Is Norfolk Southern Stock a Good Investment?
Norfolk Southern Investment Advice | NSC |
- Examine Norfolk Southern's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Norfolk Southern's leadership team and their track record. Good management can help Norfolk Southern navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Ground Transportation space and any emerging trends that could impact Norfolk Southern's business and its evolving consumer preferences.
- Compare Norfolk Southern's performance and market position to its competitors. Analyze how Norfolk Southern is positioned in terms of product offerings, innovation, and market share.
- Check if Norfolk Southern pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Norfolk Southern's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Norfolk Southern stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Norfolk Southern is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Modest | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Norfolk Southern Stock
Researching Norfolk Southern's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 78.0% of the company shares are owned by institutional investors. The book value of Norfolk Southern was now reported as 60.93. The company has Price/Earnings To Growth (PEG) ratio of 2.45. Norfolk Southern recorded earning per share (EPS) of 10.66. The entity last dividend was issued on the 1st of November 2024. The firm had 3:1 split on the 10th of October 1997.
To determine if Norfolk Southern is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Norfolk Southern's research are outlined below:
| Norfolk Southern has 17.57 B in debt with debt to equity (D/E) ratio of 1.2, which is OK given its current industry classification. Norfolk Southern has a current ratio of 0.95, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Norfolk to invest in growth at high rates of return. | |
| Over 78.0% of Norfolk Southern shares are owned by institutional investors | |
| On 20th of November 2024 Norfolk Southern paid $ 1.35 per share dividend to its current shareholders | |
| Latest headline from MacroaxisInsider: Insider Trading |
Norfolk Southern uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Norfolk Southern. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Norfolk Southern's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 24th of April 2024 Upcoming Quarterly Report | View | |
| 25th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 24th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Norfolk Southern's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Norfolk Southern's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2000-04-26 | 2000-03-31 | 0.05 | 0.04 | -0.01 | 20 | ||
2003-01-29 | 2002-12-31 | 0.3 | 0.33 | 0.03 | 10 | ||
2001-01-24 | 2000-12-31 | 0.07 | 0.11 | 0.04 | 57 | ||
2000-01-26 | 1999-12-31 | 0.12 | 0.08 | -0.04 | 33 | ||
1998-04-22 | 1998-03-31 | 0.43 | 0.48 | 0.05 | 11 | ||
2004-01-28 | 2003-12-31 | 0.37 | 0.43 | 0.06 | 16 | ||
2001-04-25 | 2001-03-31 | 0.1 | 0.16 | 0.06 | 60 | ||
2002-01-23 | 2001-12-31 | 0.23 | 0.3 | 0.07 | 30 |
Norfolk Southern Target Price Consensus
Norfolk target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Norfolk Southern's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 28 | Buy |
Most Norfolk analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Norfolk stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Norfolk Southern, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationNorfolk Southern Target Price Projection
Norfolk Southern's current and average target prices are 275.38 and 234.70, respectively. The current price of Norfolk Southern is the price at which Norfolk Southern is currently trading. On the other hand, Norfolk Southern's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Norfolk Southern Market Quote on 28th of November 2024
Target Price
Analyst Consensus On Norfolk Southern Target Price
Norfolk Southern Analyst Ratings
Norfolk Southern's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Norfolk Southern stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Norfolk Southern's financials, market performance, and future outlook by experienced professionals. Norfolk Southern's historical ratings below, therefore, can serve as a valuable tool for investors.Know Norfolk Southern's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Norfolk Southern is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Norfolk Southern backward and forwards among themselves. Norfolk Southern's institutional investor refers to the entity that pools money to purchase Norfolk Southern's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Boston Partners Global Investors, Inc | 2024-09-30 | 3.4 M | Mizuho Securities Usa Inc | 2024-09-30 | 3.3 M | Bank Of America Corp | 2024-06-30 | 3 M | American Century Companies Inc | 2024-09-30 | 2.9 M | Fmr Inc | 2024-09-30 | 2.7 M | Northern Trust Corp | 2024-09-30 | 2.6 M | Norges Bank | 2024-06-30 | 2.4 M | Legal & General Group Plc | 2024-06-30 | 2.4 M | Bank Of New York Mellon Corp | 2024-06-30 | 1.9 M | Vanguard Group Inc | 2024-09-30 | 19.9 M | Blackrock Inc | 2024-06-30 | 14.4 M |
Norfolk Southern's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 62.46 B.Market Cap |
|
Norfolk Southern's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.04 | |
| Return On Capital Employed | 0.07 | 0.07 | |
| Return On Assets | 0.04 | 0.04 | |
| Return On Equity | 0.14 | 0.10 |
Determining Norfolk Southern's profitability involves analyzing its financial statements and using various financial metrics to determine if Norfolk Southern is a good buy. For example, gross profit margin measures Norfolk Southern's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Norfolk Southern's profitability and make more informed investment decisions.
