|Bid||42.36 x 800|
|Ask||42.37 x 1100|
|Day's Range||42.22 - 42.87|
|52 Week Range||31.94 - 43.24|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.38|
|Expense Ratio (net)||0.62%|
How to Make Sense of Economic Indicators and Invest Accordingly(Continued from Prior Part)Manufacturing activityAlthough manufacturing accounts for just 16% of global GDP, down from 18% in the late 90s, manufacturing activity remains a key leading
Panama has increasingly become popular for foreign investment due to its pro-business government, rising real estate market, and growing economy.
Industrial production up 0.3% in December riding on higher manufacturing and mining levels. This puts related ETFs in focus.
US Rail Traffic Saw Impressive Growth in the Last Week of 2018 (Continued from Prior Part) ## Rail traffic volumes Norfolk Southern (NSC) reported an 11% YoY increase in its rail traffic volumes in Week 52 driven primarily by robust growth in carloads and intermodal units. The Eastern US railroad company hauled 115,612 total units compared to 104,135 units in the same week of the previous year. Moreover, Norfolk Southern’s rail traffic growth in Week 52 was significantly higher than the overall 5.1% gain registered by US railroad companies. In 2018, Norfolk Southern’s rail traffic volumes increased 4% YoY, which was higher than the 3.7% YoY increase reported by US railroad companies during the same period. ## Carloads increased The company’s carload traffic grew for the third consecutive week. Norfolk Southern’s carload traffic made a remarkable turnaround in Week 50 after reporting falls for five consecutive weeks. In Week 52, the Eastern US railroad company’s carload traffic grew 14.2% YoY, making it the fourth-highest gainer among Class I railroad companies (FXR). BNSF Railway, Canadian Pacific (CP), and Canadian National (CNI) held the first three spots with respective carload traffic gains of 17.5%, 17%, and 16.5%, respectively. Norfolk Southern carried 53,862 railcars in Week 52 compared to 47,161 in the same period of the previous year. Kansas City Southern (KSU) was the only company that registered a decline in carload traffic in Week 52. Norfolk Southern’s commodity groups excluding coal and coke accounted for 72% of its Week 52 total carload traffic. Coal and coke traffic contributed 28% of the company’s total carloads. Commodity group traffic excluding coal and coke increased 12.9% YoY to 38,648 units from 34,231 units. Coal and coke volumes grew 17.7% YoY to 15,214 units in Week 52 from 12,930 units. The commodity groups excluding coal and coke that experienced notable volume growth in Week 52 included grain, motor vehicles and equipment, chemicals, petroleum products, and iron and steel scrap. The commodity groups that recorded YoY falls in Week 52 volumes were forest products, pulp, paper, stone, and clay. ## Intermodal volumes Norfolk Southern’s intermodal traffic grew 8.4% YoY in Week 52 to 61,750 containers and trailers compared to 56,974 units in the previous year. The company’s container traffic expanded 10% YoY to 56,966 units from 51,793 units. However, its trailer volumes decreased 7.7% YoY to 4,784 units from 5,181 units in Week 52 of 2017. Among Class I railroad companies, Norfolk Southern’s intermodal traffic growth was the second highest after Canadian National’s gain of 9.6% in Week 52. Next, we’ll discuss CSX’s rail traffic trends. Continue to Next Part Browse this series on Market Realist: * Part 1 - US Rail Traffic Saw Impressive Growth in the Last Week of 2018 * Part 2 - Canadian National Railway Was the Top Volume Gainer in Week 52 * Part 3 - Strong Carload Growth Drove Canadian Pacific’s Rail Traffic
US Rail Freight Traffic Grew 4.2% in Week 51(Continued from Prior Part)Rail traffic volume Norfolk Southern (NSC) reported a 3% YoY increase in its rail traffic volume in week 51 due to improved carloads and intermodal units.
US Rail Freight Traffic Growth Trend Continues in Week 50(Continued from Prior Part)Rail traffic volume Norfolk Southern (NSC) reported a 4.6% YoY increase in its rail traffic volume in week 50. The Eastern US railroad company hauled 159,133 total cars compared with 152,205 units in the same week of last year.
First Trust Advisors L.P. announces the declaration of distributions for 128 exchange-traded funds advised by FTA.
Norfolk Southern (NSC) reported 4.4% YoY growth in its rail traffic volume in week 47. The company hauled 134,716 total cars—compared to 129,058 units in the same week last year. The YoY growth was mainly driven by the strong performance in Norfolk Southern’s intermodal business. The growth was partially offset by weakness in the Carload segment.
