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Morning Alert: Norfolk Southern keeps sliding: down 3.3% in 3 days 17 October 2017 11:14 EDT

NEWS BITES - NORTH AMERICA

Norfolk Southern Corp. (NYSE:NSC) extended its slide on Tuesday, shedding an additional 55.0c (or 0.4%) to trade at $US129.25. Trading volume was 1.9 times average so far today. The shares have fallen $US4.44 (or 3.3%) over the past three trading days.

SECTION 1: The past week

Current indications of bearish signals that support the trend in the unusual trading

1.1 At a glance

Weekly: Norfolk Southern decreases 0.8% on weak volume October 16, 2017 16:00 EDT

Norfolk Southern Corp. (NYSE:NSC), NYSE's 2nd largest Railroads company by market cap, has decreased 99.0c (or 0.8%) in the past week to close at $US129.80. Compared with the S&P 500 Index which rose 12.9 points (or 0.5%) in the week, this represented a relative price change of -1.3%. The volume was 0.6 times average trading per week of 11.2 million shares. The stock fell for a second week on Monday bringing its a two-week fall to $US1.84 or 1.4%. In the past week the market cap has declined $US285.3 million.

1.2 5-day Recap

Norfolk Southern underperformed the S&P 500 index in 3 out of 5 days.

DayHeadlineClose price [USD]Price change %Relative change %Comment
MondayNorfolk Southern down 2.9% in 2 days129.8-1.4-1.6
TuesdayNorfolk Southern put call ratio increases 142.2%, stock decreases130.0-0.6-0.7

Note

DayHeadlineClose price [USD]Price change %Relative change %Comment
FridayNorfolk Southern hits year-high 11th time in one month131.65-1.5-1.6Steepest Fall
ThursdayNorfolk Southern up 2.8% in 2 days133.691.71.8Top Rise
WednesdayNorfolk Southern outperforms 90% of the market131.491.10.9

SECTION 2: Technical indicators

Bearish:

The price decreased 0.6% in the last week.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Parity:

Price/Earnings of 21.2 [20.2]

Undervaluation:

Price/Sales of 3.6 [4.0]

Price to Book of 3 [4.4]

Dividend yield of 1.9% [1.4%]

Overvaluation:

Return on Equity 13.4% [19.1%]

Return on Assets 4.8% [7.0%]

Return on Capital Employed 9.7% [12.1%]

Note

The stock has outperformed 69% of the NYSE market over the past 6 months.

Bullish:

The positive 1.4 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal (12-day minus 26-day Exponential Moving Averages). Both the 12-day and the 26-day EMA are rising - another bullish signal. In the past week, the stock's MACD has been positive every day, a reinforcing bullish signal.

The 3.9% discount to 12-month high of $US134.52 against the 43.7% premium to 12-month low of $US89.95 suggests the stock continues to push for new highs.

In the last three months the stock has hit a new 52-week high thirteen times, pointing to a significant uptrend.

The present value of USD1,000 invested one year ago is $US1,391, including a capital gain of $US363 and dividend reinvested of $US28. The total return to shareholders for 1 year is 39.1%.

SECTION 3: Ranking

DescriptionValueRank In Market
MCap $US billion37.2In Top 7%
52-week Range (in $US)90.0-134.5
1-month Range (in $US)126.9-134.5
Williams %R-89.6Bullish

SECTION 4: Earnings

FY2016 Annual Report: Norfolk Southern Net Profit up 7.2%

Norfolk Southern (NYSE:NSC) reported net profit for the year-ended 31 December 2016 of $US1.7b, up 7.2% from $US1.6b in the previous year.

Major changes compared with previous year:

Favourable Changes:

- Net profit up 7.2% from $US1.6b to $US1.7b

- EPS up 10.2% from $US5.1 to $US5.62

- EBIT Margin up from 28.4% to 31.8%

- Interest cover up 2% from 5.5 to 5.6

- EBIT to total assets up from 8.7% to 9.0%

- Sales and marketing expenses to Sales down from 45.9% to 42.9%

- Profit before tax to Sales up from 23.2% to 26.1%

- Cost of Goods Sold to Sales down from 16.7% to 15.7%

- Long-term investments to Total Assets up from 7.5% to 8%

- Net tangible assets per share up 4.6% from $US40.37 to $US42.22

Unfavourable Changes:

- Total revenue down 6.2% from $US10.6b to $US10.0b

- Current ratio down 13.3% from 1.1 to 1.0

- Total current assets to Total Assets down from 7.4% to 6.6%

- Current Debtors to Total Assets down from 2.8% to 2.7%

- Total Liabilities to EBITDA of 5.4 compares unfavourably with the Joseph Piotroski benchmark of less than 5. - Total Liabilities to Operating Cash Flow of 7.4 compares unfavourably with the Joseph Piotroski benchmark of less than 4.

