Norfolk Story

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NSC -- USA Stock  

USD 256.38  11.67  4.77%

Norfolk Southern Calculated Tax Rate is projected to decrease significantly based on the last few years of reporting. The past year's Calculated Tax Rate was at 25.33. The current year PPandE Turnover is expected to grow to 0.45, whereas Net Income Per Employee is forecasted to decline to about 87.1 K. Despite somewhat strong basic indicators, Norfolk Southern is not utilizing all of its potentials. The recent stock price disturbance, may contribute to a short-term swings for the investors. Will investors continue to hold, or should we expect a sell-off?
Published over a month ago
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Does Norfolk Southern (NYSE:NSC) have strong basic indicators based on the current rise?
Norfolk Southern is OVERVALUED at 228.27 per share with modest projections ahead. Norfolk Southern appears to be very steady, given 1 month investment horizon. Norfolk Southern has Sharpe Ratio of 0.19, which conveys that the firm had 0.19% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Norfolk Southern, which you can use to evaluate future volatility of the firm. Please exercise Norfolk Southern Risk Adjusted Performance of 0.1094, mean deviation of 1.35, and Downside Deviation of 1.59 to check out if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Norfolk Southern income statement, its balance sheet, and the statement of cash flows. Potential Norfolk Southern investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Norfolk Southern investors may use each financial statement separately, they are all related. The changes in Norfolk Southern's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Norfolk Southern's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Norfolk Southern fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Norfolk Southern performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Norfolk Southern shares is the value that is considered the true value of the share. If the intrinsic value Norfolk is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Norfolk Southern.
Please read more on our fundamental analysis page.

Are Norfolk Southern Earnings Expected to grow?

The future earnings power of Norfolk Southern involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Norfolk Southern factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Norfolk Southern stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Norfolk expected earnings.

And What about dividends?

A dividend is the distribution of a portion of Norfolk Southern earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Norfolk Southern dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Norfolk one year expected dividend income is about $2.17 per share.
The current year Dividend Yield is expected to grow to 0.0176, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (1 B).
Last ReportedProjected for 2021
Payment of Dividends and Other Cash Distributions-960 M-1 B
Dividend Yield 0.016  0.0176 
Dividends per Basic Common Share 3.76  3.39 
Investing in dividend-paying stocks, such as Norfolk Southern Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Norfolk Southern must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Norfolk Southern. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Norfolk Southern, but it might be worth checking our own buy vs. sell analysis

Norfolk Southern Gross Profit

Norfolk Southern Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Norfolk Southern previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Norfolk Southern Gross Profit growth over the last 10 years.
Please check Gross Profit in more details.

Norfolk Southern exotic insider transaction detected

Legal trades by Norfolk Southern insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Norfolk insider trading alert for general transaction of common stock by James Squires, Chairman President and CEO, on 26th of February 2021. This event was filed by Norfolk Southern Corp with SEC on 2021-02-26. Statement of changes in beneficial ownership - SEC Form 4. James Squires currently serves as chairman of the board, president, chief executive officer of Norfolk Southern Corp [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Another Deeper Perspective

Institutional investors typically avoid acquiring a high percentage of Norfolk Southern stocks because performing such an act may violate securities laws. They are usually not investing their own money, but rather making investments on behalf of their clients. Let's take a look at how the ownership of Norfolk is distributed among investors.

Ownership Allocation

Norfolk Southern maintains a total of two hundred fifty-three million nine hundred eighty thousand outstanding shares. The majority of Norfolk Southern outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Norfolk Southern to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Norfolk Southern. Please pay attention to any change in the institutional holdings of Norfolk Southern as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Retail Investors
21.19%
Institutions
78.69%
Retail Investors21.19
Insiders0.12
Institutions78.69

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Norfolk Southern has an asset utilization ratio of 49.66 percent. This suggests that the company is making $0.5 for each dollar of assets. An increasing asset utilization means that Norfolk Southern is more efficient with each dollar of assets it utilizes for everyday operations.

Assets Non Current
39.6 B
Current Assets1.96 Billion4.71
Assets Non Current39.55 Billion94.83
Tax Assets193.94 Million0.46

Our take on today Norfolk Southern slip

The skewness is down to 0.25 as of today. Norfolk Southern has relatively low volatility with skewness of 0.25 and kurtosis of -0.23. However, we advise all investors to independently investigate Norfolk Southern to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Norfolk Southern

Whereas some firms within the railroads industry are still a little expensive, even after the recent corrections, Norfolk Southern may offer a potential longer-term growth to investors. With a somewhat neutral outlook on your 30 days horizon, it may be better to hold off any trading activity and neither take in new shares of Norfolk nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Norfolk Southern.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Norfolk Southern Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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