Mizuho Highlights Strong Fundamentals and Attractive Valuation for New Jersey Resources (NJR)

New Jersey Resources Corporation (NYSE:NJR) ranks among the best hydrogen and fuel cell stocks to buy for 2026. On December 17, Mizuho upgraded New Jersey Resources Corporation (NYSE:NJR) from Neutral to Outperform, lifting its price target to $54 from $51. The rating increase is based on attractive valuation and solid fundamentals, with Mizuho stating that NJR trades at a 23% discount compared to its local distribution peer group based on 2028 consensus expectations.

Mizuho claims New Jersey Resources Corporation (NYSE:NJR) is largely protected from regulatory issues that affect other in-state power companies, which are under scrutiny for affordability. The firm noted positive growth outlooks for NJR’s S&T and CEV divisions in its fiscal fourth-quarter 2025 results, with the CEV division likely benefiting from in-state generation requirements.

New Jersey Resources Corporation (NYSE:NJR) announced mixed financial results for the fiscal fourth quarter of 2025. The company posted earnings per share of $0.16, which was lower than the expected $0.19, resulting in a 15.79% negative surprise. Despite this, New Jersey Resources Corporation (NYSE:NJR) exceeded projected revenues, posting $336.08 million instead of the expected $307.19 million.

A diversified energy holding company, New Jersey Resources Corporation (NYSE:NJR) provides regulated natural gas distribution, transmission, and storage services alongside unregulated clean energy operations.

While we acknowledge the potential of NJR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NJR and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.