Note:

- Total revenue to total assets steady at 0.3

- Depreciation to Sales up from 10% to 10.4%

- Tax expenses to Sales up from 8.4% to 9.2%

- Debt to Equity steady at 0.8

- Retained earnings to total assets steady at 29.9%

- Total non-current assets to Total Assets up from 92.6% to 93.4%

- Fixed Assets to Total Assets up from 84.9% to 85.3%

SECTION 5: Recent Reported Buying

September 13: Norfolk Southern director awarded Restricted Stock Units

Norfolk Southern (NYSE:NSC) director Erskine B. Bowles, has been awarded Restricted Stock Units on 57 shares at a transaction price of $US125.23. The transaction date was September 11. The shares last traded at $US126.24.

September 13: Norfolk Southern director awarded Restricted Stock Units

Norfolk Southern (NYSE:NSC) director Steven F. Leer, has been awarded Restricted Stock Units on 340 shares at a transaction price of $US125.23. The transaction date was September 11. The shares last traded at $US126.24.

September 13: Norfolk Southern director awarded Restricted Stock Units

Norfolk Southern (NYSE:NSC) director Wesley G. Bush, has been awarded Restricted Stock Units on 46 shares at a transaction price of $US125.23. The transaction date was September 11. The shares last traded at $US126.24.

September 13: Norfolk Southern director awarded Restricted Stock Units

Norfolk Southern (NYSE:NSC) director Daniel A. Carp, has been awarded Restricted Stock Units on 170 shares at a transaction price of $US125.23. The transaction date was September 11. The shares last traded at $US126.24.

SECTION 6: Recent News of Norfolk Southern

October 03: Norfolk Southern to hold third-quarter 2017 earnings conference call Oct. 25

NORFOLK, Va., Oct. 3, 2017 -- Norfolk Southern Corporation (NYSE:NSC) will announce its third-quarter financial results during a conference call and live internet webcast at 8:45 a.m. EDT on Wednesday, Oct. 25, 2017. Quarterly earnings results will be released at 8 a.m. EDT, and a press release will be posted at www.nscorp.com under the Investors section.

October 03: Norfolk Southern names Ehlers chief information officer

NORFOLK, Va., Oct. 3, 2017 -- Norfolk Southern Corporation (NYSE:NSC) today announced that its board of directors has appointed Fredric M. Ehlers as chief information officer, effective immediately. In this new role, Ehlers, a 32-year railroad veteran, will continue serving as vice president information technology, a position he has held since 2013.

September 26: Norfolk Southern appoints Galanko, Scheib to new positions

NORFOLK, Va., Sept. 26, 2017 /PRNewswire/ -- Norfolk Southern Corporation (NYSE:NSC) today announced that its board of directors has elected William A. Galanko and John M. Scheib to new positions of responsibility, effective Oct. 1.

The board named Galanko executive vice president law and administration, and Scheib senior vice president law and corporate relations.

September 26: Norfolk Southern increases stock repurchase program

NORFOLK, Va., Sept. 26, 2017 /PRNewswire/ -- Norfolk Southern Corporation (NYSE:NSC) today announced that its board of directors has authorized the repurchase of up to an additional 50 million shares of its common stock through Dec. 31, 2022. In combination with previous share repurchase authorizations since the inception of the program in 2006, the total number of shares that may be repurchased has increased from 175 million to 225 million.

"The board's action underscores its confidence in the future of Norfolk Southern," said James A.

September 21: Norfolk Southern Foundation supports Hurricane Irma recovery efforts

NORFOLK, Va., Sept. 21, 2017 /PRNewswire/ -- The Norfolk Southern Foundation is donating $100,000 and will match certain Norfolk Southern (NYSE:NSC) employee gifts as part of efforts to help people recover from Hurricane Irma.

The Foundation, Norfolk Southern's charitable giving arm, will give $50,000 to the American Red Cross and $25,000 each to the Feeding Tampa Bay and Feeding South Florida food banks.

Norfolk Southern Corp. (N:NSC)

ISIN: US6558441084

PermID: 4295904619

CIK: 702165

CUSIP: 655844108

Source: www.BuySellSignals.com