Norfolk Southern (NSC) Offering Possible 19.05% Return Over the Next 28 Calendar Days

Norfolk Southern's most recent trend suggests a bullish bias. One trading opportunity on Norfolk Southern is a Bull Put Spread using a strike $155.00 short put and a strike $145.00 long put offers a potential 19.05% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $155.00 by expiration. The full premium credit of $1.60 would be kept by the premium seller. The risk of $8.40 would be incurred if the stock dropped below the $145.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Norfolk Southern is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Norfolk Southern is bullish.

The RSI indicator is at 75.19 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Norfolk Southern

Why We Think Norfolk Southern Corporation (NYSE:NSC) Could Be Worth Looking At
Wed, 16 Jan 2019 15:03:00 +0000
Attractive stocks have exceptional fundamentals. In the case of Norfolk Southern Corporation (NYSE:NSC), there's is a highly-regarded dividend-paying company with a a great track record of delivering benchmark-beating performance. Below

Read More…

See what the IHS Markit Score report has to say about Norfolk Southern Corp.
Tue, 15 Jan 2019 13:01:30 +0000
# Norfolk Southern Corp

### NYSE:NSC

View full report here!

## Summary

* Perception of the company's creditworthiness is neutral
* Bearish sentiment is low
* Economic output for the sector is expanding but at a slower rate

## Bearish sentiment

Short interest | Positive

Short interest is extremely low for NSC with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting NSC.

## Money flow

ETF/Index ownership | Neutral

ETF activity is neutral. The net inflows of $11.59 billion over the last one-month into ETFs that hold NSC are not among the highest of the last year and have been slowing.

## Economic sentiment

PMI by IHS Markit | Negative

According to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing.

## Credit worthiness

Credit default swap | Neutral

The current level displays a neutral indicator. NSC credit default swap spreads are within the middle of their range for the last three years.

Please send all inquiries related to the report to score@ihsmarkit.com.

Charts and report PDFs will only be available for 30 days after publishing.

This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

Kansas City Was the Lowest Rail Traffic Volume Gainer in Week 1
Tue, 15 Jan 2019 12:30:52 +0000
US Railroads Kick-Start 2019 with Strong Traffic Growth(Continued from Prior Part)Rail trafficKansas City Southern’s (KSU) rail traffic in Week 1 increased 1% YoY to 35,468 railcars from 35,114 railcars. The company’s rail traffic growth rate

Intermodal Rail Taking Growing Share Of Containers Out Of NY-NJ Ports
Mon, 14 Jan 2019 16:25:58 +0000
Intermodal rail is taking a growing share of container traffic coming out of the largest U.S. East Coast port as more heavy freight moves across the docks and trucking costs rise. Rail volume at the Port of New York and New Jersey saw a 14 percent rose in the period between January to November 2018, reaching 593,806 containers, the Port Authority of New York and New Jersey said. The November tally of 53,609 containers is the ninth month in a row that volumes have been above 50,000 containers, the port noted.

How Canadian Pacific’s Rail Traffic Trended in Week 1
Mon, 14 Jan 2019 15:30:49 +0000
US Railroads Kick-Start 2019 with Strong Traffic Growth

(Continued from Prior Part)

## Canadian Pacific’s rail traffic

Canadian Pacific Railway (CP) reported 5% YoY total traffic volume growth in the first week of 2019. The company carried 43,636 railcars compared to 41,541 units in Week 1 of 2018.

The company’s rail traffic growth was the second lowest among all of Class I railroad companies (XTN). Norfolk Southern (NSC) had the highest rail traffic gains of 15.8% during the week. On the other hand, Kansas City Southern (KSU) reported the lowest traffic gain of 1% for the first week of 2019.

## Carloads and intermodal traffic

Canadian Pacific’s carload traffic grew 8.9% YoY to 29,576 compared to 27,165 units in the first week of 2018. The commodity groups excluding coal accounted for 81% of total carloads. Coal carloads contributed 19% to the total carloads. Commodity group traffic other than coal rose 8.4% YoY to 24,083 railcars in the week from 22,212 units in Week 1 of 2018. Moreover, coal carloads increased 10.9% YoY to 5,493 railcars from 4,953 units.

Commodities excluding coal that reported notable volume growth in the first week included energy, potash, forest products, fertilizer and sulfur, chemicals, and plastics. Commodities that recorded a YoY decline in the volumes were metals, minerals, and automotive.

In the first week, Canadian Pacific registered a YoY decline of 2.2% in intermodal traffic. During the week, the company hauled 14,060 containers and trailers compared to 14,376 units in the same week last year. Unlike other railroad companies, Canadian Pacific doesn’t report container and trailer traffic separately.

Apart from Canadian Pacific, BNSF Railway and CSX (CSX) also reported a YoY decline in their respective intermodal units.

Now, we’ll look at Kansas City Southern’s rail traffic performance.

Continue to Next Part

Browse this series on Market Realist:

* Part 1 – US Railroads Kick-Start 2019 with Strong Traffic Growth
* Part 2 – Norfolk Southern Was Top Traffic Volume Gainer in First Week
* Part 3 – CSX Reported Strong Carload Traffic Growth in Week 1

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