NJR Should I Buy
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New Jersey Resources Corp (NJR) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the stock has some positive catalysts, such as hedge fund interest and analyst upgrades, the lack of strong technical signals, mixed financial performance, and insider selling suggest that it may be better to wait for a clearer entry point or stronger signals.
The technical indicators present a mixed picture. While the moving averages are bullish (SMA_5 > SMA_20 > SMA_200), the MACD histogram is negative and expanding downward, indicating bearish momentum. RSI is neutral at 62.247, and the stock is trading near its pivot point of 53.569, with resistance at 54.406 and support at 52.732. Overall, there is no strong technical signal to suggest immediate action.
Hedge funds are significantly increasing their positions in NJR, with a 112.67% increase in buying activity over the last quarter.
Analysts have upgraded the stock recently, with JPMorgan raising the price target to $56 and maintaining an Overweight rating, and Mizuho upgrading the stock to Outperform, citing attractive valuation and strong fundamentals.
Insiders are selling shares, with a 181.37% increase in selling activity over the last month.
Financial performance in Q1 2026 shows declining net income (-6.72% YoY), EPS (-7.63% YoY), and gross margin (-1.79% YoY), despite a revenue increase of 23.85%.
In Q1 2026, NJR's revenue increased by 23.85% YoY to $604.85 million, but net income dropped by 6.72% YoY to $122.49 million. EPS also declined by 7.63% YoY to 1.21, and gross margin fell slightly to 49.44%. The financials indicate growth in revenue but declining profitability metrics.
Analysts are positive on NJR, with JPMorgan raising the price target to $56 and maintaining an Overweight rating, and Mizuho upgrading the stock to Outperform with a price target of $54. Analysts highlight the company's attractive valuation, strong fundamentals, and potential near-term earnings upside from natural gas market volatility.
