Norfolk Southern CorporationNYSE
Wed, Nov. 23, 5:25 PM
- Despite Canada's planned phaseout of coal-fired power plants, the country's railways expect to ship more coal, not less, driven by a rebound in the price of steel-making coal and U.S. Pres.-elect Trump’s promise to revive the industry there, Financial Post reports.
- Canadian National Railway (NYSE:CNI) and Canadian Pacific Railway (NYSE:CP) are seeing their coal volumes bounce off Q2 lows and should continue to see carloads increase for the foreseeable future.
- “In the short term, the biggest benefit we’re going to see on coal is from that met coal price,” says Raymond James transportation analyst Steve Hansen. “On a longer-term basis, depending on the coal policies in the U.S., we could see a resurgence in some of that thermal coal volume as well.”
- Major U.S. railways, which are far more dependent on coal than their Canadian competitors, have surged since Trump's election on Nov. 8 - Norfolk Southern (NYSE:NSC) has surged 10% and Union Pacific (NYSE:UNP) has jumped 12% - but some analysts think CNI and CP, each up ~5% since the election, could catch up eventually.
Wed, Nov. 2, 8:14 AM| Wed, Nov. 2, 8:14 AM | 1 Comment
Wed, Oct. 26, 12:51 PM
- Bernstein backs up its current ratings on railroad stocks after digesting the first batch of earnings reports. Aggressive cost-cutting in the sector has helped to make up for some of the volume declines in key categories.
- Canadian Pacific Railway (CP -1.6%) is kept at Outperform, with a $17 price target.
- Canadian National railway (CNI -2.6%) is maintained at Market Peform, with a $68 price target.
- CSX (CSX -0.8%) stayed at Market Perform, with a $32 price target.
- Norfolk Southern (NSC -2.2%) is backed at Market Perform, with a $96 price target.
- Previously: Norfolk Southern beats by $0.10, revenue in-line (Oct. 26)
- Previously: Canadian National Railway beats by C$0.34, beats on revenue (Oct. 25)
Wed, Oct. 26, 8:01 AM
Tue, Oct. 25, 5:30 PM
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Tue, Oct. 25, 12:59 PM
Tue, Oct. 11, 9:14 AM
- Bank of America Merrill Lynch upgrades Norfolk Southern (NYSE:NSC) to a Buy rating from Neutral.
- The investment firms sets a price target of $110 on the railroad stock.
- Norfolk has traded in a range of $64.51 to $98.75 over the last 52 weeks and closed at $95.83 yesterday.
- The dividend yield on NSC is 2.46% (full dividend analysis from SA contributor Roadmap2Retire).
Fri, Sep. 30, 4:51 AM
- A New Jersey commuter train crashed into Hoboken Terminal Thursday morning, killing one person and injuring over a hundred, renewing a focus on a mandatory anti-collision system that has been plagued by lengthy delays.
- By law, NJ Transit is required to have a positive train control system in place by the end of 2018.
- Amtrak has rolled out PTC on its network, while freight railroads have mostly been rolling out the technology a section of track at a time.
- Related tickers: UNP, CSX, NSC, CNI, CP, KSU, WAB
Fri, Jul. 29, 2:19 PM
Wed, Jul. 27, 7:33 PM
- Norfolk Southern (NYSE:NSC) says it plans to leverage a strengthening trucking market to climb out of the volume slump facing railroads, a move it hopes will drive it to Y/Y gains by Q4.
- NSC CEO Jim Squires said in today's earnings conference call that he expects a tighter trucking market to boost growth in intermodal volumes - the containers and trailers that can also be hauled by truck - in H2 of this year.
- Squires points to sequential improvement in trucking spot market rates, which show that carriers may be regaining leverage in the freight industry, although rates still remain 2%-3% behind last year; DAT pricing analyst Mark Montague says the spot market often is an early economic indicator for the truck market as a whole.
- NSC fell 2.8% in today's trade following its Q2 earnings report.
Wed, Jul. 27, 8:02 AM
Tue, Jul. 26, 5:30 PM
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Thu, Jul. 14, 2:27 PM
- The U.S. Department of Transportation proposes new rules for train cars carrying crude oil, including a requirement that carriers report to state officials the routes of trains and how much oil they would carry.
- Under the proposed new rules, rail carriers would be required to have spill plans for the maximum potential amount of oil spilled, and would have to notify state and tribal governments about the number of cars carrying crude oil that would pass through an area on a weekly basis, the route the trains would travel, and any hazardous cargo the trains would be carrying.
- Concern over potential oil train derailments has grown as the amount of oil shipped by rail has grown due to increased production in North Dakota and elsewhere; 11 cars from an oil train derailed last month in Oregon.
- Relevant tickers include CSX, UNP, NSC, KSU.
Thu, Jun. 9, 9:34 AM
- Total U.S. carload traffic for the first 22 weeks of 2016 is down 8% to 10,923,300 carloads, according to data from the Association of American Railroads. Weak demand for transport of coal and petroleum products continues to be major factor.
- Intermodal containers and trailers traffic fell 2% to 5,648,851 units.
- U.S. rail traffic volume decreased 14% to 5,274,449 carloads.
- Railroad traffic is also lower in Canada (-8%) and Mexico (-0.1%) on a YTD comparison.
- Railroad stocks: UNP, NSC, CSX, CNI, ARII, GBX, CP, KSU, CNI, WAB, TRN.
Wed, Jun. 8, 6:19 PM
- CSX, Norfolk Southern (NYSE:NSC) and Union Pacific (NYSE:UNP) posted solid gains in today's trade as lower coal stockpiles and a commodities rally led by grain and oil offer hope that the cargo slump may have hit bottom.
- CSX CFO Frank Lonegro told a Deutsche Bank conference today that farmers, who have stored grain to wait for higher prices, may begin to ship more as prices for corn, soybeans and other crops begin to climb.
- Falling coal stockpiles also are lifting investor optimism, and Lonegro says coal stockpiles have declined in the regions served by CSX, detailing 87 days of coal stocks in the northern U.S. and 113 days in the south; just two weeks ago, the CFO said there were 105 days of coal stocks in the north and 180 days in the south.
- Today, CSX closed +2%, NSC +2.6%, UNP +1.6%.
Fri, Apr. 22, 6:14 PM
- Norfolk Southern (NYSE:NSC) surged 10.5% in today's trade after easily beating Q1 earnings expectations, driven by savings from its profit improvement plan, better weather, and cost savings on labor and materials, particularly its locomotive repair program.
- However, CEO Jim Squires says Q2 will be tougher as weak commodity prices continue to take a toll; Squires tells Reuters the company is on track to achieve its $200M planned savings target this year and that it could further trim capital spending if freight volumes remain weak.
- UBS upgrades NSC to Buy from Neutral with a $102 price target, up from $84, as the strong Q1 results amid a challenging revenue environment show the company can deliver on its restructuring plan and operating improvement program.
- Credit Suisse upgrades shares to Outperform from Neutral with a $97 price target, up from $84, saying Q1 sets the stage for significant upward earnings revisions and raises confidence in management's ability to bring down costs.
- Now read Cowen hikes price target on Norfolk Southern