News        Sectors        Watchlists

Norfolk Southern Corporation (NSC)

NSC stock forecast: buy or sell

Close on Oct 23rd, 2020
$215.4 +1.07%
3 months performance
14.30%
Published: October 23rd, 2020 - 5.29pm EDT

NSC stock outlook

  • Norfolk Southern closed today at $215.40 after moving up a 1.07%.
  • Norfolk Southern is presenting its earnings report on Wednesday next week
  • Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States.

Important note:
The viewpoints contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the specific situations of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Comments are published for education motives only

NSC stock charts

Should I buy Norfolk Southern stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $NSC stock a buy?

In the current situation of Norfolk Southern there is just one buy setup eligible:

ATH buy setup

One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that price doesn't struggle with upper resistances, and usually it rises quickly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is always important. Price is now at 4.45% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $224.99. Place your stop-loss at $202.49

Buy setupBuy pointStop lossRisk
ATH buy setup$224.99$202.4910%

Should I sell Norfolk Southern stock?

Knowing when to sell a stock is even harder than knowing when to buy it. In the same way as when we have to buy shares, deciding when is appropiate to sell is not a whimsy decision, and we must use our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use but are only applicable for selling stocks in your porfolio, not for selling short Norfolk Southern stock

As a rule of thumb, you should never keep a trading operation that yields higher than expected losses at the time of purchase. When to sell your stock must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Norfolk Southern stock?

In the current situation of Norfolk Southern there is not any eligible sell setup, so Norfolk Southern stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell Norfolk Southern stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 9 ratings were published for Norfolk Southern. General sentiment is bullish, with 5 out of 9 publishing positive outlooks

Norfolk Southern ratings

Brokerage firmRating
Sep 25th, 2020
Benchmark NeutralStrong buy
Sep 30th, 2020
Bank of America Neutral
Oct 5th, 2020
Morgan Stanley Sell
Oct 8th, 2020
Barclays Sell
Oct 8th, 2020
Citigroup NeutralStrong buy
Oct 8th, 2020
Cowen Buy
Oct 8th, 2020
Credit Suisse Group Buy
Oct 8th, 2020
CSFB Buy
Oct 16th, 2020
Barclays

Technical analysis

SMAs overview

A favorite tool of many traders are the moving averages, that easily show market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

NSC SMAs chart

Supports and resistances

Traders use support and resistance levels as a way to spot price points on a chart that may work as barriers, containing the price of a stock to move up or down. Supports are levels where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until finding another support level. On the contrary, resistance levels are where the price tends to find opposition as it moves up. In the same manner, the price is more likely to "rebound" at this level, and if it finally ruptures this level, the price will climb easily until it hits the next resistance

The current resistance levels are:

  • R1: $216.63 (0.57% above)
  • R2: $221.38 (2.78% above)
  • R3: $224.99 (4.45% above)
  • The current supports are:

  • S1: $208.17 (-3.36% below)
  • S2: $205.34 (-4.67% below)
  • S3: $203.29 (-5.62% below)
  • Bollinger bands

    So-called Bollinger bands are a widespread technique designed by John Bollinger. Essentially, the Bollinger Bands are lines that fluctuate around a centralmoving average and vary the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The actual distance between the upper and lower bands is less than 5%, and this means that price volatility is at very low levels. Reduced volatility is often the antecedent to a sharp movement (up or down), so we must be alert and manage our buy or sell orders correctly

    NSC RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price movements to detect when the share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 in mid-September after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 50.77. Since RSI lost the overbought zone, Norfolk Southern stock tanked a 3.38%

    NSC RSI chart

    Earnings and financials

    NSC ($NSC) presents quarterly earnings report on Wednesday next week. Expected earnings a share for this quarter is $2.37, compared to $1.53 that was reported for Q2.

    Norfolk Southern Corporation ($NSC) came out with quarterly earnings of $1.53 per share in late July, uplifting the Market consensus estimate of $1.33 per share. This Q2 report represents an earnings surprise of 15.04%.

    This compares to earnings of $2.70 per share same quarter last year, so posted EPS is a drop of -43.33%.
    NSC revenues and profits chart