$NSC

The EPA's response to the 2023 Ohio train derailment will be investigated by its watchdog. Residents and Vice President JD Vance pushed for the review, citing health and environmental concerns. Norfolk Southern, the railroad operator, faces lawsuits and a $600 million settlement. The company is also pursuing an $85 billion merger with Union Pacific.

UBS reiterated a Neutral rating on Norfolk Southern (NYSE:NSC) with a $363 price target. The company reported Q3 EPS of $3.62, beating estimates of $3.47, driven by revenue growth and higher fuel surcharges. Revenue reached $3.5B, exceeding projections. Despite the beat, UBS and StoneX maintain Neutral/Hold ratings, citing overvaluation.

Norfolk Southern Corp. (NSC) announced its board approved President and CEO Wick Moorman as chairman, effective Feb. 1, succeeding David Goode. Goode, retiring at January's end, will remain a board member until the May annual meeting. The board also elected Daniel Carp, former Eastman Kodak Co. chairman and CEO, as a director.

Knight-Swift's aggressive strategy, including shedding unprofitable freight, led to an 89 operating ratio, outperforming J.B. Hunt's more conservative approach in a lukewarm freight market. Experts attribute Knight-Swift's success to its entrepreneurial culture, while J.B. Hunt's focus on dedicated and contract business limits its ability to quickly adjust to market changes. Norfolk Southern shares traded above Union Pacific's offer price, reflecting market expectations of a merger approval.

StoneX maintained a Hold rating on Norfolk Southern (NSC) after its Q3 earnings beat estimates, with adjusted EPS of $3.62 vs. $3.47 expected. Revenue also surpassed forecasts, driven by higher volumes and pricing. The company's P/E ratio is 27.5, and it is considered overvalued by InvestingPro. Management noted resilient consumer activity but warned of potential pressure from elevated energy prices.

TD Cowen kept a Buy rating on Norfolk Southern (NSC) with a $379 price target, suggesting a 12.1% upside. The company reported strong Q3 results, with adjusted EPS of $3.62, beating estimates. It also showed stable demand in key markets, like chemicals and metals, despite diesel fuel headwinds.

Union Pacific reported 6% higher freight volume and 1% fewer employees in Q3, with revenue up 15% to $7.2B and EPS up 16% to $3.49. Productivity improved 5%, and operating costs rose 4%. The company awaits regulatory approval for its merger with Norfolk Southern, targeting a 2027 close. CEO Jim Vena noted labor cost increases and hiring plans.

JPMorgan raised its price target for Norfolk Southern from $318 to $323. The stock is currently trading at $338.23, up 3.09% over 5 days and 17.15% year-to-date. The adjustment comes amid a broader downturn in the industrials sector.

AI stocks fell sharply, led by Meta (META) and Lam Research (LRCX), due to rising AI costs and supply constraints. Nasdaq dropped 2.6%, S&P 500 fell 1.2%. Defensive sectors like Staples and Health Care rose. Treasuries rallied as 10-year yield fell to 4.95%. Tesla (TSLA) and Nvidia (NVDA) also declined.

US railroads like Union Pacific, Norfolk Southern, and CSX reported higher Q3 profits and revenue due to a shift from trucking, driven by record fuel prices. Intermodal shipments rose 3-13% YoY, but rising fuel costs are squeezing margins. Diesel prices hit $6.53/gallon in September, per AAA.