Assessing New Jersey Resources (NJR) Valuation After Strong Earnings Growth and 2026 Guidance Reveal

New Jersey Resources (NJR) just posted annual results showing increased revenue and higher net income over last year. The company also introduced new fiscal 2026 earnings guidance and maintained a steady multi-year growth goal.

See our latest analysis for New Jersey Resources.

Following steady results and fresh guidance, New Jersey Resources has seen momentum pick up, with the 1-week share price return at 3.05% and 1-year total shareholder return now just above breakeven. Strategic leadership changes along with a solid long-term growth target are helping to support investor confidence and set the stage for potentially improving performance.

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With revenue and net income both trending upward, and shares still trading at a double-digit discount to analyst price targets, investors are left wondering if growth is truly on sale or if the market already sees what’s ahead.

Most Popular Narrative: 10.3% Undervalued

With the market last closing at $48.04 and the most widely followed narrative pointing to a fair value of $53.57, New Jersey Resources is seen as having meaningful upside potential, even as analysts project a mild decline in business fundamentals. This setup spotlights a valuation gap between the current share price and the latest consensus, sparking debate over the underlying assumptions.

A multi-year pipeline of solar and clean energy projects at Clean Energy Ventures, supported by flexible, risk-adjusted capital deployment, offers upside to future revenues and margin diversification as demand for renewable infrastructure accelerates. Ongoing modernization and expansion initiatives in storage and transportation (such as potential Leaf River expansion and Adelphia rate case resolution) provide rate base and organic growth opportunities that enhance stable, fee-based cash flows and improve long-term earnings visibility.

Read the complete narrative.

The analysts’ price target hinges on a bold set of growth drivers such as infrastructure upgrades and expansion bets. The biggest X factor is how future earnings projections were set. Curious what key forecasts are behind this valuation? See what it takes to get there.

Result: Fair Value of $53.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, heavy reliance on natural gas infrastructure and uncertain regulatory support could present challenges for both NJR’s growth outlook and its ability to sustain margins.

Find out about the key risks to this New Jersey Resources narrative.

Another View: What Do Earnings Ratios Suggest?

Looking at the stock from an earnings ratio angle, New Jersey Resources trades at 14.4 times earnings, which is slightly higher than the global gas utilities average of 14 times but below the US peer average of 20.3 times. Our fair ratio model points to 17.3 as a number the market might eventually revert toward. This suggests some potential upside, while also highlighting uncertainty about whether the current narrative justifies such a move. Will the market close this gap, or is caution still warranted?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own New Jersey Resources Narrative

If you see things differently or want to dig into the numbers yourself, you can craft your own take on New Jersey Resources in just a few minutes, your way. Do it your way.

A great starting point for your New Jersey Resources research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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