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Should I invest in energy stocks?

New Jersey Resources(NJR) is an energy-services company that provides retail and wholesale energy services to customers in New Jersey and other states from the Gulf Coast to New England and Canada.

The numbers: Fiscal second-quarter revenue declined 20% to $938 million as net income and earnings per share surged 183% to $36 million and 83 cents, respectively. The debt-to-equity ratio remained low at 0.63, but a quick ratio of 0.43 indicates a weak cash position. Margins improved significantly, with the operating margin climbing 443 basis points to 6.2% and the net margin jumping 272 basis points to 3.8%.

The stock: New Jersey Resources has fallen 6% in 2009, in line with the performance of the Dow Jones Industrial Average. The stock trades at a price-to-earnings ratio of 13 and offers an attractive 3.4% dividend yield.

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