Why Norfolk Southern Is Poised to Keep Chugging

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railroad operator Norfolk Southern (NYSE: NSC  ) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Norfolk Southern and see what CAPS investors are saying about the stock right now.

Norfolk Southern facts

Headquarters (founded)

Norfolk, Va. (1883)

Market Cap

$23.2 billion

Industry

Railroads

Trailing-12-Month Revenue

$11.0 billion

Management

Chairman/CEO Charles Moorman IV

CFO John Rathborne

Return on Equity (average, past 3 years)

16.9%

Cash/Debt

$668.0 million / $8.8 billion

Dividend Yield

2.7%

Competitors

Canadian National Railway

CSX

Union Pacific

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,253 members who have rated Norfolk Southern believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, ValueInvestor747, succinctly summed up the Norfolk Southern bull case for our community: "The obvious risk is decreased coal demand due to a global slowdown and increased natural gas production/utilization. I think an uptick in the economy in other sectors will balance this out and at this valuation, I think [Norfolk Southern] still has room to grow."

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a perfect five-star rating, Norfolk Southern may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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Related Tickers

11/26/2014 4:03 PM
NSC $117.20 Up +0.07 +0.06%
Norfolk Southern C… CAPS Rating: ****

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