Norfolk Southern Corporation is involved in the haulage by rail of raw materials, incomplete products and retail goods. It operates primarily in the South-East, East and Midwest of the US, providing its services in 22 states. The cumulative length of rail track on which they operates is over 32,000 kilometers. Revenue diversification by sector, for which transportation services are provided: coal: 15%, agriculture: 15%, metals and building materials: 13%, paper: 8%, chemicals: 17%, auto industry: 10%, multimodal transport: 22%.
The implementation of Donald Trump programs, including support for the US coal industry as well as increased US oil production, will stimulate growth in the haulage industry for these sectors, thereby increasing Norfolk Southern revenue. Trump proposals also include increased infrastructure spending (including the construction of modernised railway lines), which will have a positive influence on the company share price dynamics. Moreover, an increase in share prices will be facilitated by an improved financial performance. Revenue in the second quarter of 2016 grew by 1.41% (QoQ), and by 2.85% (QoQ) in the third. The business profit margins are also continuing to grow. Net profit in the second and third quarters of 2016 grew by 4.19% and 9.01% respectively. The ratio of net profit to revenue in the second and third quarters of 2016 amounted to 16.3% and 17.3% respectively. Financial stability continues to rise thanks to a declining debt load. The ratio of debt to total assets in the second and third quarters amounted to 29.41% and 29.18% respectively.
Investment period ends: 16/06/2017
Expected yield is calculated according to 95% capital protection and the price of the base asset at expiry, equal to 154 USD.
Norfolk share price has left the Ichimoku indicator cloud upwards and broken upwards through the 50-, 100- and 200- daily moving averages. Share price dynamics are showing an upwards trend. The significant technical levels are: 60.36; 64.23; 69.98; 72.13; 74.86; 78.45; 82.04; 84.33; 86.92; 90.08; 94.10; 97.97; 101.99; 106.73; 112.19; 117.50.