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Norfolk Southern Corporation (NYSE:NSC)’s stock reached a significant milestone, hitting a 52-week high of $288.16. According to InvestingPro data, the transportation giant, with a market capitalization of $64.4 billion, is currently trading slightly above its Fair Value. This marks a notable achievement for the transportation giant, reflecting a robust performance over the past year. The stock’s ascent to this new peak underscores a positive trend, with the company’s shares experiencing a 19.2% increase over the last 12 months. The company has maintained dividend payments for 44 consecutive years, demonstrating long-term financial stability, while trading at a P/E ratio of 19.2. This upward trajectory highlights investor confidence and the company’s resilience in navigating market challenges. As Norfolk Southern continues to expand its operations and optimize its services, its stock performance remains a focal point for market analysts and investors alike. InvestingPro subscribers can access 12 additional key insights and a comprehensive analysis of Norfolk Southern’s financial health and market position.
In other recent news, Norfolk Southern’s proposed $85 billion acquisition by Union Pacific (NYSE:UNP) has faced criticism from Senate Democratic Leader Chuck Schumer, who described it as a "hostile takeover of America’s infrastructure." This acquisition would create the first coast-to-coast freight rail operator in the United States. Norfolk Southern’s second-quarter earnings reported adjusted earnings per share of $3.29, slightly below the $3.31 consensus estimate. The company has also revised its full-year revenue growth target to 2%-3% year-over-year, down from a previous forecast of 3%. Benchmark has downgraded Norfolk Southern’s stock from Buy to Hold, citing merger uncertainty. Similarly, JPMorgan downgraded the stock from Overweight to Neutral, although it raised its price target to $288.00. Evercore ISI also downgraded Norfolk Southern from Outperform to In Line, noting limited upside potential as shares trade within 13% of the deal price. Meanwhile, Fitch Ratings placed Union Pacific on Rating Watch Positive, suggesting that the merger could enhance its business model through increased geographical diversification and network efficiencies.
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