Norfolk Southern stock reaches all-time high at 300.98 USD

Norfolk Southern Corporation’s stock has reached an all-time high, hitting 300.98 USD, with InvestingPro analysis indicating the stock is slightly overvalued at current levels. The company, now valued at $66.89 billion, has demonstrated impressive gross profit margins of nearly 50%. This milestone reflects the company’s robust performance over the past year, marked by a significant 22.72% increase in its stock value, with an even stronger six-month return of 26.58%. The surge underscores investor confidence in Norfolk Southern’s strategic initiatives and operational efficiency, supported by its 44-year track record of consistent dividend payments. As the company continues to navigate the complexities of the transportation industry, this record high serves as a testament to its resilience and growth potential. Discover 13 additional key insights about Norfolk Southern with a subscription to InvestingPro.

In other recent news, Norfolk Southern reported second-quarter adjusted earnings per share of $3.29, which fell short of the consensus estimate of $3.31. The company also revised its full-year revenue growth target to 2%-3% year-over-year, down from the previous 3% forecast, and adjusted its operating ratio improvement expectations to 100-150 basis points from 150 basis points. In merger news, Union Pacific’s $85 billion acquisition bid for Norfolk Southern has faced criticism from Senate Democratic Leader Chuck Schumer, who described it as a "hostile takeover of America’s infrastructure." Meanwhile, Norfolk Southern’s stock has been downgraded by Benchmark to Hold and by JPMorgan to Neutral, both citing merger uncertainty as a key factor. Despite these downgrades, Bernstein raised its price target for Norfolk Southern to $347 from $339, maintaining an Outperform rating. Additionally, the Trump administration has removed Surface Transportation Board member Robert Primus, with a White House spokesperson stating the dismissal was due to misalignment with the President’s agenda. These developments reflect ongoing changes and challenges for Norfolk Southern in the transportation sector.

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