Home Most Popular Investing Don’t Miss out on New Jersey Resources (NJR) – Here’s Why!

Don’t Miss out on New Jersey Resources (NJR) – Here’s Why!

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Don’t Miss out on New Jersey Resources (NJR) – Here’s Why!

New Jersey Resources NJR. Imagine NJR as a superhero, providing safe and reliable natural gas and clean energy services to the citizens of New Jersey. Their service is so dependable that customers can’t stop raving about them. This has led to significant customer growth over time. With a proven history of paying dividends and abundant growth opportunities, NJR deserves a spot in your utility stock portfolio.

So, let me tell you why this Zacks Rank #2 (Buy) stock could be the perfect addition to your investment portfolio at the moment.

Growth Projections & Surprise History

In the last 90 days, the Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) for NJR has jumped 1.5% to $2.77. Clearly, NJR is on the fast track to growth.

What’s more? The Zacks Consensus Estimate for the company’s fiscal 2024 sales indicates an impressive year-over-year improvement of 3.4%. That’s a massive leap!

If long-term vision is something you value, then NJR’s three to five years’ earnings growth rate of 6% should definitely pique your interest. Wait, there’s more! It unleashed an average earnings surprise of 118.6% in the last four quarters. Talk about exceeding expectations!

Return on Equity

Return on equity (ROE) is like a hotel for your investment funds. And when it comes to giving your funds a luxurious stay, NJR is a high-end hotel. With an ROE of 13.24%, it is making sure your money is living it up, much higher than the industry’s average of 10.41%. NJR knows how to treat your money right, unlike some others in the utility gas distribution industry.

Dividend Growth

In November 2023, the leaders at New Jersey Resources made their shareholders very happy by declaring a 7.7% increase in quarterly dividends, which is now set at 42 cents per share. Imagine the cheers from the shareholders! This move results in an annualized dividend of $1.68 per share, far better than before. And that current dividend yield? A nice and juicy 3.81%, miles away from the Zacks S&P 500 Composite’s 1.42%. 

Systematic Investments & Customer Growth

Picture NJR as an artist, constantly finetuning its masterpiece! The company consistently invests to upgrade and maintain its existing infrastructure. In fiscal 2023, NJR poured in a whopping $596 million for these artistic improvements. The company expects to spend within the range of $608-$743 million for fiscal 2024. That’s some serious dedication to improvement!

Moreover, NJR welcomed 8,800 new customers in fiscal 2023 compared with 7,808 in fiscal 2022, numbers that don’t lie. The company is looking at an annual customer growth rate of approximately 1.9%. These new customers represent approximately $8.5 million in new annual utility gross margin. Now that’s what growth looks like!

Price Performance

While others are out here struggling, NJR has managed to return 3.3% in the last three months, towering over the industry’s average 1.6% decline. Talk about a smooth sail in a stormy sea!

 

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Other Stocks to Consider

Oh, that’s not all! There are a few other top-ranked stocks from the same sector that deserve some spotlight as well. Take Southwest Gas Holdings Inc. SWX, for example. It’s proudly flaunting a Zacks Rank #1 (Strong Buy). Then we have Sempra Energy SRE and PPL Corporation PPL, both boasting a Zacks Rank #2 at present. These stocks definitely know how to make the headlines!

Each of these stocks has a fascinating story to tell. SWX entertains with a long-term earnings growth rate of 5% and a history of surprising with an average of 104% in the last four quarters. SRE, on the other hand, has a long-term earnings growth rate of 4.95% and a habit of giving a little surprise, showing an average of 9% in the last four quarters. Then we have PPL, with a long-term earnings growth rate of 7.42% and a consensus estimate for 2023 EPS showing an impressive year-over-year improvement of 12.1%. Now, aren’t these stocks the life of the party?

Zacks Names #1 Semiconductor Stock

If you love a little thrill, then you can’t miss this! Zacks recently unveiled the #1 semiconductor stock, which is just 1/9,000th the size of NVIDIA. But that’s not all! It has massive potential for growth and is ready to conquer the market. With the rise in demand for Artificial Intelligence, Machine Learning, and Internet of Things, this stock is here to take the world by storm. Get ready for an exhilarating journey as the global semiconductor manufacturing industry is projected to explode from $452 billion in 2021 to $803 billion by 2028.

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