Latest news with #NorfolkSouthern
Yahoo
31 minutes ago
- Business
- Yahoo
Analysis: What a Union Pacific – Norfolk Southern merger would look like
The proposed merger between Union Pacific (UP) and Norfolk Southern (NS) would fundamentally reshape the U.S. railroad landscape, creating a single-line transcontinental network poised to redefine freight transportation. If successful, the deal would blend the strengths of both carriers—UP's western U.S. dominance and NS's eastern operations—facilitating seamless coast-to-coast service. Such integration holds significant potential for railroad customers, including retailers, manufacturers, and suppliers who rely heavily on rail for the distribution of goods, raw materials, and manufactured products. For shippers, the combined UP-NS network offers both opportunities and challenges. The most immediate advantage would be enhanced operational efficiency. By eliminating interchanges at major hubs like Chicago, Memphis, and New Orleans—a common bottleneck in the current system—shippers can expect reduced transit times and potentially lower costs. A streamlined process improves reliability and agility in the supply chain, which is particularly beneficial for time-sensitive industries such as retail and manufacturing. Norfolk Southern customers would get direct access to Mexico; Union Pacific customers could ship straight from southern California through to New York City. However, concerns always exist regarding reduced competition. A merger of this magnitude could reduce the number of Class I railroads from six to five, potentially driving up rates due to decreased competition, as highlighted by industry critics. Because Union Pacific and Norfolk Southern serve two different, non-overlapping regions of the United States, it's hard to see how the industry would lose significant competitiveness. Past mergers have shown mixed results; while some efficiencies were gained, others led to service disruptions and price hikes due to reduced market competition. The merged entity would oversee one of the densest rail networks in North America, with particular increases in traffic expected along high-volume transcontinental routes. Key lanes would likely include intermodal-heavy corridors connecting West Coast ports like Los Angeles to Eastern destinations via hubs such as Chicago and New York. These lanes are crucial, not just for general freight and merchandise, but also for specialized commodities like chemicals and bulk goods, including grain and coal. The densest lanes are projected to emerge post-merger, similar to historical precedents where traffic density increased with reduced route overlaps. This will likely lead to intensified usage of corridors such as the Overland Route and the Crescent Corridor, capitalizing on directional running and route optimization for heightened efficiency. The merger of Union Pacific (UP) and Norfolk Southern (NS) would predominantly lean towards intermodal traffic, accounting for approximately 53% of the combined network's total volume. This strong emphasis on intermodal reflects the strategic advantage of tapping into the efficient transcontinental routes, facilitating the flow of containers from key West Coast ports to Eastern markets. UP's substantial container traffic, combined with NS's intermodal leverage, emphasizes this projection. Bulk commodities, such as coal and grain, would comprise about 15.6% of the volume, with UP deriving notable coal volumes from its access to the Powder River Basin. Merchandise freight, which includes chemicals, motor vehicles, petroleum products, and other goods, would constitute the remaining 31.6%. NS moves significant volume in petroleum products and automotive parts, including finished vehicles, contributing to this segment. Growth within this combined entity would largely be driven by enhanced intermodal capabilities. The ability to provide consistent, reliable service across a single integrated network is expected to attract shippers seeking to streamline operations and cut costs. Additionally, potential increases in chemical and merchandise shipments could be facilitated by seamless transitions across strategic points, particularly in high-density lanes connecting major economic hubs. Despite the promising synergies, the merger will undergo significant scrutiny. Regulatory bodies like the Surface Transportation Board (STB) will assess the merger's implications on competition, particularly in regions where the two companies previously competed. Past industry consolidations suggest that any approval process will be lengthy and contentious, with stakeholders from various sectors voicing concerns over potential rate increases and decreased service options. A merger between Union Pacific and Norfolk Southern has the potential to transform the U.S. freight landscape by creating the first coast-to-coast single-line railroad. While it should generate efficiencies and increased network density, especially along key transcontinental routes, it also raises questions about competitive dynamics and regulatory hurdles. Shippers stand to benefit from faster, more reliable service—though these advantages must be weighed against the risks of reduced competition and potential integration challenges. The post Analysis: What a Union Pacific – Norfolk Southern merger would look like appeared first on FreightWaves. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Yahoo
a day ago
- Business
- Yahoo
Why Norfolk Southern (NSC) Stock Is Up Today
What Happened? Shares of freight transportation company Norfolk Southern (NYSE:NSC) jumped 8.2% in the pre-market session after the company announced a quarterly dividend of $1.35 per share on its common stock. The dividend was made payable on August 20, 2025, to all shareholders of record as of August 1, 2025. This announcement continued the company's long-standing practice of returning capital to shareholders, marking the 172nd consecutive quarter it has paid a dividend since its formation in 1982. The move in the stock occurred as investors looked ahead to the company's second-quarter 2025 financial results, which were scheduled for release on July 29, 2025. After the initial pop the shares cooled down to $278.38, up 0.4% from previous close. Is now the time to buy Norfolk Southern? Access our full analysis report here, it's free. What Is The Market Telling Us Norfolk Southern's shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 12 months ago when the stock gained 12.2% on the news that the company reported second-quarter earnings results that exceeded analysts' revenue expectations by a small amount but exceeded EPS expectations by a convincing amount. Overall, this quarter seemed strong and shareholders should feel optimistic. Norfolk Southern is up 18.7% since the beginning of the year, and at $278.38 per share, has set a new 52-week high. Investors who bought $1,000 worth of Norfolk Southern's shares 5 years ago would now be looking at an investment worth $1,472. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
2 days ago
- Business
- Reuters
BNSF Railway taps Goldman Sachs for railroad acquisition, sources say
July 21 (Reuters) - Berkshire Hathaway-owned (BRKa.N), opens new tab BNSF Railway is working with Goldman Sachs to explore the takeover of a rival railroad, two sources familiar with the matter told Reuters on Monday. A deal would add to a slew of M&A activity in the railway sector, amid rival Union Pacific's (UNP.N), opens new tab possible acquisition of Norfolk Southern (NSC.N), opens new tab to create a $200 billion coast-to-coast rail network. A merger between Union Pacific and Norfolk Southern would create the first modern West-to-East single-line freight railroad in the U.S., altering the industry's competitive landscape for peers like BNSF. BNSF did not immediately respond to a Reuters request for comment. It was not immediately clear whether BNSF would target Norfolk or the other East Coast carrier, CSX, according to Semafor which first reported the development. Shares of Norfolk Southern were up 2.4% in extended trading.
