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

Core Viewpoint - New Jersey Resources (NJR) is positioned as a strong investment option in the utility sector due to its infrastructure investments, earnings growth opportunities, and strong return on equity (ROE) [1] NJR's Growth Projections - The Zacks Consensus Estimate for fiscal 2025 earnings per share (EPS) has increased by 1.6% to $3.19 [2] - The Zacks Consensus Estimate for fiscal 2025 sales is projected at $1.87 billion, reflecting a year-over-year growth of 4.1% [2] Debt Position of NJR - NJR's total debt-to-capital ratio stands at 56.69%, which is better than the sector average of 59.9% [3] - The time-to-interest earned ratio is 5, indicating the company's strong ability to meet future interest obligations [3] NJR's Dividend Growth - NJR has consistently paid quarterly dividends since 1952 and has raised its dividend for 29 consecutive years [4] - The current quarterly dividend is 45 cents per share, leading to an annualized dividend of $1.80, up from $1.68 [4] - The current dividend yield is 3.86%, significantly higher than the Zacks S&P 500 composite's yield of 1.52% [4] NJR's Return on Equity - NJR's ROE is currently at 16.95%, surpassing the industry average of 9.27%, indicating effective utilization of funds [5] NJR's Systematic Investments & Customer Growth - NJR is focused on upgrading and maintaining its infrastructure, with planned capital expenditures of $600-$700 million for fiscal 2025 and $650-$750 million for fiscal 2026 [6] - In the first half of fiscal 2025, NJR added 3,945 new customers, which is expected to contribute approximately $4.4 million in incremental utility gross margin annually [7] NJR's Stock Price Performance - Over the past three months, NJR's shares have increased by 0.3%, contrasting with a 2.8% decline in the industry [8] Other Stocks to Consider - Other top-ranked stocks in the industry include Southwest Gas (SWX) with a Zacks Rank 1, and UGI Corporation (UGI) and Atmos Energy (ATO), both holding a Zacks Rank 2 [9] - SWX has a long-term earnings growth rate of 9.5% and a Zacks Consensus Estimate for 2025 EPS indicating an 18.4% year-over-year increase [9] - UGI's long-term earnings growth rate is 5.2%, with a fiscal 2025 sales estimate implying 8% year-over-year growth [10] - ATO has a long-term earnings growth rate of 7.19% and an average earnings surprise of 2.6% over the last four quarters [10]