Norfolk Southern Corporation (NYSE:NSC) Relative Strength Index (RSI) is 34.92, with weekly volatility at 1.57% and ATR at 4.63. The NSC stock’s 52-week price range has touched low of $166.00 and a $295.14 high. Intraday shares traded counted 1.29 million, which was -15.23% lower than its 30-day average trading volume of 1.12M. Its shares traded higher over the last trading session, gaining 1.27% on 06/21/21. The shares fell to a low of $263.005 before closing at $264.76. NSC’s previous close was $261.43 while the outstanding shares total 251.40M. The firm has a beta of 1.30, a 12-month trailing P/E ratio of 29.28, and a growth ratio of 1.93.
Investors have identified the Railroads company Norfolk Southern Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $67.65 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Norfolk Southern Corporation (NSC) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For NSC, the company has in raw cash 998.0 million on their books with 501.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 2.3 billion total, with 2.25 billion as their total liabilities.
NSC were able to record 750.0 million as free cash flow during the 07/28/2021 quarter of the year, this saw their quarterly net cash flow reduce by -117.0 million. In cash movements, the company had a total of 1.01 billion as operating cash flow.
Potential earnings growth for Norfolk Southern Corporation (NSC)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/28/2021 quarter of the year, Norfolk Southern Corporation recorded a total of 2.64 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.53% coming in sequential stages and their sales for the 07/28/2021 quarter increasing by 2.5%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 721.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.92 billion. This allows shareholders to hold on to 251.40M with the recently reported earning now reading 2.68 cents per share. This is a figure that compared to analyst’s prediction for their 07/28/2021 (2.66 cents a share).
Having a look at the company’s valuation, the company is expected to record 12.86 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NSC sounds very interesting.
Is the stock of NSC attractive?
In related news, Director, MONGEAU CLAUDE bought 2,350 shares of the company’s stock in a transaction that recorded on Jun 01. The purchase was performed at an average price of 282.69, for a total value of 664,316. As the purchase deal closes, the Chairman, President and CEO, Squires James A now sold 20,000 shares of the company’s stock, valued at 5,561,614. Also, Chairman, President and CEO, Squires James A sold 70,000 shares of the company’s stock in a deal that was recorded on May 18. The shares were cost at an average price of 282.21 per share, with a total market value of 19,754,833. Following this completion of disposal, the Vice President and Controller, Allison Clyde H Jr now holds 3,700 shares of the company’s stock, valued at 1,066,710. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.10%.
14 out of 28 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on Norfolk Southern Corporation. 2 analysts has assigned a Sell rating on the NSC stock. The 12-month mean consensus price target for the company’s shares has been set at $296.05.