Norfolk Southern (NSC) reported a 2.2% YoY fall in its rail traffic volume in week 46. The Eastern US railroad company hauled 148,100 total cars compared with 151,460 units in the same week of last year. Norfolk’s rail traffic decline in week 46 was in contrast to the 0.04% gain registered by US railroad companies. However, in the first 46 weeks, Norfolk Southern’s overall rail traffic volumes grew 4% YoY. The company’s traffic gains were higher than the 3.7% YoY growth reported by US railroad companies during the period.
Eastern US railroad company Norfolk Southern (NSC) reported a 3.3% YoY (year-over-year) fall in its carload traffic in Week 42. The company hauled ~67,800 railcars sans intermodal units in the week compared to ~70,100 in the comparable period last year.
Let’s take a look at Norfolk Southern’s (NSC) third-quarter operating margin. In the third quarter, NSC’s operating margin expanded 110 basis points to 34.6% from 33.5% in the third quarter of 2017. In the reported quarter, the railroad company’s revenue jumped 10.4%, while its operating expenses rose 8.6% to $1.927 billion.
After reviewing United Parcel Service’s (UPS) International Package segment, we’ll take a close look at its Supply Chain and Freight segment’s performance. The logistics giant’s Supply Chain and Freight vertical accounts for ~20.0% of its total revenues.
Union Pacific (UNP) has a mean analyst rating of 2.36, indicating a “buy.” The railroad company is covered by 28 Wall Street analysts leading up to its third-quarter results. For Union Pacific, analysts have set a 12-month price target of $168.31 per share. Based on the company’s closing price of $143.92 on October 23, this target indicates a ~17% potential return over the next 12 months.
Eastern US rail carrier Norfolk Southern (NSC) registered a 3.1% YoY (year-over-year) slump in carload traffic. It moved ~67,000 railcars excluding intermodal units in the week compared to ~69,100 in the comparable period last year.
The Truckload segment is J.B. Hunt Transport Services’ (JBHT) smallest segment in terms of its revenues. The segment’s share in J.B. Hunt’s third-quarter revenues declined 0.2% to 4.8% from 5.0% in the same period in 2017. The above graph reveals that the company’s Truck segment’s revenue growth in the third quarter was highest in the last eight quarters.
Norfolk Southern (NSC) is a major railroad in the Eastern United States. In week 39, Norfolk Southern recorded a 1.9% YoY (year-over-year) fall in carload traffic. The railroad carried ~69,700 railcars except for intermodal units in the week compared to ~71,000 in the same week last year.
Free cash flow (or FCF) is an important metric in the railroad (FXR) industry. Companies primarily use FCF to buy back stock, pay dividends, and reinvest in their business. Let’s compare major US railroads’ FCF growth in H1 2018.
General Electric (GE) Transportation made a key announcement at Berlin’s InnoTrans 2018 International Trade Fair on September 19. According to the announcement, Indian Railways gave General Electric’s 4,500-horsepower diesel-electric Evolution Series prototype locomotives the green light. GE Transportation announced that Indian Railways approved the locomotive after the testing and trials were complete.
Trinity Industries (TRN) is a major rail transportation solution provider in the United States. The separation is to take place through a distribution of all of the common stock of Arcosa Inc. held by Trinity to Trinity stockholders. In December, Trinity Industries announced its intention to spin off its infrastructure-related businesses.
On September 20, premier road transporter Ryder System (R) announced the opening of a new full-service maintenance facility in Reading, Pennsylvania.
In August, Genesee & Wyoming’s (GWR) rail traffic in Europe reported a 1.8% YoY (year-over-year) decline. GWR’s same-railroad carloads in the region totaled ~84,200 railcars in the last month compared to ~85,800 units in the corresponding period last year.
On September 17, US President Donald Trump announced the imposition of 10% tariffs on ~$200.0 billion worth of Chinese imports. On September 18, China retaliated against President Trump’s action with an announcement of a tariff increase on $60.0 billion of US exports to China. The Finance Ministry of China affirmed that it would go forward with plans announced in August.
In this part, we’ll look into the FedEx (FDX) Express segment’s first quarter performance. The FedEx Express segment accounts for the lion’s share in the company’s total revenue. The segment’s revenue share was 56.2% in the first quarter’s total revenue, down 0.9% from 57.1% in Q1 2018. In Q1 2019, the vertical reported revenue of $9.2 billion compared to $8.4 billion in the first quarter of fiscal 2018, which reflects a 9.8% YoY (year-over-year) increase.
Canadian National Railway (CNI) is the number one fright rail in Canada. In week 36, the railroad’s carload traffic declined 0.9% YoY to ~62,900 railcars from ~63,400 units in the same period last year.
In August, Southwest Airlines’ (LUV) utilization declined 0.6% YoY (year-over-year) to 84.3% as traffic growth lagged capacity growth. As we saw in Part 2 of this series, traffic growth has been lagging behind capacity for the past five months. As a result, LUV’s utilization has also been declining in the same period.