Norfolk Southern Corp.

  • The Single Biggest Risk Facing Railroads Today

    By Ted Cooper - August 6, 2013 | Tickers: CNI, CSX, NSC

    Coal is the single most important commodity to the U.S. railroad industry. It accounts for nearly one-quarter of revenue among U.S. railroads, more than any other single product.

    Unfortunately, coal is in a secular decline. It now accounts for about 38% of electricity generation in the U.S., down from nearly 50% just six years ago. New discoveries and the widespread use of hydraulic fracturing to economically produce more »

  • 6 Reasons to Invest in This Railroad

    By William Bias - August 5, 2013 | Tickers: CSX, KSU, NSC, UNP

    When investing in a publicly traded business you want that company to maintain its ability to generate and grow free cash flow over the long term. Western railroader Union Pacific (NYSE: UNP) possesses the qualities to make that happen.

    Barriers to entry

    If new competitors want to enter the railroad arena they would need to spend billions of dollars to build infrastructure such as rail bridges and tunnels, not to more »

  • This Transportation Business Is a Good Pick Now

    By Anh HOANG - July 29, 2013 | Tickers: CSX, NSC, UNP

    Recently, Fool contributor Michael Olsen picked CSX (NYSE: CSX) for his Real Money portfolio. In the past five years, CSX has had sluggish performance, gaining only 19.77%, much lower than the S&P 500’s return of more than 37%. Joel Greenblatt and Ken Fisher initiated long positions in the company in the first quarter, while Ray Dalio and Bill Gates sold out their positions. Should we invest in more »

  • Weren't Not in Kansas Anymore

    By Marshall Hargrave - July 26, 2013 | Tickers: KSU, NSC, UNP

    Although its based in Kansas City, Mo., the company is far more than just the north to south rail operator connecting Kansas City, Mo. and Port Arthur, Texas that was founded in 1887. Kansas City Southern (NYSE: KSU) now operates some 6,600 miles of railroad and has investments in the U.S., Mexico, and Panama.

    Its network helps connect Mexico, the Southeast and Southwest U.S. This includes its more »

  • Should You Make a Bakken Oil Play With the Railroad Companies?

    By Paul Sangrey - July 25, 2013 | Tickers: BRK-B, CSX, KSU, NSC, UNP

    The Bakken play produces vast amounts of gas and oil that need to be transported, either by pipeline or railroad. Thus, as gas production expands, railroads can take advantage of the increased demand for their services. But at the same time, it causes people to use less coal, and hence, less of that needs to be shipped. As these countervailing forces  play tug-of-war, the railroads' profitability -- and hence,  the potential more »

  • 2 Reasons Why Railroads Still Look Attractive

    By Varun Chandan - July 25, 2013 | Tickers: CSX, NSC, UNP

    On Tuesday, railroad company Norfolk Southern (NYSE: NSC) posted weaker-than-expected second-quarter earnings, as weak demand for coal hurt its top line. Indeed, that sharp decline in demand has also been a concern for other railroad companies such as CSX (NYSE: CSX) and Union Pacific (NYSE: UNP), which reported quarterly results last week. However, railroad stocks still look attractive for two major reasons; improving auto sales and production, and rising crude more »

  • Does a Dividend Increase Make This Railroad a Buy?

    By Bob Ciura - July 25, 2013 | Tickers: CP, NSC, UNP

    Railroads are often seen as a bellwether for the broader economy because of the amount of retail and manufactured goods they transport across the nation. Norfolk Southern (NYSE: NSC) is one of the most well known railroads in the United States, operating approximately 20,000 route miles in 22 states.

    The railroad industry counts Warren Buffett, one of the world’s most famous investors of all time, as a fan more »

  • Coal Power Generation to Increase Railroad Earnings

    By Hussain Asghar - July 23, 2013 | Tickers: CSX, NSC, UNP

    An improvement in several economic indicators over the past two months suggests that the US economy is back on track. The improvement in almost all economic indicators in the previous month spurred my interest in the transportation sector, a segment heavily dependent on economic activity.

    Among the various modes of transportation available, I would focus on the cheapest mode available to the consumers: railroad transportation. The recent warning signs to more »

  • Sunny Days Still Ahead For Major Rail Firms

    By Phillip Woolgar - July 16, 2013 | Tickers: CSX, NSC, UNP

    American rail firms have consistently been increasing revenue, and growth looks to continue long into the future. This is largely because rail is a much cheaper way to transport when compared to trucks. Even though rail delivery is usually slower than that of trucks, the savings are hard for businesses to ignore. 

