NYSE:NSC

232.30
4.61 (2.02%) 1d
0

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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Norfolk Southern (NSC-N) is currently facing significant challenges following a derailment incident in Ohio in February 2023 that deeply affected its reputation and operations. Despite attempts to mitigate damage, the company's recent quarter showed declining sales and earnings, a concerning trend for investors. An activist investor with a substantial stake has intensified scrutiny on management, advocating for improvements to the company's operating ratio. This, combined with the ongoing legal and operational issues, suggests that Norfolk Southern continues to lag behind its peers in the industry. Analysts recommend caution regarding investment in the stock until a more favorable valuation or clearer operational improvements are visible.

Consensus
Sell
Valuation
Overvalued
DON'T BUY

He likes to buy the rails on dips, but not this now. They paid a settlement on a derailment, but their quarter remained down in sales and earnings.

COMMENT

In February 2023, they had a horrifying derailment in Ohio. Last month, a proxy contest was launched by an activist investor holding $1 billion of shares, very critical of management to get their operating ratio down shareholder. NSC lags its peers the past year. 

DON'T BUY

Last week, they reported a stinker of a quarter: railway operating revenues -5% YOY, income from rail operations -32% and EPS -17%.

WAIT

Great acquisition of Kansas City by CP was a game changer. CNR is the gold standard in North America. US is not in a recession yet, but if it does happen, all the rails will get cheaper. Don't settle for just a 1% differential from the historical average, when you might be able to get it 20% cheaper.

BUY
It peaked at $299 last New Year's Eve, but has churned lower this year despite delivering good results. Investors have kept worrying about rising rates, and recently there were heated labour negotiations with the rails. Shares are down 19% this year to attractive levels.
BUY ON WEAKNESS
Last week when Biden bashed consolidation in industries like the rails, you had to hold your nose and NSC on the dip. Since then, NSC is up 8%. He expects Biden to bash business in the future, though congressional gridlock in Washington will mute Biden's actions.
COMMENT
asdf
DON'T BUY

The rail space has seen a great run on the back of part of a Trump rally as well as the head winds from last year rolling over. She held CSX, but sold in the last few weeks on this rally. Last time we had a really big pickup in volume we saw a reduction in margins so she took money off the table.

WAIT

We are going to run into resistance around $81. It has to prove itself by getting through $81. If you want to step in and it pulls back, okay, otherwise you have to be patient.

COMMENT

It looks less and less like the merger with Canadian Pacific (CP-T) is going to go through. The customer backlash against this is pretty strong. He would buy this on the basis of the fundamentals, not on the potential deal going through. He would rather own Canadian Pacific.

BUY

Looking at the industrial sector overall, rails are the place to be. Have been doing well with a lot of energy projects. From a valuation perspective, you are still good to own the shares.

HOLD

(Market Call Minute.) Have coal trains going down from West Virginia to the docks and empty trains going back up. Which is the ideal way to run a railway. This is a play on GDP growth because it has a lot of intermodal business on the eastern half of the US.

HOLD

(Market Call Minute.) People are in love with railways, which is always a bit of a danger signal.

COMMENT

CSX Corp (CSX-N) or Norfolk Southern (NSC-N)? He doesn’t own either of these, but his preference would be with CSX. It trades at a better multiple. Management is taking the operating ratio down. It is just north of 70 right now and they want to move it into the 65 range. They have found substitutes for their coal business. Have been quite successful, whether it is chemicals or automobiles.

BUY

(Market Call Minute.) Likes the railroads. (See Top Picks.)

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Norfolk Southern(NSC-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 1

Stockchase rating for Norfolk Southern is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Norfolk Southern(NSC-N) Frequently Asked Questions

What is Norfolk Southern stock symbol?

Norfolk Southern is a American stock, trading under the symbol NSC-N on the New York Stock Exchange (NSC). It is usually referred to as NYSE:NSC or NSC-N

Is Norfolk Southern a buy or a sell?

In the last year, 1 stock analyst published opinions about NSC-N. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Norfolk Southern.

Is Norfolk Southern a good investment or a top pick?

Norfolk Southern was recommended as a Top Pick by on . Read the latest stock experts ratings for Norfolk Southern.

Why is Norfolk Southern stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Norfolk Southern worth watching?

1 stock analyst on Stockchase covered Norfolk Southern In the last year. It is a trending stock that is worth watching.

What is Norfolk Southern stock price?

On 2025-03-14, Norfolk Southern (NSC-N) stock closed at a price of $232.3.