What changed
$NSC — AVOID 📊 | 6 MONTHS THESIS
🎯 Q1 2026 | Rev $3.0B | EPS $2.65 vs $2.49 🟢 | Margin 29.2%
💡 Market consensus may assume gradual OR recovery and stable volumes, but the adjusted OR of 68.7% is far above the pre-2025 mid-60s level. Without volume growth, EPS growth will be elusive.
📉 Reward/risk: 1.5:1
🏢 Business Quality: 8/10 - Class I railroad with an irreplaceable network, strong pricing power, and high barriers to entry, but facing near-term operational headwinds, elevated costs, and union/regulatory risks.
📊 Valuation: rich - at 26.1x trailing earnings, NSC trades above its peer group (UNP, CSX at ~20-22x) and its own normalized historical median of ~20x, with flat...
🔮 Catalyst: Q2 2026 earnings report (late July 2026) or an interim operational update
💰 Entry: $300.08, stop $280.0, target $330.0
📊 Our read: AVOID. Full analysis →
https://stockduty.xyz/s/NSC0620