
Headwinds, including high fuel costs, tariff-related tensions, and lingering supply-chain disruptions, hurt the Zacks Transportation -Railroad industry. UNP, CSX and NSC are likely to stand out.
The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.
| Revenue (TTM) | $12.54B |
| Gross Profit (TTM) | $5.66B |
| EBITDA | $5.66B |
| Operating Margin | 35.30% |
| Return on Equity | 17.00% |
| Return on Assets | 5.95% |
| Revenue/Share (TTM) | $55.86 |
| Book Value | $72.36 |
| Price-to-Book | 4.62 |
| Price-to-Sales (TTM) | 6.11 |
| EV/Revenue | 7.23 |
| EV/EBITDA | 16.31 |
| Quarterly Earnings Growth (YoY) | -4.40% |
| Quarterly Revenue Growth (YoY) | 11.40% |
| Shares Outstanding | $224.61M |
| Float | $224.25M |
| % Insiders | 0.04% |
| % Institutions | 77.86% |
Volatility is currently contracting

Headwinds, including high fuel costs, tariff-related tensions, and lingering supply-chain disruptions, hurt the Zacks Transportation -Railroad industry. UNP, CSX and NSC are likely to stand out.

The smart money is split on Norfolk Southern (NYSE:NSC | NSC Price Prediction), and the divergence matters.

NSC's earnings beat, record railway revenues and rising estimates strengthen its near-term outlook, even as premium valuation remains a key trade-off.

Does Norfolk Southern (NSC) have what it takes to be a top stock pick for momentum investors? Let's find out.

Norfolk Southern (NSC) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.

OMAHA, Neb. & ATLANTA--(BUSINESS WIRE)--Union Pacific (NYSE: UNP) and Norfolk Southern (NYSE: NSC) today enhanced their merger application by offering customer protections that go beyond those provided in any prior rail merger. The new commitments are provided with the supplemental information requested by the Surface Transportation Board (STB) when it accepted the companies' merger application as complete on May 28, 2026. “We are more confident than ever that creating America's first transcont.

Norfolk Southern Corporation is fundamentally strong but currently overvalued, trading at a premium P/E above historical norms. Recent NSC operational gains were largely driven by external energy market shocks, not sustainable core improvements; GAAP net income and FCF declined despite record revenues. Heavy reliance on adjusted earnings masks recurring costs; GAAP metrics reveal persistent margin compression and profit headwinds.

Norfolk Southern NYSE: NSC reported a stronger-than-expected second quarter, with executives pointing to a sharp rebound in freight volumes, higher energy-related demand and improving intermodal trends, while also acknowledging service pressures caused by the rapid increase in traffic.

NSC's Q2 earnings beat estimates as record revenues, volume growth and stronger pricing offset higher fuel costs and weaker efficiency.

While the top- and bottom-line numbers for Norfolk Southern (NSC) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
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