Norfolk Southern Corporation (NSC): Today's Featured Services Laggard

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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Norfolk Southern Corporation fell $0.92 (-1.2%) to $74.92 on average volume. Throughout the day, 2,789,549 shares of Norfolk Southern Corporation exchanged hands as compared to its average daily volume of 2,265,600 shares. The stock ranged in price between $73.66-$76.25 after having opened the day at $76.11 as compared to the previous trading day's close of $75.84. Other companies within the Services sector that declined today were: DeVry ( DV), down 20.4%, Globus Maritime ( GLBS), down 15.8%, Media General ( MEG), down 15.1% and Mecox Lane ( MCOX), down 11.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Norfolk Southern Corporation engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. Norfolk Southern Corporation has a market cap of $25.1 billion and is part of the transportation industry. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 22.6% year to date as of the close of trading on Tuesday.

TheStreet Ratings rates Norfolk Southern Corporation as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, increase in stock price during the past year, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Boyd Gaming Corporation ( BYD), down 22.7%, Point.360 ( PTSX), down 12.4%, SUPERVALU ( SVU), down 12.1% and Education Management Corporation ( EDMC), down 11.8% , were all gainers within the services sector with Wynn Resorts ( WYNN) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

If you liked this article you might like

First Leg Down of United Tech; Hurricanes -- Jim Cramer's Top Thoughts

Cramer: Hurricanes Will Break the Decline of the Auto and Housing Industries

Helping Starbucks and Southwest Airlines Predict the Weather Is One Hot Business

I Would Favor an Upside Breakout on Norfolk Southern