|Bid||174.35 x 1200|
|Ask||174.54 x 1100|
|Day's Range||173.42 - 176.20|
|52 Week Range||138.65 - 211.46|
|Beta (3Y Monthly)||1.23|
|PE Ratio (TTM)||16.88|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||3.76 (2.16%)|
|1y Target Est||210.21|
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Norfolk Southern (NSC) have what it takes? Let's find out.
The U.S. operations of the Class I railroads had fewer employees on their company rosters in July, continuing a downward trend that has been going on for years. In mid-July, headcount totaled 140,703 employees at U.S. Class I rail operations, according to data compiled by the Surface Transportation Board. U.S. rail headcount fell 4.6 percent from July 2018, and nearly 0.5 percent from June 2019.
Norfolk Southern's (NSC) measures to improve efficiency and streamline operations through cost-cutting are driving the company's growth.
Norfolk Southern Corporation (NYSE:NSC) shareholders might be concerned after seeing the share price drop 15% in the...
Rail traffic slumped in the U.S. and Mexico but rose in Canada when comparing volumes to the same period in 2018. Overall North American rail traffic fell 2.3 percent year-to-date to 22.6 million carloads and intermodal units. Of that total, carloads fell 2 percent to nearly 11.4 million carloads, while intermodal units fell 2.6 percent to 11.3 million intermodal containers and trailers.
Michael Farrell is senior vice president operations and mechanical. Vanessa Allen Sutherland is senior vice president government relations and chief legal officer. As senior vice president operations and mechanical, Farrell assumes responsibility for both transportation and mechanical functions.
There's not a lot of mystery at the moment when it comes to railroad operator CSX Corporation (NASDAQ:CSX). CSX news of late has been disappointing, thanks to a soft second-quarter earnings report. That report has pulled the CSX stock price down more than 10% -- and trade worries have kept the pressure on.Source: Shutterstock CSX unquestionably is a solid company -- and, at the moment, the premier railroad operator in North America. That alone creates a strong "buy the dip" argument with the CSX stock price now down 17% from its highs.But there are two key questions here. The first is whether even a 17% pullback is enough given factors outside of CSX's control. The second is whether the "buy the dip" case for CSX stock applies just as well to other, cheaper cyclical plays.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Safe Dividend Stocks for Investors to Buy Right Now From here, the answers to those questions are somewhat of a split decision. I'd wager the CSX stock price will start climbing again. But I'd bet, too, that other stocks -- maybe even some in the railroad industry -- will do better. CSX News Doesn't Change the Long-Term CaseShort-term weakness aside, CSX still has been a star performer. The CSX stock price has almost doubled since the 2016 United States presidential election. Even after the selloff, it has seen the biggest gains of the seven major railroad stocks that comprise the Dow Jones Railroads Index. The 132% increase dwarfs the 104% gains at second-place Norfolk Southern (NYSE:NSC).The company has been excellent at controlling expenses. Its 2018 operating ratio -- operating expenses divided by revenues -- was the lowest in that index, at 60.3%. The two Canadian operators, Canadian National Railway (NYSE:CNI) and Canadian Pacific Railway (NYSE:CP), come in next -- at a full point higher.To top it off, after the disappointing CSX news, the stock now is the cheapest of the group. The forward price-to-earnings ratio sits at 14.5x, slightly lower than NSC. It's possible that multiple will rise -- some analysts may still lower 2020 earnings estimates -- but at the least, CSX is valued in line with the peers it's currently outperforming.Given all these positive factors, the selloff looks like an opportunity. And it's not as if the Q2 earnings report was truly that bad. The company did cut full-year revenue guidance, but it left itself room to outperform if second-half demand strengthens. Operating income still increased 2% year-over-year. This wasn't a disaster, but some investors seemed to treat it as such. The Concerns Going ForwardThe performance of CSX stock so far raises one key and seemingly counterintuitive concern. There simply may not be much room left for improvement.Again, CSX's operating ratio is a full point better than that of every other major railroad play. It's three points better than that of Kansas City Southern (NYSE:KSU), and a full five ahead of Norfolk Southern. Is CSX that much better than the rest of its sector? Or is there more room for rivals to catch up -- and drive earnings growth in the process?That concern becomes more important amid the current cyclical fears. Operating expenses for railroads, like those of any business, can be leveraged by revenue growth. But CSX isn't seeing revenue growth coming in the second half of the year. The