Stock of the Day

Norfolk Southern (NSC)

$250.65

+$3.25 (+1.3%)

Market Cap: $56.39B

About Norfolk Southern

Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.

It also transports overseas freight through various Atlantic and Gulf Coast ports; and operates an intermodal network. As of December 31, 2023, the company operated approximately 19,100 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation was incorporated in 1980 and is headquartered in Atlanta, Georgia.

Norfolk Southern Bull Case

Here are some ways that investors could benefit from investing in Norfolk Southern Co.:

• The current stock price is around $248, reflecting a recent increase, which may indicate positive market sentiment towards the company.
• Institutional investors hold a significant portion of the stock, with over 75% owned by hedge funds and other institutional investors, suggesting strong confidence in the company's future performance.
• Recent upgrades from analysts, including a "buy" rating and increased price targets, indicate a favorable outlook for Norfolk Southern Co.'s stock performance.
• The company has shown resilience with a market capitalization of approximately $55.71 billion, indicating its strong position in the market.
• Norfolk Southern Co. has a solid P/E ratio, which can suggest that the stock is reasonably valued compared to its earnings, making it an attractive option for investors looking for growth.

Norfolk Southern Bear Case

Investors should be bearish about investing in Norfolk Southern Co. for these reasons:

• Recent price target reductions by analysts may signal concerns about the company's short-term performance and market conditions.
• The company has a relatively high debt-to-equity ratio, which could indicate higher financial risk, especially in a fluctuating economic environment.
• Despite a strong market presence, the stock has experienced volatility, with a 12-month low of around $201.63, which may deter risk-averse investors.
• Some analysts have issued hold ratings, suggesting that while the stock may not be a sell, it may not present a compelling buy opportunity at current levels.
• Market conditions can be unpredictable, and external factors such as economic downturns or changes in regulations could negatively impact Norfolk Southern Co.'s operations and profitability.

Recent News

• 2NSC : $1000 Invested In This Stock 20 Years Ago Would Be Worth This Much Today (benzinga.com)
• Norfolk Southern board chair Mongeau resigns (finance.yahoo.com)
• Norfolk Southern to present at 2025 Wells Fargo Industrials and Materials Conference (prnewswire.com)
• Claude Mongeau resigns as chair of Norfolk Southern Board (prnewswire.com)
• Goldman Sachs Downgrades Norfolk Southern (NSC) (msn.com)
• Analysts Offer Insights on Industrial Goods Companies: HEICO (HEI) and Norfolk Southern (NSC) (theglobeandmail.com)
• Norfolk Southern reopens freight rail into Asheville, marking 'a major milestone' (msn.com)