Why Norfolk Southern Will 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 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 Southernfacts
Headquarters (founded) | Norfolk, Va. (1883) |
Market Cap | $19.8 billion |
Industry | Railroads |
Trailing-12-Month Revenue | $11.2 billion |
Management | Chairman/CEO Charles Moorman |
Return on Equity (average, past 3 years) | 16.3% |
Cash / Debt | $708.0 million / $8.6 billion |
Dividend Yield | 3.2% |
Competitors | Canadian National Railway CSX Union Pacific |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97%of the 1,236 members who have rated Norfolk Southern believe the stock will outperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star JPresbrown, succinctly summed up the Norfolk Southern bull case for our community:
Good, solid long-term performer selling at bargain prices. Railroads, even ones that move a lot of coal, are a crucial part of our economic structure. Here you get a 3%+ yield with a dozen years of annual increases at low valuations (P/E=11 and PE/Growth ratio is less than 1).
If you want market-thumping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Norfolk Southern may not be your top choice.
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The article Why Norfolk Southern Will Keep Chugging originally appeared on Fool.com.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Canadian National Railway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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