obvious worry is that declines may continue if the macroeconomic environment in the U.S. weakens. CSX stock already has a headwind from coal shipments, which may not come back. Its CEO, on the Q2 conference call, called the macro picture "puzzling."If the economy turns, revenue growth may head south for more than just a couple of quarters. And it may be CSX whose growth and share price lags, as rivals find more room to cut costs in the new environment. Is CSX Stock the Best Play?Those concerns are real. But at 14x-15x forward earnings, they look priced in. At this point, the declines do seem like they've gone too far.But, again, the other important question is whether CSX stock is the best play. And that's a tougher case to make. Cyclical stocks across the board generally have struggled since the beginning of last year, even though many have rallied somewhat so far this year. And many are downright cheap.Caterpillar (NYSE:CAT), for instance, trades at 10x forward earnings. Many other stocks in industries like construction, boating and automobiles look even cheaper. The risks in those sectors are higher -- but so are the rewards. If an investor has the stomach to make a contrarian bet against the current macro worries, there are options that go beyond CSX and beyond railroads.So from here, the case for CSX stock looks solid but also a bit narrow. It's for investors who are willing to take on cyclical risk -- but only a little. Long-term, the selloff is an opportunity. But the same factors that drove the selloff could open up intriguing opportunities elsewhere.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post CSX Stock Is a Good Play -- But Is It the Best One? appeared first on InvestorPlace.
It's fair to say that over the past month, CSX (NASDAQ:CSX) has come off the rails. During the past month, CSX stock sunk as the transportation giant reported miserable second-quarter numbers in mid-July.Source: Shutterstock Revenues missed expectations by a wide margin, the biggest miss since early 2016. Earnings also missed expectations by the widest margin in the past five years. More important, the full-year guide was cut sharply to well-below consensus levels.Ever since, CSX stock has dropped nearly 20%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSome contrarian investors might see this big drop in CSX as an opportunity to buy into a company that ostensibly seems very stable. But, while I love to play the contrarian, I don't think buying the dip in CSX here is the right move. * 7 Safe Dividend Stocks for Investors to Buy Right Now The reality is that CSX stock has come off the rails, and there's no reason to step in the way of this "off the rails" train just yet. The fundamentals are weak and will likely get worse before they get better. The optics are ugly and won't improve anytime soon. Meanwhile, the analyst community is growing increasingly bearish and won't provide any support; neither will the technicals, since CSX has blown through pretty much all of its important technical and psychological levels.In sum, then, there's no reason to step in the way of this sell-off just yet. Instead, the smart move here is let this sell-off play out, and then buy the dip once the fundamentals, optics, and technicals become more supportive of a rebound rally. The Rail Industry Is off the RailsThe 20% plunge in CSX stock over the past month is not unique to this specific company. Instead, it is part of a more wide-sweeping sell-off across the entire rail industry.Alongside CSX, peer rail transport companies Norfolk Southern (NYSE:NSC), Union Pacific (NYSE:UNP), and Trinity (NYSE:TRN) all reported Q2 revenue misses with sluggish volume growth. All four stocks have fallen 8% or more over the past month.Under the hood, the trade war is having a materially negative impact on the U.S. manufacturing sector. When the manufacturing sector slows, demand for rail transport slows, too, since companies are responding by transporting less volume, less frequently.When volumes drop, margins take a hit because costs aren't coming out of the system as quickly as volumes are dropping. Further, this pain may just be beginning. The trade war has escalated over the past few weeks, and as it has, it's become increasingly clear that elevated trade tensions and slowing manufacturing activity are here to stay for the foreseeable future.As such, the outlook for CSX and the entire rail industry over the next several months is sluggish volume growth alongside potential margin compression. That's a losing combo. No Reason to Buy the Dip YetAt some point, this dip in CSX becomes a compelling buying opportunity, since CSX is a stable company with healthy long term growth prospects.But, that point isn't here yet. Instead, at the current moment, there's very little reason to step in the way of this CSX stock sell-off.First, as outlined above, rail industry fundamentals aren't good now, nor do they project to improve anytime soon given trade war escalation. Second, CSX isn't a standout in