Please note, the presentation of Norfolk Southern's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Norfolk Southern's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Norfolk Southern's management manipulating its earnings.
Evaluate Norfolk Southern's management efficiency
Norfolk Southern has Return on Asset of 0.0677 % which means that on every $100 spent on assets, it made $0.0677 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.183 %, implying that it generated $0.183 on every 100 dollars invested. Norfolk Southern's management efficiency ratios could be used to measure how well Norfolk Southern manages its routine affairs as well as how well it operates its assets and liabilities. As of November 28, 2024, Return On Tangible Assets is expected to decline to 0.04. In addition to that, Return On Capital Employed is expected to decline to 0.07. At present, Norfolk Southern's Fixed Asset Turnover is projected to slightly decrease based on the last few years of reporting. The current year's Asset Turnover is expected to grow to 0.39, whereas Total Assets are forecasted to decline to about 25.5 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 56.33 | 59.15 | |
| Tangible Book Value Per Share | 58.70 | 61.64 | |
| Enterprise Value Over EBITDA | 16.05 | 8.86 | |
| Price Book Value Ratio | 4.20 | 4.41 | |
| Enterprise Value Multiple | 16.05 | 8.86 | |
| Price Fair Value | 4.20 | 4.41 | |
| Enterprise Value | 45.8 B | 48.1 B |
Leadership at Norfolk Southern emphasizes sustainable growth and financial prudence. Our analysis evaluates how these priorities impact the stock's performance in the market.
Dividend Yield 0.0196 | Forward Dividend Yield 0.0196 | Forward Dividend Rate 5.4 | Beta 1.302 |
Basic technical analysis of Norfolk Stock
As of the 28th of November, Norfolk Southern secures the Risk Adjusted Performance of 0.0953, downside deviation of 1.49, and Mean Deviation of 1.28. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Norfolk Southern, as well as the relationship between them.Norfolk Southern's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Norfolk Southern insiders, such as employees or executives, is commonly permitted as long as it does not rely on Norfolk Southern's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Norfolk Southern insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Jason Zampi 2 days ago Insider Trading | ||
Fahmy Sameh 3 days ago Acquisition by Fahmy Sameh of tradable shares of Norfolk Southern subject to Rule 16b-3 | ||
Jason Zampi over two weeks ago Insider Trading | ||
Jason Zampi over three weeks ago Insider Trading | ||
Jason Zampi over three weeks ago Insider Trading | ||
Jason Zampi over a month ago Insider Trading | ||
Jason Zampi over a month ago Insider Trading | ||
Fahmy Sameh over three months ago Acquisition by Fahmy Sameh of 2000 shares of Norfolk Southern at 219.25 subject to Rule 16b-3 | ||
Michael Wheeler over a year ago Payment of 4411 shares by Michael Wheeler of Norfolk Southern subject to Rule 16b-3 |
Norfolk Southern's Outstanding Corporate Bonds
Norfolk Southern issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Norfolk Southern uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Norfolk bonds can be classified according to their maturity, which is the date when Norfolk Southern has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| NORFOLK SOUTHN P Corp BondUS655844BT49 | View | |
| NORFOLK SOUTHN P Corp BondUS655844BS65 | View | |
| NORFOLK SOUTHN P Corp BondUS655844BR82 | View | |
| NORFOLK SOUTHN P Corp BondUS655844BQ00 | View | |
| NORFOLK SOUTHN P Corp BondUS655844BM95 | View | |
| NORFOLK SOUTHN P Corp BondUS655844BH01 | View | |
| NORFOLK SOUTHN P Corp BondUS655844AX69 | View |
Understand Norfolk Southern's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Norfolk Southern's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0953 | |||
| Market Risk Adjusted Performance | 0.1361 | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 1.29 | |||
| Downside Deviation | 1.49 | |||
| Coefficient Of Variation | 856.08 | |||
| Standard Deviation | 1.91 | |||
| Variance | 3.66 | |||
| Information Ratio | 0.0486 | |||
| Jensen Alpha | 0.0096 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0624 | |||
| Treynor Ratio | 0.1261 | |||
| Maximum Drawdown | 12.14 | |||
| Value At Risk | (2.27) | |||
| Potential Upside | 2.69 | |||
| Downside Variance | 2.22 | |||
| Semi Variance | 1.65 | |||
| Expected Short fall | (1.39) | |||
| Skewness | 2.04 | |||
| Kurtosis | 9.25 |
| Risk Adjusted Performance | 0.0953 | |||
| Market Risk Adjusted Performance | 0.1361 | |||
| Mean Deviation | 1.28 | |||
| Semi Deviation | 1.29 | |||
| Downside Deviation | 1.49 | |||
| Coefficient Of Variation | 856.08 | |||
| Standard Deviation | 1.91 | |||
| Variance | 3.66 | |||
| Information Ratio | 0.0486 | |||
| Jensen Alpha | 0.0096 | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | 0.0624 | |||
| Treynor Ratio | 0.1261 | |||
| Maximum Drawdown | 12.14 | |||
| Value At Risk | (2.27) | |||
| Potential Upside | 2.69 | |||
| Downside Variance | 2.22 | |||
| Semi Variance | 1.65 | |||
| Expected Short fall | (1.39) | |||
| Skewness | 2.04 | |||
| Kurtosis | 9.25 |
Consider Norfolk Southern's intraday indicators
Norfolk Southern intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Norfolk Southern stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 5491.92 | |||
| Daily Balance Of Power | (0.29) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 276.07 | |||
| Day Typical Price | 275.84 | |||
| Price Action Indicator | (1.04) | |||
| Period Momentum Indicator | (0.71) | |||
| Relative Strength Index | 61.1 |
Norfolk Southern Corporate Filings
F4 | 22nd of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
8K | 14th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 4th of October 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
10Q | 26th of July 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Norfolk Stock media impact
Far too much social signal, news, headlines, and media speculation about Norfolk Southern that are available to investors today. That information is available publicly through Norfolk media outlets and privately through word of mouth or via Norfolk internal channels. However, regardless of the origin, that massive amount of Norfolk data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Norfolk Southern news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Norfolk Southern relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Norfolk Southern's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Norfolk Southern alpha.
Norfolk Southern Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Norfolk Southern can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Norfolk Southern Historical Investor Sentiment
Investor biases related to Norfolk Southern's public news can be used to forecast risks associated with an investment in Norfolk. The trend in average sentiment can be used to explain how an investor holding Norfolk can time the market purely based on public headlines and social activities around Norfolk Southern. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Norfolk Southern's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Norfolk Southern and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Norfolk Southern news discussions. The higher the estimate score, the more favorable the investor's outlook on Norfolk Southern.
Norfolk Southern Corporate Directors
| Mitchell Daniels | Independent Director | Profile | |
| Steven Leer | Lead Independent Director | Profile | |
| Marcela Donadio | Independent Director | Profile | |
| John Huffard | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Norfolk Southern. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state. For information on how to trade Norfolk Stock refer to our How to Trade Norfolk Stock guide.You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Is Ground Transportation space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Norfolk Southern. If investors know Norfolk will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Norfolk Southern listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.31 | Dividend Share 5.4 | Earnings Share 10.66 | Revenue Per Share 53.858 | Quarterly Revenue Growth 0.027 |
The market value of Norfolk Southern is measured differently than its book value, which is the value of Norfolk that is recorded on the company's balance sheet. Investors also form their own opinion of Norfolk Southern's value that differs from its market value or its book value, called intrinsic value, which is Norfolk Southern's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Norfolk Southern's market value can be influenced by many factors that don't directly affect Norfolk Southern's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Norfolk Southern's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Norfolk Southern is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Norfolk Southern's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.