|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||131.85 - 136.04|
|52 Week Range||109.27 - 157.15|
|PE Ratio (TTM)||7.10|
|Forward Dividend & Yield||2.88 (2.15%)|
|1y Target Est||N/A|
President Trump has threatened in the past to scrap the NAFTA deal unless the whole agreement is thoroughly reviewed in the present light. The Association of American Railroads is an alliance of major US railroads across North America. On NAFTA, it had written to the US President calling for constructive negotiations and maintaining in place elements that proved beneficial for the US.
This could indicate that investors who seek to profit from falling equity prices are not currently targeting NSC. Over the last one-month, outflows of investor capital in ETFs holding NSC totaled $3.66 billion.
Trump’s pro-growth agenda in the form of a 14% cut in corporate tax and deregulation have proved major turning points for the US economy. The corporate tax cuts from 35% to 21% could result in huge savings for US companies including railroads (IYJ). Note that US railroads such as Norfolk Southern (NSC) and CSX (CSX) receive almost 100% of their revenue from the United States. Thus, a 14% reduction in the corporate tax rate would significantly boost their cash flows.
US Class I railroads’ (XLI) intermodal segments compete directly with trucking (WERN) companies. In the last two years, shippers have been shying away from the rail intermodal for their shipping needs. During those times, shippers prefer trucking companies for medium to long-haul freight services.
General Electric Co's transportation unit said on Tuesday several North American railroads have placed orders this year for 225 refurbished locomotives, although it declined to say which railroads ordered the equipment. GE also said in a statement that it will deliver 80 modernized locomotives previously ordered by Canadian Pacific railway Co and 100 to Norfolk Southern Corp in 2018. General Electric Chief Executive Officer John Flannery said in November that GE would exit at least $20 billion in operations to improve its financial performance.
The top U.S. rail regulator has asked major railroads for information on service levels before meeting disgruntled shippers and other customers over complaints about service delays and higher costs. In letters to the chief executive officers of the railroads dated March 16 that were posted on the U.S. Surface Transportation Board's (STB) website on Monday, the regulator requested locomotive and employee numbers, and asked whether the railroads have sufficient numbers of each to meet demand.
The Zacks Analyst Blog Highlights: Union Pacific, Kansas City, Canadian Pacific, CSX and Norfolk
The top U.S. railways regulator plans to hold a series of meetings with disgruntled shippers and other customers starting next month, after fresh complaints over service delays and higher costs from automotive and grain lobby groups. The Surface Transportation Board's last major public hearing was in October and focused on service issues at the CSX Corp railroad. Reuters reported two weeks ago that a drive to cut costs and boost margins at CSX, Norfolk Southern Corp, and Union Pacific Corp was hurting some of America's largest rail customers.
The turnaround of Freight Railroad industry can be attributed to an improvement in the coal-related scenario and a boost in intermodal volume.
With coal and intermodal growth on an upswing, railroads are expected to perform well in 2018. The new tax law further adds to a positive view.
This could indicate that investors who seek to profit from falling equity prices are not currently targeting NSC. Over the last one-month, outflows of investor capital in ETFs holding NSC totaled $12.94 billion.
Norfolk Southern's (NSC) cost-reduction efforts to drive the bottom line are impressive. The company's shareholder-friendly measures also raise optimism about the stock.