Norfolk Southern Corporation (NYSE:NSC) is one of the
13 Best Stocks to Invest In According to Billionaire Ken Griffin.
Railroad giant Norfolk Southern Corporation (NYSE:NSC) has been in the news lately due to its merger with Union Pacific. The deal has been in play since July last year. However, on June 7th, the Surface Transportation Board paused its review of the deal and directed the two companies to submit additional information for their application. The board’s review request pushed the deal’s completion timeline to mid-2027. Union Pacific’s CEO, Jim Vena, also remarked on President Trump’s interest in taking a $75 billion stake in the deal. Speaking to CNBC last week, the CEO remarked that his firm does not need federal support.
Norfolk Southern Corporation (NYSE:NSC) trades at a forward price-to-earnings ratio of 23.36, which is lower than the broader market’s 30.89. Baird raised the firm’s share price target to $315 from $288 and kept a Neutral rating on the shares.
SCCM Enhanced Equity Income Fund discussed Norfolk Southern Corporation (NYSE:NSC) in its fourth quarter 2025 investor letter:
“Norfolk Southern Corporation (NYSE:NSC) was sold in the quarter. Shares of Norfolk Southern were purchased in the strategy in May of 2025 and therefore held for well less than a year. However, in July, Union Pacific announced its acquisition of Norfolk Southern and the deal is expected to close by early 2027. Shares of Norfolk Southern have appreciated significantly since our purchase date, aided by the bid from Union Pacific but also driven by strong Merchandise revenue as well as an improving operating ratio. At 22x earnings and a dividend yield now under 2%, we decided to sell the shares and buy shares of Union Pacific, which trades at a lower P/E and higher dividend yield.”
While we acknowledge the potential of NSC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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