2024-04-24 14:50:27 ET
Summary
- Norfolk Southern has faced challenges in post-pandemic freight demand and supply chain disruptions.
- The company settled a $600 million lawsuit related to a train derailment incident in Ohio.
- Despite these challenges, Norfolk Southern is focused on operational improvements and has potential for growth, with analysts forecasting significant EPS growth in the coming years.
Introduction
It's time to talk about Norfolk Southern ( NSC ) , one of the core holdings in my dividend growth portfolio.
Unfortunately, the company has entered rough waters after the pandemic.
- It struggled with extreme volatility in post-pandemic freight demand and general supply chain challenges.
- Like its peers, it was hit by consumer weakness and elevated inflation in 2022.
- The major train derailment in East Palestine, Ohio, last year came with hundreds of millions of additional costs.
- Related to the points above, it's currently engaged in a proxy battle with Ancora Holdings, an activist investor looking to replace board members to force significant change.
My most recent article on this railroad was written on Feb. 29, when I highlighted Ancora's attempt to influence the board with its own candidates....
Read the full article on Seeking Alpha
For further details see:
Norfolk Southern: A Dumpster Fire With Strong Annual Return Potential