However, its operating ratio (expenses/revenue) deteriorated to 75.4% in 2009 and remained stuck between 69% and 73% from 2010 to 2015. This paled in comparison to progress made by peers Union Pacific and Canadian Pacific, which lack Norfolk’s exposure to Appalachian coal. However, by 2017 the rail was back vertical integration examples in india on track, improving to an adjusted 60.1% in 2021. In recent years, Norfolk renewed its commitment to pricing discipline and adopted precision railroading principles. Despite setbacks in 2022 linked to labor constraints and service issues, PSR has yielded more efficient use of locomotive assets and labor.
BlackRock Inc. Reduces Holdings in Norfolk Southern Co … – Best Stocks
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As of December 31, 2022, 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. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.32% per year. These returns cover a period from January 1, 1988 through July 31, 2023.
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After years outperforming the market, freight-rail stocks Norfolk Southern, Union Pacific, Canadian National, Canadian Pacific, and CSX have stalled. Norfolk Southern Corp. booked a $416 million charge related to the train derailment in East Palestine, Ohio during its second quarter results, taking the costs related to the incident to $803 million. Norfolk Southern’s stock is owned by a number of institutional and retail investors. Top institutional shareholders include BlackRock Inc. (6.99%), Bank Julius Baer & Co. Ltd Zurich (4.40%), State Street Corp (4.06%), Lazard Asset Management LLC (3.68%), Capital World Investors (2.42%) and Geode Capital Management LLC (1.85%).
Norfolk Southern Corp has been recognized as a leader in the transportation industry, winning numerous awards for its safety and environmental sustainability. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated. The technique has proven to be very useful for finding positive surprises.
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NSC’s historical performance
against its industry peers and the overall market. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
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Despite its strong financial performance and growth prospects, Norfolk Southern Corp faces risks and challenges that could impact its business. One of the biggest challenges is the ongoing competition in the transportation industry. The company faces intense competition from other railroads and different modes of transportation, such as trucking and air freight. This competition could put pressure on Norfolk Southern Corp’s pricing and profitability. 26 Wall Street research analysts have issued «buy,» «hold,» and «sell» ratings for Norfolk Southern in the last twelve months.
They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. Norfolk Southern Corp’s valuation metrics are generally in line with its peers in the transportation industry. The company has a price-to-earnings ratio and a price-to-book ratio generally in line with industry averages. These metrics suggest that the market views Norfolk Southern Corp as a reasonably valued company. Norfolk Southern is a well-managed enterprise, and from the start of the rail renaissance in 2004 through 2008, it posted the highest margins among U.S.
An industry with a larger percentage of Zacks Rank #1’s and #2’s will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4’s and #5’s. The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. One share of NSC stock can currently be purchased for approximately $200.73. Sign-up to receive the latest news and ratings for Norfolk Southern and its competitors with MarketBeat’s FREE daily newsletter.
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That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.
The company’s stock price has increased over the past five years, outperforming the S&P 500 index during the same period. The company operates a major freight railroad network of over 19,000 miles of track across 22 states in the eastern United States. Norfolk Southern Corp has a fleet of locomotives and railcars that transport various goods, including coal, chemicals and agricultural products. High-growth stocks tend to represent the technology, healthcare, and communications sectors.
NSC Stock News Headlines
The costs to Norfolk Southern from the February derailment in East Palestine, Ohio, are now approaching $1 billion, the company reported Thursday. The company is scheduled to release its next quarterly earnings announcement on Wednesday, October 25th 2023. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. Class-I railroad Norfolk Southern operates in the Eastern United States. On more than 20,000 miles of track, the firm hauls shipments of coal, intermodal traffic, and a diverse mix of automobile, agriculture, metal, chemical, and forest products.
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Another risk for Norfolk Southern Corp is the potential for regulatory and political changes that could impact the transportation industry.
Norfolk Southern (NSC) Reports Q2 Earnings: What Key Metrics Have to Say
Another growth opportunity for Norfolk Southern Corp is to leverage its existing infrastructure to serve new markets. The company is exploring options to transport new types of goods, such as renewable energy equipment and industrial machinery. Norfolk Southern Corp is also investing in technology to improve its operations’ speed and efficiency, enabling it to serve new markets and compete more effectively with other transportation providers. Investors of record on Friday, August 4th will be given a dividend of $1.35 per share on Monday, August 21st. This represents a $5.40 dividend on an annualized basis and a yield of 2.69%. The coal segment is the largest, accounting for 20% of the company’s revenue.
- After years outperforming the market, freight-rail stocks Norfolk Southern, Union Pacific, Canadian National, Canadian Pacific, and CSX have stalled.
- 268 employees have rated Norfolk Southern Chief Executive Officer James A. Squires on Glassdoor.com.
- Norfolk Southern has sued rail car owners over cleanup costs stemming from the February derailment of a Norfolk-operated train in East Palestine, Ohio, that caused a toxic chemical spill.
- These returns cover a period from January 1, 1988 through July 31, 2023.
Of note, in late 2019, former Canadian National CEO Claude Mongeau ( ) joined Norfolk’s board of directors to help bolster PSR efforts. Norfolk Southern CEO Alan Shaw sits down with ‘Mad Money’ host Jim Cramer to talk the Ohio train derailment, the stock’s behavior, quarterly earnings and more. According to 23 analysts, the average rating for NSC stock is «Buy.» The 12-month stock price forecast is $243.09, which is an increase of 17.94% from the latest price. © 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
Norfolk Southern Corporation Analysis
ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Norfolk Southern supervisors didn’t heed a warning about the length of a train that would eventually derail in Ohio, spilling toxic chemicals, the NTSB said. Norfolk Southern has sued rail car owners over cleanup costs stemming from the February derailment of a Norfolk-operated train in East Palestine, Ohio, that caused a toxic chemical spill.
The consensus among Wall Street research analysts is that investors should «moderate buy» NSC shares. Norfolk Southern Corp has identified several growth opportunities it plans to pursue in the coming years. Norfolk Southern Corp is investing in new technology and equipment to improve the efficiency of its intermodal https://1investing.in/ operations and is expanding its network to serve new markets. The company is also pursuing growth opportunities in the automotive segment, which involves transporting vehicles and parts. The transportation industry in the United States is highly competitive, with numerous players operating in the market.