A strong stock as of late has been New Jersey Resources (NJR). Shares have been marching higher, with the stock up 3.3% over the past month. The stock hit a new 52-week high of $57.91 in the previous session. New Jersey Resources has gained 25.3% since the start of the year compared to the 6.9% move for the Zacks Utilities sector and the 5.8% return for the Zacks Utility - Gas Distribution industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on May 4, 2026, New Jersey Resources reported EPS of $2.2 versus consensus estimate of $1.89.
For the current fiscal year, New Jersey Resources is expected to post earnings of $3.45 per share on $2.21 in revenues. This represents a 5.5% change in EPS on a 8.54% change in revenues. For the next fiscal year, the company is expected to earn $3.47 per share on $2.36 in revenues. This represents a year-over-year change of 0.65% and 6.56%, respectively.
Valuation Metrics
While New Jersey Resources has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
New Jersey Resources has a Value Score of B. The stock's Growth and Momentum Scores are B and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 16.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 17.6X. On a trailing cash flow basis, the stock currently trades at 11.2X versus its peer group's average of 9.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, New Jersey Resources currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if New Jersey Resources fits the bill. Thus, it seems as though New Jersey Resources shares could have potential in the weeks and months to come.
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NewJersey Resources Corporation (NJR): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).