Will This Analyst Downgrade Hurt New Jersey Resources (NJR) Stock Today? (Update)

Update (9:43 a.m.): Updated with Thursday market open information.

NEW YORK (TheStreet) -- Brean Murray downgraded New Jersey Resources  (NJR) to "hold" from "buy" based on valuation.

The stock was up 2.61% to $23.94 at 9:41 a.m. on Thursday.

Must Read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

-----------

Separately, TheStreet Ratings team rates NEW JERSEY RESOURCES CORP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate NEW JERSEY RESOURCES CORP (NJR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NJR's very impressive revenue growth exceeded the industry average of 36.0%. Since the same quarter one year prior, revenues leaped by 64.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • NEW JERSEY RESOURCES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, NEW JERSEY RESOURCES CORP increased its bottom line by earning $2.74 versus $2.23 in the prior year. This year, the market expects an improvement in earnings ($4.13 versus $2.74).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Gas Utilities industry. The net income increased by 280.4% when compared to the same quarter one year prior, rising from $45.47 million to $172.97 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Gas Utilities industry and the overall market, NEW JERSEY RESOURCES CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: NJR Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Alphabet Shares Gain as Investors Shrug Off Q1 Google Spending Spree

Alphabet Shares Gain as Investors Shrug Off Q1 Google Spending Spree

SAP Shares Leap After Cloud Business Prompts Full-Year Profit Guidance Hike

SAP Shares Leap After Cloud Business Prompts Full-Year Profit Guidance Hike

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength