Norfolk Stock Performance

NSC
 Stock
  

USD 248.55  7.95  3.10%   

Norfolk Southern has a performance score of 5 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 1.048, which conveys a somewhat significant risk relative to the market. Let's try to break down what Norfolk's beta means in this case. Norfolk Southern returns are very sensitive to returns on the market. As the market goes up or down, Norfolk Southern is expected to follow. Although it is important to respect Norfolk Southern price patterns, it is better to be realistic regarding the information on the equity's historical price patterns. The philosophy towards estimating future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Norfolk Southern technical indicators, you can presently evaluate if the expected return of 0.14% will be sustainable into the future. Norfolk Southern right now secures a risk of 1.96%. Please verify Norfolk Southern information ratio, value at risk, as well as the relationship between the Value At Risk and expected short fall to decide if Norfolk Southern will be following its current price movements.
  
Norfolk Performance
5 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Norfolk Southern are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, Norfolk Southern may actually be approaching a critical reversion point that can send shares even higher in January 2023. ...more

Structure and Payout Changes

Forward Annual Dividend Yield
0.02
Payout Ratio
0.36
Last Split Factor
3:1
Forward Annual Dividend Rate
4.96
Dividend Date
2022-11-21
Ex Dividend Date
2022-11-03

Norfolk Price Channel

Begin Period Cash Flow1115000000.00
DescriptionNorfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United
Total Cashflows From Investing Activities-1222000000.00

Norfolk Southern Relative Risk vs. Return Landscape

If you would invest  23,794  in Norfolk Southern on September 2, 2022 and sell it today you would earn a total of  1,856  from holding Norfolk Southern or generate 7.8% return on investment over 90 days. Norfolk Southern is generating 0.1402% of daily returns assuming volatility of 1.9639% on return distribution over 90 days investment horizon. In other words, 17% of stocks are less volatile than Norfolk, and above 98% of all equities are expected to generate higher returns over the next 90 days.
  Daily Expected Return (%)  
       Risk (%)  
Considering the 90-day investment horizon Norfolk Southern is expected to generate 1.29 times more return on investment than the market. However, the company is 1.29 times more volatile than its market benchmark. It trades about 0.07 of its potential returns per unit of risk. The NYSE Composite is currently generating roughly 0.08 per unit of risk.

Norfolk Southern Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Norfolk Southern's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Norfolk Southern, and traders can use it to determine the average amount a Norfolk Southern's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = 0.0714

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Estimated Market Risk
 1.96
  actual daily
 
 17 %
of total potential
 
1717
Expected Return
 0.14
  actual daily
 
 2 %
of total potential
 
22
Risk-Adjusted Return
 0.07
  actual daily
 
 5 %
of total potential
 
55
Based on monthly moving average Norfolk Southern is performing at about 5% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Norfolk Southern by adding it to a well-diversified portfolio.

About Norfolk Southern Performance

To evaluate Norfolk Southern Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Norfolk Southern generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Norfolk Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Norfolk Southern market performance in a much more refined way. The Macroaxis performance score is an integer between 0 and 100 that represents Norfolk's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Return on Investment 16.18  17.42 
Return on Average Assets 7.86  7.05 
Return on Average Equity 21.14  18.80 
Return on Invested Capital 0.06  0.07 
Return on Sales 0.37  0.38 

Things to note about Norfolk Southern

Checking the ongoing alerts about Norfolk Southern for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Norfolk Southern help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Norfolk Southern Alerts

Equity Alerts and Improvement Suggestions

The company has 13.29 B in debt with debt to equity (D/E) ratio of 1.2, which is OK given its current industry classification. Norfolk Southern has a current ratio of 0.95, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Norfolk Southern until it has trouble settling it off, either with new capital or with free cash flow. So, Norfolk Southern's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Norfolk Southern sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Norfolk to invest in growth at high rates of return. When we think about Norfolk Southern's use of debt, we should always consider it together with cash and equity.
Over 77.0% of Norfolk Southern shares are owned by institutional investors
On 21st of November 2022 Norfolk Southern paid $ 1.24 per share dividend to its current shareholders
Latest headline from news.google.com: U.S. House to vote to block rail strike despite labor objections - Reuters.com
Additionally, see Correlation Analysis. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

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Is Norfolk Southern's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Norfolk Southern. If investors know Norfolk will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Norfolk Southern listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.34
Market Capitalization
59.4 B
Quarterly Revenue Growth YOY
0.17
Return On Assets
0.0783
Return On Equity
0.24
The market value of Norfolk Southern is measured differently than its book value, which is the value of Norfolk that is recorded on the company's balance sheet. Investors also form their own opinion of Norfolk Southern's value that differs from its market value or its book value, called intrinsic value, which is Norfolk Southern's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Norfolk Southern's market value can be influenced by many factors that don't directly affect Norfolk Southern's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Norfolk Southern's value and its price as these two are different measures arrived at by different means. Investors typically determine Norfolk Southern value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Norfolk Southern's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.