NSC Should I Buy
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Norfolk Southern Corp (NSC) is not a strong buy at this moment for a beginner investor with a long-term strategy. The stock is currently in a pre-market phase with a price of $313, but recent financial performance, analyst sentiment, and congressional trading data suggest caution. While technical indicators show bullish trends, the lack of strong proprietary trading signals and the presence of negative catalysts outweigh the positives for a long-term investment decision.
The stock shows bullish moving averages (SMA_5 > SMA_20 > SMA_200) and a positive MACD histogram (2.622). However, the RSI_6 at 75.938 is in the neutral zone, and the stock is trading near its resistance level (R1: 316.719). This suggests limited immediate upside potential.
The company raised its stock target price to $342 from $320, and the ongoing merger discussions with Union Pacific could provide long-term value if approved.
Congressional trading data shows 4 sale transactions and no purchases in the last 90 days, indicating cautious sentiment. Analysts have downgraded the stock multiple times recently, citing weaker yields, operating ratios, and intermodal competition. Financial performance in Q4 2025 showed declines in revenue (-1.65% YoY), net income (-12.02% YoY), and EPS (-11.46% YoY).
In Q4 2025, the company reported a revenue drop to $2.974 billion (-1.65% YoY), net income of $644 million (-12.02% YoY), and EPS of $2.86 (-11.46% YoY). Gross margin also declined to 33.32% (-9.63% YoY), reflecting weaker profitability.
Recent analyst ratings are mixed to negative. UBS downgraded the stock to Neutral with a price target of $342, citing weaker operating ratios and merger uncertainties. Other firms like Baird, RBC Capital, and Citi have lowered price targets, with most maintaining Neutral ratings. Barclays remains optimistic with an Overweight rating but reduced its price target to $320.
