NJR Should I Buy
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New Jersey Resources Corp (NJR) is a good buy for a beginner investor with a long-term horizon and $50,000-$100,000 available for investment. The stock demonstrates strong fundamentals, positive analyst sentiment, and a favorable technical setup. Additionally, hedge fund buying activity and strategic investments in renewable energy provide further confidence in the stock's growth potential.
The technical indicators suggest a bullish trend. The MACD is positive and contracting, RSI is neutral at 54.924, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading close to its pivot level of 53.043, with support at 51.794 and resistance at 54.292. These factors indicate a stable upward trend.
Hedge funds are significantly increasing their positions in NJR, with a 112.67% increase in buying activity over the last quarter.
Analysts have raised price targets, with JPMorgan increasing it to $56 and Mizuho upgrading the stock to Outperform with a $54 target.
Bragg Financial Advisors' recent acquisition of 205,627 shares reflects institutional confidence.
The company has announced a $4.8 billion to $5.2 billion investment plan through 2030, focusing on renewable energy and utility sectors, aligning with long-term growth trends.
Insider selling activity has increased by 181.37% over the last month, which could indicate some caution from company insiders.
Financial performance shows a decline in net income (-6.72% YoY), EPS (-7.63% YoY), and gross margin (-1.79% YoY) in Q1 2026, which may raise concerns about profitability.
In Q1 2026, revenue increased by 23.85% YoY to $604.85 million, reflecting strong top-line growth. However, net income dropped by 6.72% YoY to $122.49 million, EPS decreased by 7.63% YoY to 1.21, and gross margin declined slightly to 49.44%. Despite these profitability challenges, the company's long-term investment plan and revenue growth are promising.
Analysts are optimistic about NJR, with JPMorgan raising the price target to $56 and maintaining an Overweight rating. Mizuho upgraded the stock to Outperform with a $54 price target, citing attractive valuation, strong fundamentals, and potential earnings upside from natural gas market volatility.
