The company secures a Beta (Market Risk) of -0.0204, which conveys not very significant fluctuations relative to the market. As returns on the market increase, returns on owning Norfolk Southern are expected to decrease at a much lower rate. During the bear market, Norfolk Southern is likely to outperform the market. At this point, Norfolk Southern has a negative expected return of -0.0321%. Please make sure to verify Norfolk Southern's kurtosis, as well as the relationship between the day median price and relative strength index , to decide if Norfolk Southern performance from the past will be repeated at some point in the near future.
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Over the last 90 days Norfolk Southern has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Norfolk Southern is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders. ...more
Norfolk Southern Relative Risk vs. Return Landscape
If you would invest 29,444 in Norfolk Southern on October 7, 2025 and sell it today you would lose (652.00) from holding Norfolk Southern or give up 2.21% of portfolio value over 90 days. Norfolk Southern is generating negative expected returns assuming volatility of 0.8355% on return distribution over 90 days investment horizon. In other words, 7% of stocks are less volatile than Norfolk, and above 99% of all equities are expected to generate higher returns over the next 90 days.
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Considering the 90-day investment horizon Norfolk Southern is expected to under-perform the market. In addition to that, the company is 1.13 times more volatile than its market benchmark. It trades about -0.04 of its total potential returns per unit of risk. The Dow Jones Industrial is currently generating roughly 0.11 per unit of volatility.
Norfolk Southern Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Norfolk Southern's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Norfolk Southern, and traders can use it to determine the average amount a Norfolk Southern's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.0384
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Based on monthly moving average Norfolk Southern is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Norfolk Southern by adding Norfolk Southern to a well-diversified portfolio.
Norfolk Southern Fundamentals Growth
Norfolk Stock prices reflect investors' perceptions of the future prospects and financial health of Norfolk Southern, and Norfolk Southern fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Norfolk Stock performance.
By analyzing Norfolk Southern's fundamental ratios, stakeholders can gain valuable insights into Norfolk Southern's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Norfolk Southern has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Norfolk Southern has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. Norfolk Southern Corporation was incorporated in 1980 and is based in Atlanta, Georgia. Norfolk Southern operates under Railroads classification in the United States and is traded on New York Stock Exchange. It employs 18100 people.
Things to note about Norfolk Southern performance evaluation
Checking the ongoing alerts about Norfolk Southern for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Norfolk Southern help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.
Norfolk Southern generated a negative expected return over the last 90 days
Norfolk Southern has 17.48 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.
Norfolk Southern has a strongfinancial position based on the latest SEC filings
Evaluating Norfolk Southern's performance can involve analyzing a variety of financial metrics and factors. Some of the key considerations to evaluate Norfolk Southern's stock performance include:
Analyzing Norfolk Southern's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Norfolk Southern's stock is overvalued or undervalued compared to its peers.
Examining Norfolk Southern's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
Evaluating Norfolk Southern's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Norfolk Southern's management team can help you assess the Company's leadership.
Pay attention to analyst opinions and ratings of Norfolk Southern's stock. These opinions can provide insight into Norfolk Southern's potential for growth and whether the stock is currently undervalued or overvalued.
It's essential to remember that evaluating Norfolk Southern's stock performance is not an exact science, and many factors can impact Norfolk Southern's stock market price. Therefore, it's also important to diversify your portfolio and not rely solely on one company or stock for your investments.
Complementary Tools for Norfolk Stock analysis
When running Norfolk Southern's price analysis, check to measure Norfolk Southern's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Norfolk Southern is operating at the current time. Most of Norfolk Southern's value examination focuses on studying past and present price action to predict the probability of Norfolk Southern's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Norfolk Southern's price. Additionally, you may evaluate how the addition of Norfolk Southern to your portfolios can decrease your overall portfolio volatility.