently in a $300 million stock buy-back program, I would think this is creating some of the positive price movement as well.