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Is New Jersey Resources (NJR) a Great Value Stock Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is New Jersey Resources (NJR - Free Report) . NJR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.05, which compares to its industry's average of 21.37. Over the past year, NJR's Forward P/E has been as high as 23.81 and as low as 11.02, with a median of 19.61.
We also note that NJR holds a PEG ratio of 2.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NJR's PEG compares to its industry's average PEG of 2.56. NJR's PEG has been as high as 3.40 and as low as 2.11, with a median of 2.52, all within the past year.
Another valuation metric that we should highlight is NJR's P/B ratio of 1.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.64. Within the past 52 weeks, NJR's P/B has been as high as 2.89 and as low as 1.21, with a median of 2.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NJR has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.56.
Finally, investors should note that NJR has a P/CF ratio of 10.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.17. Over the past 52 weeks, NJR's P/CF has been as high as 21.24 and as low as 8.41, with a median of 14.86.
These figures are just a handful of the metrics value investors tend to look at, but they help show that New Jersey Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NJR feels like a great value stock at the moment.
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Is New Jersey Resources (NJR) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is New Jersey Resources (NJR - Free Report) . NJR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.05, which compares to its industry's average of 21.37. Over the past year, NJR's Forward P/E has been as high as 23.81 and as low as 11.02, with a median of 19.61.
We also note that NJR holds a PEG ratio of 2.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NJR's PEG compares to its industry's average PEG of 2.56. NJR's PEG has been as high as 3.40 and as low as 2.11, with a median of 2.52, all within the past year.
Another valuation metric that we should highlight is NJR's P/B ratio of 1.60. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.64. Within the past 52 weeks, NJR's P/B has been as high as 2.89 and as low as 1.21, with a median of 2.45.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NJR has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.56.
Finally, investors should note that NJR has a P/CF ratio of 10.32. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.17. Over the past 52 weeks, NJR's P/CF has been as high as 21.24 and as low as 8.41, with a median of 14.86.
These figures are just a handful of the metrics value investors tend to look at, but they help show that New Jersey Resources is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NJR feels like a great value stock at the moment.