Norfolk Southern Corporation (NSC)

NSC stock forecast: buy or sell

NSC stock outlook

  • Norfolk Southern stock went up 1.6% to close at $177.93 on the stock market today.
  • Price is drawing a scaled uptrend since late March with higher tops and higher bottoms. This uptrend marked a 58.88% gain
  • Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States.
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Important note:
The opinions contained in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this text does not have an understanding of the particular scenarios of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are provided for learning motives only

NSC stock chart overview

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:

Uptrend buy setup

Norfolk Southern stock continues to trend higher since in late March and marked an amazing 58.88% gain. Price marked a local bottom in this uptrend at $166.00 on June 25, and since then it bounced up a 7.19%. Breaking out above $200.55 - it's last top - will be a good entry point if Norfolk Southern resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $180.50

Buy setupBuy pointStop lossRisk
Uptrend buy setup$200.55$180.5010%
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Should I sell Norfolk Southern stock?

Knowing when to sell a stock is even harder than knowing when to buy it. As when we have to buy shares, determining when is the best time to sell is not a whimsical decision, and we must follow our own trading style. When selling, as well as buying, detailed strategies are very simple to follow but are only applicable for selling shares you already own, not for selling short NSC stock

A golden rule is that you must never hold an operation that leads to losses greater than those expected at the time of the buy. When to sell shares should 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 green can keep their positions

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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, 2 ratings were published for Norfolk Southern. General sentiment is bullish, with 2 out of 2 publishing optimistic forecasts

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Norfolk Southern ratings

Brokerage firmRating
Jun 25th, 2020
Citigroup Strong buy
Jul 2nd, 2020
TD Securities NeutralStrong buy

Technical analysis

Norfolk Southern shares started an uptrend in late March, and grew a gorgeous 58.88%. The price line shows higher highs and higher lows, and along the way gave some entry points for those who wanted to invest. Latest low was on June 25, when price bounced at $166.00. Like in all uptrends, price needs to rest and now price is moving in a range between $200.55 and $166.00

SMAs overview

Moving averages are simple tools for traders to gauge stock direction. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use support and resistance levels as a way to spot price points on a chart that may act as barriers, preventing the price of shares to move up or down. Supports are levels where the price tends to 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 the support, it is likely to continue falling until meeting another support level. On the contrary, a resistance level is where the price may find a curb as it moves up. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, the price will rally more easily until it approaches the next resistance

The current resistances are:

  • R1: $179.54 (0.9% above)
  • R2: $180.59 (1.49% above)
  • R3: $183.17 (2.94% above)
  • The current support levels are:

  • S1: $170.34 (-4.27% below)
  • S2: $170.02 (-4.45% below)
  • S3: $166.00 (-6.7% below)
  • Bollinger bands

    The so-called Bollinger bands are a widely known technical strategy designed by John Bollinger. Basically, the Bollinger Bands are lines that move around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a sell signal, as price can move in these levels for many days and weeks

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price action to identify when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    When the relative strength (RSI) fluctuates for so long below 70 and above 30, without indication of overbought and oversold, the indicator is of little use, and we are now in one of these cases.

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    Earnings and financials

    NSC had the financial call and posted the first-quarter report in late April. NSC topped Wall St estimates and posted an Earnings per Share of $2.58, that is a 14.67% better than expected versus the forecasts of $2.25. Reported sales were $2.6 billion versus estimates of $2.6 billion.

    This compares to earnings of $2.51 per share same quarter last year, so current EPS is an improvement of 2.79%. Looking at revenue, figures inched down a -7.39% compared to $2.8B same quarter a year ago.

    NSC is hosting the Q2 earnings call on Wednesday next week. Wall Street analysts estimate a per-share earnings of %s of $1.43, that is a 44.57% less than previous quarter. Financial reporting day has a more than usual risk for stock investors as the data published can soar and sink the shares price with very low liquidity and not respecting your buy/stop-loss orders. You can uncover more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.norfolksouthern.com.

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