3 Reasons Growth Investors Will Love New Jersey Resources (NJR)

Zacks Investment Research highlights New Jersey Resources (NJR) as a compelling growth stock, citing a Growth Score of B and a Zacks Rank #2 (Buy). NJR's projected EPS growth of 9.9% this year exceeds the industry average of 9.2%, while its cash flow growth stands at 10.3% versus an industry average of -0.1%; furthermore, current-year earnings estimates have risen 0.8% over the past month, suggesting positive near-term stock price movement.

Analysis

New Jersey Resources (NJR) has been identified by Zacks Investment Research as a noteworthy growth stock, meriting a Zacks Rank #2 (Buy) and a Growth Score of B. This positive assessment is underpinned by several key financial metrics. The company's projected earnings per share (EPS) growth for the current year stands at 9.9%, notably exceeding the industry average forecast of 9.2%. This forward-looking strength is complemented by a historical EPS growth rate of 9.6%. Furthermore, NJR demonstrates robust cash flow generation, with year-over-year cash flow growth reported at 10.3%, a stark contrast to the industry average decline of -0.1%. Over a 3-5 year period, NJR's annualized cash flow growth has been 12.3%, significantly outpacing the industry's 7.2%. Adding to the bullish case, current-year earnings estimates for NJR have seen upward revisions, with the Zacks Consensus Estimate increasing by 0.8% over the past month, a trend often correlated with positive near-term stock price movements. The combination of these strong growth attributes and positive estimate revisions positions NJR favorably according to the Zacks proprietary system.

Key Decisions for Investors

• Given New Jersey Resources' Zacks Rank #2 (Buy) and Growth Score of B, supported by projected EPS growth of 9.9% and cash flow growth of 10.3% which both significantly surpass industry averages, investors with a growth-oriented strategy should consider this stock.
• The 0.8% upward revision in the Zacks Consensus Estimate for current-year earnings over the past month provides an additional positive signal, suggesting potential near-term capital appreciation based on historical correlations.
• While NJR exhibits strong growth indicators, investors should remain cognizant of the inherently higher risk and volatility associated with growth stocks, as highlighted in the analysis, and evaluate NJR within their specific risk tolerance.