Reasons to Add New Jersey Resources Stock to Your Portfolio Now

New Jersey Resources’ NJR strategic investment plans in infrastructure help it serve its expanding customer base more efficiently. Given its earnings growth opportunities and strong return on equity (ROE), NJR makes for a solid investment option in the utility sector.Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.NJR’s Growth ProjectionsThe Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has moved up 6.4% in the past 90 days to $3.15.The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $1.84 billion, indicating year-over-year growth of 2.5%.NJR’s Return on EquityROE indicates how efficiently a company has been utilizing the funds to generate higher returns. Currently, New Jersey Resources’ ROE is 15.72%, higher than the industry’s average of 9.25%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility gas distribution industry.NJR’s SolvencyThe time-to-interest earned ratio at the end of the fiscal first quarter was 4.2. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.NJR’s Dividend GrowthNew Jersey Resources has been increasing shareholders' value by paying dividends. The company has paid quarterly dividends continuously since its inception in 1952. It has also raised the dividend every year for the past 29 years. Currently, the company’s quarterly dividend is 45 cents per share, resulting in an annualized dividend of $1.80 per share compared with the previous figure of $1.68. The company’s current dividend yield is 3.8%, better than the Zacks S&P 500 composite’s 1.24%.  NJR’s Systematic Investments & Customer GrowthNew Jersey Resources consistently invests in upgrading and maintaining its existing infrastructure, with the goal of providing reliable services to its customers around the clock. The company expects capital expenditures to be in the range of $600-$700 million for fiscal 2025.During the fiscal first quarter of 2025, NJR added 1,914 new customers. It expects new customers and those who added additional natural gas services to their premises to contribute approximately $2 million of incremental utility gross margin on an annualized basis.NJR’s Stock Price PerformanceIn the past six months, shares of the company have risen 2.5% against the industry’s 1% decline. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are UGI Corporation UGI, Southwest Gas SWX and Chesapeake Utilities CPK, each holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.UGI’s long-term (three to five years) earnings growth rate is 4.8%. The Zacks Consensus Estimate for UGI’s fiscal 2025 sales implies year-over-year growth of 8.4%.SWX’s long-term earnings growth rate is 6.61%. The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 16.8%.The Zacks Consensus Estimate for CPK’s fiscal 2025 EPS indicates year-over-year growth of 16.1%. The company delivered an average earnings surprise of 2.4% in the last four quarters. Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southwest Gas Corporation (SWX): Free Stock Analysis Report Chesapeake Utilities Corporation (CPK): Free Stock Analysis Report UGI Corporation (UGI): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks