Norfolk Southern Stock Buy Hold or Sell Recommendation

NSC Stock  USD 264.26  5.33  2.06%   
Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Norfolk Southern is 'Strong Hold'. Macroaxis provides Norfolk Southern buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding NSC positions.
  
Check out Norfolk Southern Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Norfolk Stock refer to our How to Trade Norfolk Stock guide.
In addition, we conduct extensive research on individual companies such as Norfolk and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards 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.

Execute Norfolk Southern Buy or Sell Advice

The Norfolk recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Norfolk Southern. Macroaxis does not own or have any residual interests in Norfolk Southern or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Norfolk Southern's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Norfolk SouthernBuy Norfolk Southern
Strong Hold

Market Performance

ModestDetails

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Almost neglects market trendsDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

UnavailableDetails
For the selected time horizon Norfolk Southern has a Risk Adjusted Performance of 0.0601, Jensen Alpha of (0.02), Total Risk Alpha of (0.09), Sortino Ratio of 0.0267 and Treynor Ratio of 0.0753
Macroaxis provides trade recommendations on Norfolk Southern to complement and cross-verify current analyst consensus on Norfolk Southern. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Norfolk Southern is not overpriced, please verify all Norfolk Southern fundamentals, including its revenue, current ratio, beta, as well as the relationship between the cash and equivalents and earnings per share . Given that Norfolk Southern has a price to earning of 18.90 X, we recommend you to check Norfolk Southern market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Norfolk Southern Trading Alerts and Improvement Suggestions

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 77.0% 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 thelincolnianonline.com: Insider Trading

Norfolk Southern Returns Distribution Density

The distribution of Norfolk Southern's historical returns is an attempt to chart the uncertainty of Norfolk Southern's future price movements. The chart of the probability distribution of Norfolk Southern daily returns describes the distribution of returns around its average expected value. We use Norfolk Southern price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Norfolk Southern returns is essential to provide solid investment advice for Norfolk Southern.
Mean Return
0.14
Value At Risk
-2.27
Potential Upside
2.69
Standard Deviation
1.89
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Norfolk Southern historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Norfolk Stock Institutional Investors

Shares
Mizuho Securities Usa Inc2024-09-30
3.3 M
Boston Partners Global Investors, Inc2024-06-30
3.1 M
Bank Of America Corp2024-06-30
M
American Century Companies Inc2024-09-30
2.9 M
Fmr Inc2024-09-30
2.7 M
Northern Trust Corp2024-09-30
2.6 M
Norges Bank2024-06-30
2.4 M
Legal & General Group Plc2024-06-30
2.4 M
Bank Of New York Mellon Corp2024-06-30
1.9 M
Vanguard Group Inc2024-09-30
19.9 M
Blackrock Inc2024-06-30
14.4 M
Note, although Norfolk Southern's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Norfolk Southern Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory15M(37M)23M3M(11M)(10.5M)
Change In Cash134M535M(276M)(383M)1.1B1.2B
Free Cash Flow1.9B2.1B2.8B2.3B830M908.8M
Depreciation1.1B1.2B1.2B1.2B1.3B696.1M
Other Non Cash Items(118M)(248M)(176M)(151M)(265M)(251.8M)
Dividends Paid949M960M1.0B1.2B1.2B1.3B
Capital Expenditures2.0B1.5B1.5B1.9B2.3B1.4B
Net Income2.7B2.0B3.0B3.3B1.8B1.5B
End Period Cash Flow580M1.1B839M456M1.6B1.6B
Investments(18M)(13M)89M(1.6B)(1.9B)(1.8B)
Change Receivables87M71M(133M)(171M)(153.9M)(146.2M)
Change To Netincome170M339M(78M)(68M)(61.2M)(64.3M)

Norfolk Southern Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Norfolk Southern or Ground Transportation sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Norfolk Southern's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Norfolk stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
-0.02
β
Beta against Dow Jones1.67
σ
Overall volatility
1.91
Ir
Information ratio 0.02

Norfolk Southern Volatility Alert

Norfolk Southern has relatively low volatility with skewness of 2.19 and kurtosis of 10.27. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Norfolk Southern's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Norfolk Southern's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Norfolk Southern Fundamentals Vs Peers

Comparing Norfolk Southern's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Norfolk Southern's direct or indirect competition across all of the common fundamentals between Norfolk Southern and the related equities. This way, we can detect undervalued stocks with similar characteristics as Norfolk Southern or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Norfolk Southern's fundamental indicators could also be used in its relative valuation, which is a method of valuing Norfolk Southern by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Norfolk Southern to competition
FundamentalsNorfolk SouthernPeer Average
Return On Equity0.18-0.31
Return On Asset0.0677-0.14
Profit Margin0.20 %(1.27) %
Operating Margin0.50 %(5.51) %
Current Valuation74.8 B16.62 B
Shares Outstanding226.24 M571.82 M
Shares Owned By Insiders0.07 %10.09 %
Shares Owned By Institutions77.00 %39.21 %
Number Of Shares Shorted2.19 M4.71 M
Price To Earning18.90 X28.72 X
Price To Book4.25 X9.51 X
Price To Sales4.81 X11.42 X
Revenue12.16 B9.43 B
Gross Profit6.16 B27.38 B
EBITDA2.85 B3.9 B
Net Income1.83 B570.98 M
Cash And Equivalents456 M2.7 B
Cash Per Share5.24 X5.01 X
Total Debt17.57 B5.32 B
Debt To Equity1.20 %48.70 %
Current Ratio0.97 X2.16 X
Book Value Per Share60.93 X1.93 K
Cash Flow From Operations3.18 B971.22 M
Short Ratio1.88 X4.00 X
Earnings Per Share10.65 X3.12 X
Price To Earnings To Growth2.30 X4.89 X
Target Price275.76
Number Of Employees20.7 K18.84 K
Beta1.3-0.15
Market Capitalization58.58 B19.03 B
Total Asset41.65 B29.47 B
Retained Earnings10.7 B9.33 B
Working Capital639 M1.48 B
Note: Insider Trading [view details]

Norfolk Southern Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Norfolk . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Norfolk Southern Buy or Sell Advice

When is the right time to buy or sell Norfolk Southern? Buying financial instruments such as Norfolk Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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When determining whether Norfolk Southern offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Norfolk Southern's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Norfolk Southern Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Norfolk Southern Stock:
Check out Norfolk Southern Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
For information on how to trade Norfolk Stock refer to our How to Trade Norfolk Stock guide.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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
10.65
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.
Please note, there is a significant difference between Norfolk Southern's value and its price as these two are different measures arrived at by different 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.