New Jersey Resources(US:NJR) ZACKS·2025-05-30 17:46Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks can be challenging due to inherent volatility and risks [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps identify promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - New Jersey Resources (NJR) is currently recommended due to its favorable Growth Score and top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for attracting investor attention, with double-digit growth being particularly desirable [3] - New Jersey Resources has a historical EPS growth rate of 9.6%, with projected growth of 9.9% this year, surpassing the industry average of 9.2% [4] Group 3: Cash Flow Growth - Higher-than-average cash flow growth is essential for growth-oriented companies, enabling them to expand without relying on external funding [5] - New Jersey Resources has a year-over-year cash flow growth of 10.3%, significantly higher than the industry average of 3.3% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 12.3%, compared to the industry average of 7.2% [6] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements [7] - The current-year earnings estimates for New Jersey Resources have increased by 2.4% over the past month [7] Group 5: Overall Positioning - New Jersey Resources has achieved a Growth Score of B and a Zacks Rank 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9]