Reasons to Include New Jersey Resources Stock in Your Portfolio Now

New Jersey Resources' NJR infrastructure investments continue to drive benefits for the company, allowing it to serve its growing customer base with greater efficiency. Given its strong growth, NJR makes for a solid investment option in the Zacks Utility Gas Distribution industry.Let us focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.NJR’s Growth Outlook & Surprise HistoryThe Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased 1.9% to $3.28 in the past 60 days.The Zacks Consensus Estimate for fiscal 2025 sales is pegged at $1.98 billion, implying a year-over-year increase of 10%.NJR surpassed expectations in the last four reported quarters and delivered an average earnings surprise of 54.96%.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 17.08%, higher than the industry’s average of 9.08%. This indicates that the company has been utilizing the funds more constructively than its peers in the utility gas distribution industry.NJR’s Strategic Spending & Service ReachNew Jersey Resources regularly invests in enhancing and maintaining its infrastructure, aiming to deliver reliable services to its customers. The company aims capital expenditures to be in the range of $650-$770 million and $655-$835 million in fiscal 2025 and 2026, respectively.As of June 30, 2025, New Jersey Natural Gas supplied services to about 588,300 customers across Monmouth, Ocean, Morris, Middlesex, Sussex and Burlington counties in New Jersey, up from roughly 583,000 customers as of Sept. 30, 2024.NJR’s Return to ShareholdersNew Jersey Resources has been increasing shareholder value via regular dividend payments. The company has paid quarterly dividends continuously since its inception in 1952. It has also raised the dividend every year for the past 30 years.On Sept. 10, 2025, the company’s board of directors authorized a quarterly dividend increase to 47.5 cents per share from 45 cents, marking a 5.6% hike and bringing the annualized dividend to $1.90. The company’s current dividend yield stands at 4.03%, significantly higher than the Zacks S&P 500 Composite’s 1.12%.Overview of NJR’s Debt StructureCurrently, NJR’s total debt to capital is 58.26%, better than the sector’s average of 59.64%.The time-to-interest earned ratio at the end of the fiscal third quarter of 2025 was 5. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.NJR Stock Price PerformanceIn the past month, NJR shares have risen 2.1% compared with the sector’s growth of 0.1%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderA few other top-ranked stocks from the same sector are ONE Gas, Inc. OGS, Northwest Natural Holding Company NWN and NiSource Inc. NI, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. OGS’ long-term (three to five years) earnings growth rate is 5.6%. The Zacks Consensus Estimate for 2025 EPS is pegged at $4.34, which calls for a year-over-year improvement of 11%.NWN delivered an average earnings surprise of 33.20% in the past four quarters. The Zacks Consensus Estimate for 2025 EPS stands at $2.92, which suggests a year-over-year rise of 25.3%.NI’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for its 2025 EPS is pegged at $1.88, which implies year-over-year growth of 7.4%.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks 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 NiSource, Inc (NI): Free Stock Analysis Report Northwest Natural Gas Company (NWN): Free Stock Analysis Report NewJersey Resources Corporation (NJR): Free Stock Analysis Report ONE Gas, Inc. (OGS): 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