Why Norfolk Southern Is Poised to Keep Chugging

Brian D. Pacampara, The Motley Fool
Updated

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

$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.

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The article Why Norfolk Southern Is Poised to Keep Chugging originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 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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