#3 - Norfolk Southern (NYSE:NSC)
Norfolk Southern (NYSE:NSC) is the last of the railroad stocks on our list. The railroad operates 21,000 miles of track mostly in the eastern United States.
Of the three railroad stocks we’ve discussed, NSC stock shows the highest upside compared to analyst expectations. As with many railroad stocks, efficiency is part of the bullish argument for what have traditionally been value-oriented stocks. In Norfolk’s case, the company is targeting a sub-60% operating ratio via the Thoroughbred Operating Plan it instituted in 2021.
The company is guiding to revenue growth in the high single digits with operating margin gains between 0.5% and 1%. Both revenue and earnings are projected to grow at a faster pace in the next five years. That may help the company grow into what right now appears to be a high valuation. Norfolk Southern pays an attractive dividend that currently pays out $4.96 per share on an annual basis.
About Norfolk Southern
Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals consist of sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.
Read More - Current Price
- $241.34
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 13 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $262.32 (8.7% Upside)
