The company is subject to various environmental regulations, labor laws and trade policies, which could change anytime. Changes in these regulations could increase the company’s costs or limit its ability to operate in certain markets. In 2023 the company faced significant scrutiny for its ongoing safety record and multiple train derailments. Norfolk Southern Corp is also vulnerable to consumer preferences and economic conditions changes. The company’s business is closely tied to the economy’s overall health, and a downturn could lead to decreased demand for its services. Additionally, changes in consumer preferences could shift demand away from certain goods, such as coal, which could impact the company’s revenue.
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.
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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NSC’s historical performance
against its industry peers and the overall market.
- Norfolk Southern Corp has been recognized as a leader in the transportation industry, winning numerous awards for its safety and environmental sustainability.
- Changes in these regulations could increase the company’s costs or limit its ability to operate in certain markets.
Norfolk Southern Corp’s rich history dates back to the 19th century when the company’s predecessor, the South Carolina Canal and Rail Road, was chartered in 1827. It now operates over 19,000 miles of track across the eastern United States, connecting the major metropolitan areas of the Midwest and the South. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. This site is protected by reCAPTCHA and the Google
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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.
Price and EPS Surprise Chart
Norfolk Southern Corp competes with other major railroads, such as CSX Corp and Union Pacific Corp, as well as other modes of transportation, such as trucking and air freight. The industry is subject to various regulatory and political issues, including environmental regulations, labor laws and trade policies. Norfolk Southern Corp’s stock performance has been relatively strong over the past few years, despite volatility caused by issues concerning rail safety and train derailments.
Senate panel OKs rail-safety bill as railroad vows to help homeowners affected by Ohio derailment
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.
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- The company faces intense competition from other railroads and different modes of transportation, such as trucking and air freight.
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- Norfolk Southern Corp’s leadership team comprises experienced executives committed to delivering value to the company’s stakeholders.
- Investors of record on Friday, August 4th will be given a dividend of $1.35 per share on Monday, August 21st.
However, the company’s net income increased in the same period that its revenue was dropping. Norfolk Southern Corp has a strong balance sheet, with assets of more than $35 billion and liabilities of around $25 billion. As an investor, you want to buy stocks with the highest probability of success.
East Palestine train derailment has now cost Norfolk Southern $1 billion
Use these time-tested investing strategies to grow the monthly retirement income that your stock portfolio generates. Norfolk Southern Corp’s leadership team comprises experienced executives committed to delivering value to the company’s stakeholders. The company’s CEO, Alan H. Shaw, was put into the position in May of 2022. Shaw stepped into the CEO role after being the vice president of marketing for over six years. MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation.
Norfolk Southern Corp. is a transportation company, which engages in the rail transportation of raw materials, intermediate products, and finished goods. The company also transports overseas freight through several Atlantic and Gulf Coast ports. The company was founded on July 23, 1980 and is headquartered in Atlanta, GA. Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. It also transports overseas freight through various Atlantic and Gulf Coast ports; provides commuter rail passenger transportation services; and operates an intermodal network.
NSC Stock – Frequently Asked Questions
Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The scores are based on the trading styles of Value, Growth, and Momentum. There’s also a VGM Score (‘V’ for Value, ‘G’ for Growth and ‘M’ for Momentum), which combines the weighted average of the individual style scores into one score. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security.
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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%.
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%).
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 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.
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.
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.
Insiders that own company stock include Alan H Shaw, Alan H Shaw, Ann A Adams, Clyde H Allison Jr, Clyde H Allison, Jr, Coliseum Capital Management, L, James A Squires and Steven F Leer. 268 employees have rated Norfolk Southern Chief Executive Officer James A. Squires on Glassdoor.com. James A. Squires has an approval rating of 16% among the company’s employees. This puts James A. Squires in the bottom 10% of approval ratings compared to other CEOs of publicly-traded companies. Norfolk Southern Corp has consistently delivered strong financial performance over the past few years. The company did, however, report revenue drops during the COVID-19 pandemic.
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 https://1investing.in/ 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.