Chart Says Norfolk Southern Will Keep Chugging Higher

by Sam Collins | April 17, 2014 1:42 am

Chart Says Norfolk Southern Will Keep Chugging Higher

Norfolk Southern Corp. (NSC[1]) — This rail transportation company and its subsidiaries engage in the movement of raw materials, intermediate products and finished goods that represent a broad cross-section of the economy. It transports these products and raw materials over 20,000 route miles in 22 states and Canada. 

The consensus earnings estimate for 2014 is $6.29 per share, and analysts expect $7.22 in 2015. S&P is more optimistic, expecting profit margins to increase thanks to stiffer cost controls and more fuel-efficient locomotives. It anticipates operating EPS of $6.44 for 2014 and $7.10 for 2015. NSC pays an annual dividend of $2.16 per share for a 2.3% yield.

In October, the stock jumped from a modest uptrend channel and established a new bull channel with support at its 50-day moving average, now at $94.36. On Wednesday, it flashed a buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), just below the bullish support line of the channel.

NSC closed above its 50-day moving average, helped by a buy signal from the stochastic indicator. The trading target is $104, which also happens to be the consensus mean target.

04 17 14 nsc 300x189 Chart Says Norfolk Southern Will Keep Chugging Higher
Click to Enlarge

chart key 300x84 Chart Says Norfolk Southern Will Keep Chugging Higher[2]

Endnotes:
  1. NSC: http://studio-5.financialcontent.com/investplace/quote?Symbol=NSC
  2. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

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