Here's Why You Should Add New Jersey Resources Stock to Your Portfolio

New Jersey Resources' NJR investments in infrastructure continue to benefit the company, enabling it to 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 1.6% in the past 30 days to $3.19.The Zacks Consensus Estimate for fiscal 2025 sales is pinned at $1.87 billion, indicating year-over-year growth of 4.1%.Debt Position of NJRCurrently, New Jersey Resources’ total debt-to-capital is 56.69%, which is better than the sector’s average of 59.9%.The time-to-interest earned ratio at the end of the fiscal second quarter was 5. 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 3.86%, better than the Zacks S&P 500 composite’s 1.52%.  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 16.95%, higher than the industry’s average of 9.27%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility gas distribution industry.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 and $650-$750 million in fiscal 2025 and 2026, respectively.During the fiscal six months of 2025, NJR added 3,945 new customers. It expects new customers and those who added additional natural gas services to their premises to contribute approximately $4.4 million of incremental utility gross margin on an annualized basis.NJR’s Stock Price PerformanceIn the past three months, shares of the company have risen 0.3% against the industry’s 2.8% decline. Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same industry are Southwest Gas SWX, sporting a Zacks Rank #1 (Strong Buy), and UGI Corporation UGI and Atmos Energy ATO, both holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.SWX’s long-term (three to five years) earnings growth rate is 9.5%. The Zacks Consensus Estimate for 2025 EPS indicates a year-over-year increase of 18.4%.UGI’s long-term earnings growth rate is 5.2%. The Zacks Consensus Estimate for UGI’s fiscal 2025 sales implies year-over-year growth of 8%.ATO’s long-term earnings growth rate is 7.19%. The company delivered an average earnings surprise of 2.6% in the last four quarters. 7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Atmos Energy Corporation (ATO): 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