Norfolk Southern Corporation (NSC): Today's Featured Transportation Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Norfolk Southern Corporation ( NSC) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day down 0.8%. By the end of trading, Norfolk Southern Corporation rose $1.19 (1.8%) to $66.83 on heavy volume. Throughout the day, 3.3 million shares of Norfolk Southern Corporation exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $65.55-$67.14 after having opened the day at $65.72 as compared to the previous trading day's close of $65.64. Other companies within the Transportation industry that increased today were: Newlead Holdings ( NEWL), up 11.4%, FreeSeas ( FREE), up 8.1%, Knightsbridge Tankers ( VLCCF), up 6.2%, and Euroseas ( ESEA), up 5.3%.
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Norfolk Southern Corporation, through its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods primarily in the United States. Norfolk Southern Corporation has a market cap of $21.31 billion and is part of the services sector. The company has a P/E ratio of 11.5, equal to the average transportation industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 9.9% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Norfolk Southern Corporation a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Norfolk Southern Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, notable return on equity and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Overseas Shipholding Group ( OSG), down 62.1%, TOP Ships ( TOPS), down 8.2%, StealthGas ( GASS), down 6.8%, and DS Torm ( TRMD), down 6.3%, were all laggards within the transportation industry with CH Robinson Worldwide ( CHRW) being today's transportation industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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