this industry. Instead, they've been hit like everyone else during this rail slowdown, reporting negative revenue growth last quarter.Third, the optics here are bad. Investors quite simply do not want trade war exposure at the current moment. CSX stock has a ton of trade war exposure. As such, it is unlikely that investors will be attracted to the stock anytime soon.Further, analysts are cutting estimates and the number of Buy recommendations on the stock has dropped from 11 at the beginning of the year, to five today, according to YCharts. Thus, there isn't much support from the analyst community, either, and without that support, investors likely aren't inclined to buy the dip in bulk.Fourth, the technicals are broken. During this most recent sell-off, CSX blew through its 20-day, 50-day, and 200-day moving averages without any regard for those technical support levels. The next psychological level of support comes in at $65, where the stock has shown resilience before. Until the stock does show support there, there's little reason to believe that there's much technical support in this stock anywhere.Overall, there's simply very little reason to step in the way of this sell-off today. It increasingly appears that there's more pain ahead for CSX. Investors should only buy the dip once it appears that the worst has passed. Bottom Line on CSX StockThings are bad at CSX right now. The unfortunate reality is that things will probably get worse before they get better. That means that the recent 20% plunge in CSX stock isn't an opportunity. Instead, the stock will likely sell-off more before it bottoms.As such, now isn't the time to buy the dip in CSX stock. Rather, it's time to steer clear.As of this writing, Luke Lango did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Real Estate Investments to Ride Out the Current Storm * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk * 7 Safe Dividend Stocks for Investors to Buy Right Now The post Run Away from CSX Stock as It Comes Way off the Rails appeared first on InvestorPlace.
PrimeRevenue will relocate from 1100 Peachtree. The supply chain finance company is growing rapidly.
Public railroad stocks can be especially attractive in a growth economy. Few industries are as closely tied to economic growth as those involved in moving goods and commodities. Railroad stocks have seen some volatility over the past few years, due in part to the falling fortune of coal, which accounts for nearly 40% of America's railroad tonnage.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Norfolk Southern (NSC) have what it takes? Let's find out.
Going on 16 hours here in Cumberland. Overnight these guys got a megaphone, about 10 pizzas, and some "big boy juice". The #blackjewel coal train still hasn't left. pic.twitter.com/cZ9hsV1RDH ...
Kellogg’s quarterly payout will rise 2% to 57 cents a share, Norfolk’s will climb 9% to 94 cents, and Zions will lift its dividend 13% to 34 cents.
NORFOLK, Va. , July 26, 2019 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) today announced that its board of directors approved a 9 percent increase in its quarterly dividend on the company's ...
FEC CEO Nate Asplund discusses the potential to bring more Mexican freight traffic to Florida, why autonomous trucks aren't a threat and what precision scheduled railroading needs to get right.
It was the shot heard 'round the railroading world, so to speak. When CSX Corporation (NASDAQ:CSX) posted its disappointing second-quarter numbers a week-and-a-half ago, not only did CSX stock crash, it pulled some other -- though not all -- rail stocks like Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC) down with it.Source: Shutterstock And for good reason. The company's culling of its revenue outlook for the full year voiced what some in and outside of the industry have been quietly thinking for a while. That is, the economy is slowing down. Several reports confirm this.There's still one last bastion of hope for CSX and its peers. However, if we don't see signs of a recovery soon, in August at the latest, here's the painful reality: CSX stock and most other railroading names could become even more difficult to own.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Red Flags for CSX Stock OwnersWhen CSX CEO James Foote commented, "The present economic backdrop is one of the most puzzling I have experienced in my career," it wasn't excuse-making. The economy, seemingly healthy on the surface, is showing several cracks under the hood. * 7 Stocks to Sell This Summer Earnings Season Railroads have fallen into those cracks, since they are more vulnerable than most sectors to the weak points. As Union Pacific CEO Lance Fritz explained as part of his company's post-earnings discussion, "There [are] some unique impacts that are happening to the railroad that aren't reflective of the U.S. or global economy." Click to EnlargeThe Q2 numbers from CSX confirm it. Earnings of $1.08 per share of CSX stock were up 7% year-over-year. However, they fell short