Time: 2024-06-19
New Jersey Resources Corporation (NYSE:NJR) has been benefiting from its infrastructure upgrades, which have helped in efficiently serving its growing customer base. With promising earnings growth opportunities and a solid return on equity (ROE) of 12.16%, NJR stands out as a strong investment choice in the utility sector.
Analysts have raised their growth projections for NJR, with the Zacks Consensus Estimate for fiscal 2024 earnings per share now at $2.94. Additionally, the company has a history of delivering impressive earnings surprises, with an average surprise of 107.4% in the last four quarters. NJR has also been rewarding shareholders with consistent dividend increases, currently offering a dividend yield of 3.99%.
Systematic Investments and Customer Growth
NJR's commitment to systematic investments in infrastructure upgrades has been a key factor in its success. The company expects to invest between $619 million and $754 million in fiscal 2024 and $578 million to $742 million in fiscal 2025. This focus on enhancing services has led to the addition of 4,058 new customers in the first half of fiscal 2024, with expectations of contributing significant utility gross margin.
Price Performance and Other Stocks to Consider
Despite challenges in the market, NJR's shares have shown resilience, with a 2% increase in the past three months. For investors looking at other options in the industry, Atmos Energy (NYSE:ATO), MDU Resources (NYSE:MDU), and UGI Corporation (NYSE:UGI) are worth considering. Each of these companies holds a Zacks Rank #2 and has promising growth projections in the coming years.
In conclusion, New Jersey Resources Corporation (NYSE:NJR) continues to show strength in the utility sector, with a focus on infrastructure upgrades, dividend growth, and customer expansion. With a positive outlook for earnings growth and a track record of surpassing expectations, NJR remains a solid investment choice for investors looking for stability and growth in the market.
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