    As the U.S. economy continues to grow, so will the profits at these large-cap firms. And even more »

  • Profiting From Rising Coal Demand

    By Piyush Arora - July 15, 2013 | Tickers: ACI, NSC, BTU

    With the abundant supply and cheaply priced natural gas in the U.S, the clean fuel has successfully replaced coal in many industries. While coal prices have declined by nearly 25% over the last year, the rising domestic gas demand and increasing liquefied natural gas (LNG) exports have pushed up gas prices by nearly 30%. As a result, electric utilities now prefer coal over natural gas due to its low more »

  • This Railroad Company Is Chugging Along Nicely

    By Daniel James - July 12, 2013 | Tickers: CSX, KSU, NSC

    With highways getting increasingly congested worldwide, especially in terms of freight transport, the good old railroad network appears to be becoming an increasingly attractive option to move goods around once again. Some of the companies in the industry are doing a good job of growing earnings as a result of this increased volume. With a fairly low valuation, a nice dividend yield and strong earnings, CSX (NYSE: CSX) in particular more »

  • Three Stocks to Consider in the Railroad Business

    By Damian Illia - July 9, 2013 | Tickers: CNI, CSX, NSC

    With rumors of a possible Berkshire-owned BNSF Railway expansion, let's look at other major railroad companies with potential for future partnerships. BNSF operates in the western US. So, we'll look at one company in Canada, and two East Coast leaders. The rail companies are: Canadian National Railway (NYSE: CNI), CSX (NYSE: CSX), and Norfolk Southern (NYSE: NSC).

    International market

    Canadian National maintains a small economic moat because it more »

  • 5 Hot Dividend Picks From Income-Focused Mutual Funds (Part I)

    By Meena Krishnamsetty - July 2, 2013 | Tickers: NSC, WAG, WHR

    Income mutual funds focused on dividend growth can be good sources of ideas about what’s hot and what’s not in the dividend growth-focused investing of the professionally managed money. Dividend growth investing has been especially appealing for income investors in the low-yield environment, in addition to this particular market-beating strategy.

    This has been the case because dividend yields complemented with dividend growth rates often well exceed the rate more »

  • All Aboard the Oil Train: Which Company is Best Positioned to Capitalize on Surging U.S. Oil Production?

    By Brendan O'Boyle - July 2, 2013 | Tickers: CP, NSC, TRN, UNP

    Oil production in the United States has moved sharply higher in recent years due to high crude oil prices and technological advances in the extraction of petroleum. Much of this new capacity resides in states such as: North Dakota, Montana, Pennsylvania and Ohio; requiring land transportation to deliver the crude oil to refining facilities located elsewhere. While pipelines are one method to transport oil, another method is rail with the more »

  • What Does Billionaire Ken Griffin See in This Transportation Stock?

    By Meena Krishnamsetty - June 28, 2013 | Tickers: CSX, GWR, KSU, NSC, UNP

    In May, billionaire Ken Griffin’s Citadel Investment Group filed its 13F for the first quarter of 2013, disclosing many of its long positions in U.S. stocks as of the end of March. We track 13Fs from hundreds of hedge funds, primarily as part of our work developing investment strategies (we have found, for example, that the most popular small cap stocks among hedge funds earn an average excess more »

  • New Stock Plays from First Eagle Investment Management

    By Meena Krishnamsetty - June 27, 2013 | Tickers: BUD, NOV, NSC, QCOM, TGT

    Now that first quarter earnings season has died down, analysts get the opportunity to get a closer look at many hedge funds’ 13F filings, which disclose institutional managers’ positions quarter by quarter. First Eagle Investment Management recently released its 13F outlining its holdings from Q1 2013. We use this information as the basis of our small-cap portfolio strategy, a system that has returned over 38% since we made it public more »

  • Why This Railroad Is a Compelling Buy

    By Bob Ciura - June 26, 2013 | Tickers: CNI, NSC, UNP

    Railroads are often seen as a bellwether for the broader economy because of the amount of retail and manufactured goods they transport across the nation. Norfolk Southern (NYSE: NSC) is one of the biggest railroads in the United States, with a $23 billion market capitalization. In addition, Norfolk Southern operates approximately 20,000 route miles in 22 states and serves every major container port in the eastern US.

    The railroad more »

  • This Company Will Grow its Profits in the Recovery

    By Matthew Frankel - June 21, 2013 | Tickers: CSX, NSC, UNP

    Lately, I have been exploring companies that should benefit the most from the continuing economic recovery and the various activities that go along with it. Examples of what will occur if the recovery continues include increased manufacturing and construction activity, and a sector that will benefit greatly from both is the transportation industry, specifically railroads. Having lived in the Southeast for my entire adult life, the railroad company whose operations more »

  • 3 Railroads That Could Continue To Outperform

    By Piyush Arora - June 13, 2013 | Tickers: CNI, CP, NSC

    As natural gas continues to replace coal, many North American railroads have begun struggling to retain their growth momentum. Even the upcoming coal gasification plants in the continent won’t be operational until 2018, which suggests that the domestic coal demand could continue to decline. However, intermodal transportation is picking up rapidly, and North American railroads with mature intermodal routes are coming out unscathed.

    Company #1

    Norfolk Southern (NYSE: NSCmore »)

  • Is It a Good Idea to Invest in U.S. Railroads?

    By Joseph Harry - June 12, 2013 | Tickers: CSX, KSU, NSC, UNP

    Why invest in U.S. railroads? They operate in a seller's market and enjoy strong pricing power, for one. Two, they have geographically strong moats, operating in a capital-intensive industry with high barriers of entry. And lastly, they are well positioned to benefit from the North American oil and gas boom.

    Even though it can be up to five times as expensive to transport crude by train, a lack more »

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