11 Best Freight Stocks To Buy Now

4. Norfolk Southern Corporation (NYSE:NSC)

Number of Hedge Fund Holders: 54

Norfolk Southern Corporation (NYSE:NSC) is one of the best freight stocks to buy now. The railroad company has been operational since 1980. It is responsible for transporting raw materials and finished goods including agriculture, forest, and consumer products such as soybeans, corn, fertilizers, food oils, flour, and sweeteners.

54 investors held stakes in Norfolk Southern Corporation (NYSE:NSC), collectively amounting to $1.2 billion. Among them, Citadel Investment Group was the most prominent investor and disclosed a stake worth $255.25 million. The stock is also present on analysts’ radars. Based on price targets from 26 analysts, the stock has a median price target of $274.43, representing an upside of 23.78% from its current price target of $221.7. The stock has a consensus buy rating.

The company aims to enhance productivity and deliver strong earnings in 2024. The company’s growth strategy is expected to bring industry competitive margins, within 100 to 200 basis points. The company also expects to deliver a sub-60% operating ratio within the next three to four years. On April 24, Norfolk Southern Corporation (NYSE:NSC) reported market-beating earnings. The company reported earnings per share of $3.29, outperforming EPS estimates by $0.75, and a revenue worth $3 billion. Analysts expect the company to grow its earnings by 17.09% in the next 12 months and 9.45% in the next five years.

Norfolk Southern Corporation (NYSE:NSC) has an impressive track record when it comes to shareholder returns. Between 2019 and 2022, the company has returned $10 billion to shareholders and has grown its EPS by 27%. The stock has a dividend yield of 2.43% as at the time of writing, and had $282 million in free cash flow at the end of Q1 2024.