UBS’ Best Stocks In The AI, Growth & Low Rates Era: Top 29 US Stocks

25. Norfolk Southern Corporation (NYSE:NSC)

Number of Hedge Fund Investors In Q2 2024: 50

UBS’ Sector Rating: Neutral

Sector: Industrial

Norfolk Southern Corporation (NYSE:NSC) is one of the biggest railroad transportation companies in North America. It primarily serves the needs of the American markets and ships a variety of dry and wet goods. Norfolk Southern Corporation’s (NYSE:NSC) rail network covers 22 states and the firm’s reliance on the industrial industry also means that it is exposed to economic health. Consequently, as industrial activity has been muted in the US due to high rates and inflation, Norfolk Southern Corporation’s (NYSE:NSC) shares are up by a modest 7.25% year to date. However, the pent-up momentum in the stock is also evident by the fact that its shares jumped by a sharp 11% in July. The jump followed Norfolk Southern Corporation’s (NYSE:NSC) $3.04 billion revenue met analyst estimates and EPS of $3.06 beat estimates. Investors were pleased that the firm had managed to mitigate the effects of a devastating train crash in East Palestine, Ohio last year.

Aristotle Investment Partners mentioned Norfolk Southern Corporation (NYSE:NSC) in its Q2 2024 investor letter. Here is what the fund said:

“Norfolk Southern detracted from performance in the second quarter. The company reported a worse-than-expected earnings result for its first quarter in late April. In the second quarter, the company has been reporting weaker-than-expected railcar volumes on its network. This weaker volume has resulted in some sell-side analysts reducing their estimates for the second quarter of 2024. In addition, sentiment is weak because an activist shareholder was not successful in replacing the CEO of Norfolk Southern during a proxy battle in May; however, the activist did succeed in replacing some board members.”