Norfolk Southern Corporation: Stock Valuation and Recent Performance Review
Market capitalization for Norfolk Southern Corporation (NSC), based in Atlanta, Georgia, is currently set at $54.1 billion. The company specializes in rail transportation, managing the movement of raw materials, intermediate products, and finished goods throughout the United States. Norfolk also transports agricultural, forest, and consumer products, in addition to overseas freight through various Atlantic and Gulf Coast ports.
As a company valued at over $10 billion, NSC is classified as a “large-cap stock.” It plays a significant role in the railroad industry by providing comprehensive logistics services and maintaining the largest intermodal network on the eastern seaboard of the United States.
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Despite its stature, Norfolk Southern’s stock has declined 13.9% from its recent peak of $277.60 reached on November 6, 2024. Over the past three months, shares have dropped 6.6%, which is marginally better than the S&P 500 Index’s ($SPX) decline of 7.7% in the same timeframe.
When examining longer durations, Norfolk Southern has struggled relative to SPX. The company’s stock decreased by 7.1% over the past six months and 7.9% over the past year, notably underperforming SPX, which posted gains of 1.1% during the past six months and 9.7% over the last 52 weeks.
To support these assertions about its recent downturn, NSC’s stock has been trading below its 200-day moving average while also following a downward trend along its 50-day moving average in recent months.
Encouragingly, shares of Norfolk Southern rose nearly 1.8% following the release of its strong Q4 results on January 29. The results indicated total railway operating revenues exceeding $3 billion, with income from railway operations amounting to $1.1 billion. Additionally, Norfolk’s net income increased by 39.1% year-over-year, reaching $733 million. Its adjusted earnings per share (EPS) was $3.04, surpassing Wall Street estimates by 3.1%.
Nonetheless, the company has not performed as well as its competitor, Union Pacific Corporation (UNP), which experienced a smaller decline of 1.7% over the past six months and 1.1% over the past year.
Despite these variances, analysts maintain a moderately positive outlook on Norfolk Southern’s future. The stock holds a “Moderate Buy” consensus rating among the 26 analysts monitoring it. With a mean price target set at $277.26, this suggests a potential upside of 16% from its current pricing levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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