of the $1.11 analysts were modeling. Revenue of $3.08 billion missed analysts' forecasts as well. Total freight volumes fell 4%. Additionally, intermodal volumes -- accounting for 40% of the company's total volume -- dropped 10% YOY.The American Association of Railroads' data says it wasn't just CSX either. Intermodal traffic snapped back for the past couple of weeks, but somehow remains below 2018's impressive year-to-date levels. Conflicting Data a Source of ConfusionMuch of that weakness became evident by other measures in the meantime. Industrial production stagnated in June. GDP fell during the second quarter rather dramatically. Import prices fell in June by the most they've fallen in six months. New tariffs grinded away at purchases of foreign-made goods.Worse yet, many of those goods which would arrive and be transported in intermodal containers. Union Pacific CEO Lance Fritz argued the same, commenting, "We definitely see a trade impact on our grain exports."Still, not all is harrowing. The United States' unemployment rate remains near multi-year record lows, while wages continue to make their way to record highs. The average consumer appears to be doing just fine despite the impact of tariffs.It's a nuance that wasn't lost on Foote. He added to his assessment, "We are seeing a range of conflicting data points and economic indicators and regularly speak with customers who despite the recent downtime and slowdown, remain cautiously optimistic about the second half." Seasonal, Cyclical Lull Should Rebound SoonFoote's addendum may have been even more insightful than it initially appeared.Rail-shipping prices have been in decline since March, jibing with the notion that demand is slipping. Intermodal shipping rates have been particularly troubling. They slid from a peak of $151.90 (per mile) in March to June's level of $142. Based on rail transportation standards, that's a significant decline.There's a footnote that must be added to the discussion though…two of them actually.One is that intermodal prices reliably slump through June, but just as reliably recover beginning in August. Cass Information Systems plots the annual path of price changes. The company verified that shipping rates for intermodal containers have rebounded from pullbacks early in the year in each of the prior three years. Click to EnlargeSecond, intermodal shipping prices are falling, but they're falling back from an unusually strong surge in 2017 and 2018. President Trump drove this dynamic using raw willpower to create economic growth. Further price pullbacks would merely pull prices back to more sustainable levels.Though it's a backdrop that should soothe investors fearing the worst lies ahead, the scenario still poses problems. Namely, it suggests that any seasonal recovery might not start promptly in June. And even if it does, it may feel like a half-hearted rebound. Click to EnlargeIt matters simply because investors are comparing CSX to year-ago results that weren't likely to be sustained no matter how robust the economy was or is. Trade impasses aren't abating either.There's nothing in the mix that spells outright doom for the CSX stock price though; just a lot of turbulence ahead. CSX Stock Price OutlookThat turbulence of late has leaned bearishly. However, it's possible that the performance of the CSX stock price could dramatically worsen before it improves.The post-earnings pullback dragged CSX stock to a long-established support line, but no further. The bulls are trying to stage a rebound effort here. If they fail though, there's not a meaningful support level again until the late-2018 low of $58. Even then, there's no assurance any selling will abate there. The optics, if nothing else, look bad. Click to EnlargeThe chart and some important news have synced up time-wise. Investors appear content to keep the CSX stock price where it is while they wait and see.Check the American Association of Railroads and the Cass Information Systems data often between now and the next earnings report. If there's no meaningful proof of life by the end of August, it's going to be tough to stick with any long CSX positions.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post This Month Could Make or Break CSX Stock, in More Ways Than One appeared first on InvestorPlace.
U.S. rail volumes fell yet again for the week ending July 20, according to data from the Association of American Railroads. Total U.S. rail traffic fell on both a weekly and year-to-date basis compared to the same periods in 2018. On a year-to-date basis, U.S. rail volume totaled 14.98 million carloads and intermodal units, a 3.4 percent drop from a year ago.
From an operational perspective, NSC said it is focusing on finding cost savings by addressing efficiencies at serving rail yards and local operations. It is also exploring ways to address cost savings via locomotive maintenance. As part of its TOP21 plan, NSC is exploring how to expand the use of distributed power for its merchandise and automotive trains.