For Norfolk Southern Corporation [NSC], Analyst sees a rise to $230. What next?

Norfolk Southern Corporation [NYSE: NSC] closed the trading session at $225.79 on 11/05/20. The day’s price range saw the stock hit a low of $222.29, while the highest price level was $228.15. The company report on October 28, 2020 that Norfolk Southern reports third-quarter 2020 results.

Norfolk Southern Corporation (NYSE: NSC) reported financial results for the quarter ended September 30, 2020. During the quarter, the company achieved net income of $569 million, diluted earnings per share of $2.22, and an operating ratio of 66.5%. These results include a previously announced $99 million non-cash impairment charge. Excluding the effects of the impairment charge, adjusted third-quarter net income was $643 million, adjusted diluted earnings per share were $2.51, and the adjusted operating ratio was 62.5%, which reflects a 240 basis point improvement compared with third-quarter 2019.

“Since launching our Precision Scheduled Railroading strategy, we have significantly enhanced Norfolk Southern’s operational and financial performance and delivered superior returns for shareholders,” said James A. Squires, Norfolk Southern chairman, president and CEO. “Given the impact of the COVID-19 pandemic on our industry and the broader economy, we quickly executed a plan to align our assets and resources with demand and generate sustainable margin improvement. In addition to maintaining outstanding service levels with fewer resources and reduced headcount, we successfully idled our fifth hump in the last five quarters, helping Norfolk Southern achieve record productivity. With the resilience of our railroad, strong customer relationships and the hard work of our team, including new Chief Operating Officer and PSR veteran Cindy Sanborn, we are confident in our ability to achieve our goal of a 60% operating ratio with more to come, while delivering enhanced free cash flow and further value creation for Norfolk Southern shareholders.”.

The stocks have a year to date performance of 16.31 percent and weekly performance of 9.81 percent. The stock has been moved at 29.21 percent over the last six months. The stock has performed 4.12 percent around the most recent 30 days and changed 13.47 percent over the most recent 3-months.

If compared to the average trading volume of 1.32M shares, NSC reached to a volume of 1301672 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Norfolk Southern Corporation [NSC]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for NSC shares is $231.75 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on NSC stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Barclays have made an estimate for Norfolk Southern Corporation shares, keeping their opinion on the stock as Equal Weight, with their previous recommendation back on October 16, 2020. While these analysts kept the previous recommendation, Cowen raised their target price from $208 to $221. The new note on the price target was released on October 08, 2020, representing the official price target for Norfolk Southern Corporation stock. Previously, the target price had yet another raise to $250, while The Benchmark Company analysts kept a Buy rating on NSC stock.

The Average True Range (ATR) for Norfolk Southern Corporation is set at 6.32, with the Price to Sales ratio for NSC stock in the period of the last 12 months amounting to 5.69. The Price to Book ratio for the last quarter was 3.85, with the Price to Cash per share for the same quarter was set at 5.44. Price to Free Cash Flow for NSC in the course of the last twelve months was 50.44 with Quick ratio for the last quarter at 1.20.

NSC stock trade performance evaluation

Norfolk Southern Corporation [NSC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 9.81. With this latest performance, NSC shares gained by 4.12% in over the last four-week period, additionally plugging by 29.21% over the last 6 months – not to mention a rise of 17.01% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for NSC stock in for the last two-week period is set at 61.42, with the RSI for the last a single of trading hit 65.43, and the three-weeks RSI is set at 59.29 for Norfolk Southern Corporation [NSC]. The present Moving Average for the last 50 days of trading for this stock 215.01, while it was recorded at 218.85 for the last single week of trading, and 187.66 for the last 200 days.

Norfolk Southern Corporation [NSC]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Norfolk Southern Corporation [NSC] shares currently have an operating margin of +34.46 and a Gross Margin at +34.46. Norfolk Southern Corporation’s Net Margin is presently recorded at +24.05.

Return on Total Capital for NSC is now 14.16, given the latest momentum, and Return on Invested Capital for the company is 10.07. Return on Equity for this stock inclined to 17.79, with Return on Assets sitting at 7.25. When it comes to the capital structure of this company, Norfolk Southern Corporation [NSC] has a Total Debt to Total Equity ratio set at 85.71. Additionally, NSC Total Debt to Total Capital is recorded at 46.15, with Total Debt to Total Assets ending up at 33.91. Long-Term Debt to Equity for the company is recorded at 82.99, with the Long-Term Debt to Total Capital now at 44.69.

Receivables Turnover for the company is 11.71 with a Total Asset Turnover recorded at a value of 0.30.Norfolk Southern Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.30.

Earnings per share (EPS) analysis for Norfolk Southern Corporation [NSC] stock

With the latest financial reports released by the company, Norfolk Southern Corporation posted 2.55/share EPS, while the average EPS was predicted by analysts to be reported at 2.28/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 11.80%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for NSC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Norfolk Southern Corporation go to 7.18%.

Norfolk Southern Corporation [NSC]: Insider Ownership positions

There are presently around $42,484 million, or 79.40% of NSC stock, in the hands of institutional investors. The top three institutional holders of NSC stocks are: VANGUARD GROUP INC with ownership of 19,479,766, which is approximately -3.302% of the company’s market cap and around 0.10% of the total institutional ownership; BLACKROCK INC., holding 17,512,124 shares of the stock with an approximate value of $3.95 billion in NSC stocks shares; and JPMORGAN CHASE & CO, currently with $3.47 billion in NSC stock with ownership of nearly 14.511% of the company’s market capitalization.

Positions in Norfolk Southern Corporation stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 498 institutional holders increased their position in Norfolk Southern Corporation [NYSE:NSC] by around 13,491,009 shares. Additionally, 616 investors decreased positions by around 14,916,017 shares, while 282 investors held positions by with 159,751,249 shares. The mentioned changes placed institutional holdings at 188,158,275 shares, according to the latest SEC report filing. NSC stock had 111 new institutional investments in for a total of 1,076,183 shares, while 77 institutional investors sold positions of 4,620,205 shares during the same period.

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