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Norfolk Southern Corporation(NSC)

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EXPLORE ADVISORIES AND THEIR HISTORY
QUALITY SIGNAL RECENCY
2-STAR RATING
WEAK BUY
BUY for 11 days
PROFIT SINCE LAST BUY
-2.04% ▼
LAST CLOSE
$325.82
11/09/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
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Upturn Stock price based on last close iconStock price based on last close
Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Advisory Performance History (Simulated)Advisory Performance History info

Simulated performance—not actual client returns. Excludes advisory subscription fees, trading commissions, and taxes, which would reduce returns. Results depend on calculation assumptions and do not guarantee future outcomes. See Disclosures for full methodology, assumptions, and limitations.

Upturn Advisory & Investor View for NSC

11/09/2026: NSC (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Norfolk Southern Corporation is a major, capital-intensive Class I railroad that serves a vast network across the eastern United States. The company benefits from a solid competitive moat provided by its extensive infrastructure and critical role in industrial logistics. Its growth story is centered on optimizing operations and expanding its intermodal capacity, although it remains sensitive to cyclical freight volumes and energy demand. Primary risks include significant regulatory oversight, intense competition from the trucking sector, and managing high operational costs. The stock is typically well-suited for long-term investors focused on dividend stability and value within the industrial transportation sector, while observers should monitor ongoing safety and operational efficiency initiatives.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company is a mature, capital-intensive infrastructure player rather than a high-growth technology stock.
Momentum investorMixed fitMomentum may be present during periods of economic expansion, but is generally dependent on broader market cycles.
Value investorStrong fitThe stock often appeals to value investors seeking stable, established businesses with significant tangible assets.
Dividend investorStrong fitNorfolk Southern has a consistent history of dividend payments, making it a suitable candidate for income-focused portfolios.
Low-risk investorMixed fitWhile established, the company faces operational, regulatory, and cyclical economic risks typical of the transportation sector.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMediumThe stock price is subject to fluctuations based on industrial demand, energy prices, and overall economic health.
Valuation riskMediumRailroad valuations are often tied to long-term interest rates and growth expectations in industrial production.
Competition risk (Trucking and Rail)Medium / highCompetition from the trucking industry for short-haul freight and other Class I railroads for long-haul routes remains intense.
Business qualityStrongThe company operates a critical, high-barrier-to-entry infrastructure network with limited direct competition.
Dividend incomeLowDividend payouts are generally stable, though they can be impacted by significant capital expenditure requirements.
Execution riskMedium / highSuccessfully managing operational efficiency while maintaining safety standards is critical to profitability.

Price Behavior

Strong Uptrend
PRICE PATH

Strong Uptrend

The stock has maintained a strong upward price trend across the last three quarters.

Smooth
PRICE STABILITY

Smooth

The stock has moved along a generally orderly path with only modest fluctuations.

Analysis of Past Performance

Type Stock
Historic Profit 14.2%
Avg. Invested days 52
Today’s Advisory WEAK BUY
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/09/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
NSC receives a 4-star rating, supported by solid unit economics, solid company fundamentals, solid quantitative characteristics, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
NSC has solid overall fundamentals (4 stars), with solid financial health, moderate growth momentum, and solid ownership. In FY2025 versus FY2024, moderate earnings growth (+9.6%) and strong cash generation (FCF margin 17.7%) are partially offset by moderate revenue growth (+0.5%), very low insider ownership of 0.05%.

Financial Health Rating

★★★★★
NSC's financial health is supported by strong cash strength, including free-cash-flow generation of $2.2B (17.7% of revenue). Liquidity is moderate (3 stars), which helps explain the 4-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is NSC's strongest growth driver at +29.1% FY2025 versus FY2024 (solid, 4 stars). Revenue growth (+0.5%, moderate) and earnings growth (+9.6%, moderate) are also constructive, though not equally high across every growth measure.

Ownership

★★★★★
Institutional ownership is 77.6% and approximately 99.8% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership is only 0.05%, which materially reduces the ownership score.

Top 5 Institutional Investors

BlackRock Inc 7.12%
Vanguard Capital Management, LLC 6.53%
State Street Corp 4.56%
Vanguard Portfolio Management, LLC 3.21%
Millennium Management LLC 2.32%

Unit Economics (Per $1K Revenue)

★★★★★
NSC generates approximately $424 of gross profit, $329 of operating income, and $177 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Solid margins and moderate cash conversion support the rating, although capital efficiency remains moderate.

Economic Dimensions

★★★★★
Effective Tax Rate: 21.61%

Quantitative Style Profile

★★★★★
NSC has a high-quality, large-cap, liquid profile. Weak momentum is the primary drawback, while valuation that is moderately attractive rather than deeply discounted.

Style Classification

Quality Focused

Quality TiltLarge / Mega Cap StabilityHighly Liquid / Institution-Friendly

Key Highlights

Company Size Large-Cap Stock
Market Capitalization 71.86B USD
Price to earnings Ratio 26.82
1Y Target Price 360.61
Price to earnings Ratio 26.82
1Y Target Price 360.61
Volume (30-day avg) 913.4K shares
Beta 1.18
52 Weeks Range 273.18 - 355.72
Updated Date 11/08/2026
52 Weeks Range 273.18 - 355.72
Updated Date 11/08/2026
Dividends yield (FY) 1.65%
Basic EPS (TTM) 11.93

How Company Makes Money

Business areaWhat it includesRetail investor read
MerchandiseChemicals, metals, automotive, and agricultural freight.This is the core, diverse business segment that drives steady, volume-based revenue.
IntermodalContainerized freight transport.This area is key to capturing global trade growth and domestic e-commerce volume.
Geography (Eastern US)Network covering 22 states and the District of Columbia.The company’s revenue is geographically concentrated in the industrial and populated East, making it sensitive to regional economic performance.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date 2026-10-22
When Before Market
Estimate 3.48
Actual 3.62

Profitability

Profit Margin 20.71%
Operating Margin (TTM) 35.42%

Management Effectiveness

Return on Assets (TTM) 6.03%
Return on Equity (TTM) 16.84%

Valuation

Trailing PE 26.82
Forward PE 22.57
Enterprise Value 86.88B
Price to Sales(TTM) 5.54
Enterprise Value 86.88B
Price to Sales(TTM) 5.54
Enterprise Value to Revenue 6.7
Enterprise Value to EBITDA 15.42
Shares Outstanding 224.62M
Shares Floating 224.25M
Shares Outstanding 224.62M
Shares Floating 224.25M
Percent Insiders 0.05
Percent Institutions 77.6

Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

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