Trade-Ideas: New Jersey Resources Corporation (NJR) Is Today's New Lifetime High Stock

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.

Trade-Ideas LLC identified New Jersey Resources Corporation ( NJR) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified New Jersey Resources Corporation as such a stock due to the following factors:

  • NJR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.4 million.
  • NJR has traded 936 shares today.
  • NJR is trading at a new lifetime high.

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More details on NJR:

New Jersey Resources Corporation, an energy services holding company, provides regulated gas distribution services, and retail and wholesale energy services. The stock currently has a dividend yield of 3%. NJR has a PE ratio of 17.9. Currently there are no analysts that rate New Jersey Resources Corporation a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for New Jersey Resources Corporation has been 218,300 shares per day over the past 30 days. New Jersey has a market cap of $2.5 billion and is part of the utilities sector and utilities industry. Shares are up 32.5% year-to-date as of the close of trading on Friday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates New Jersey Resources Corporation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, NJR's share price has jumped by 31.02%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, NJR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.97, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.24 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • NJR, with its decline in revenue, underperformed when compared the industry average of 8.2%. Since the same quarter one year prior, revenues fell by 19.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • NEW JERSEY RESOURCES CORP's earnings per share declined by 20.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, NEW JERSEY RESOURCES CORP increased its bottom line by earning $3.33 versus $2.74 in the prior year. For the next year, the market is expecting a contraction of 7.5% in earnings ($3.08 versus $3.33).

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

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