Globe and Mail
2 days ago
- Business
- Globe and Mail
Is Merger on the Cards Between Union Pacific & Norfolk Southern?
The railroad industry is likely to witness a new merger. Reportedly, the companies in talks regarding the aforesaid merger are Union Pacific Corporation UNP and Norfolk Southern Corporation NSC. Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. Currently, UNP has a market capitalization of $134.35 billion. UNP carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Norfolk Southern, headquartered in Atlanta, GA, engages in the rail transportation of raw materials, intermediate products and finished goods in the United States. Currently, NSC has a market capitalization of $62.37 billion. NSC currently carries a Zacks Rank #4 (Sell). According to the sources, the discussions are in the 'early stage' and at present lack promise of going through or being accepted by regulatory bodies. However, none of the companies have yet confirmed anything on the merger. Earlier this year, Union Pacific,chief executive officer, Jim Vena hinted at the possible profits that are likely to result from such a merger. This includes the enhancement of transfer-based bottlenecks in places like Chicago, where West Coast operators and East Coast operators often offload cargo to be transferred to another operator's network. A merger between Union Pacific and Norfolk Southern will generate the first modern West-to-East single-line freight railroad in the United States. Though the merger may generate easy connectivity between East Coast and West Coast, like any other deal, this deal requires regulatory approvals from multiple sources, primarily the Surface Transportation Board. For approval, UNP and NSC need to show that the deal will boost competition and aid the public. Shippers usually oppose mergers because decreasing the number of railroads in the country may further limit their options for shipping goods. Notably, the regulatory burden for merging railroads has historically remained high. The significant merger in the railroad industry was in 2023, when Canadian Pacific CP acquired Kansas City Southern for $31 billion, creating CPKC railroad. Amid the uncertain merger news, we await the upcoming second-quarter 2025 earnings results of both companies. While UNP is scheduled to report second-quarter 2025 results on July 24, before market open, NSC is slated to post second-quarter 2025 results on July 29. One Big Gain, Every Trading Day To help you take full advantage of this market, you're invited to access every stock recommendation in all our private portfolios - for just $1. Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That's about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%. Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Union Pacific Corporation (UNP): Free Stock Analysis Report Norfolk Southern Corporation (NSC): Free Stock Analysis Report Canadian Pacific Kansas City Limited (CP): Free Stock Analysis Report
Yahoo
2 days ago
- Business
- Yahoo
Union Pacific Corporation (UNP): I Like The Company, Says JIm Cramer
We recently published . Union Pacific Corporation (NYSE:UNP) is one of the stocks Jim Cramer recently discussed. Union Pacific Corporation (NYSE:UNP) is one of the biggest railroad companies in America. Like its peers, the firm's shares have also struggled on the stock market. However, until recently, Union Pacific Corporation (NYSE:UNP)'s shares were actually up 1.5% year-to-date, but recent events have turned the performance into a loss. These include reports that the firm might acquire either CSC or Norfolk Southern to consolidate the rail market. Investors are worried about whether financing the deals could affect the firm's bottom line. Here is what Cramer said about Union Pacific Corporation (NYSE:UNP): 'Yeah I don't want to give the impression that the rails aren't great. . .I like Union Pacific too. I like Norfolk Southern because I think, I'm very bullish on industrial. And the industrials so you don't need to fool around . . .So don't sell a rail, don't sell any of these capital equipment companies because I don't think people realize legislation is about capital equipment.' An intermodal container train winding through a rural landscape. The CNBC TV host previously discussed Union Pacific Corporation (NYSE:UNP)'s business as he briefly commented: 'But Union Pacific's a very energized company. Jim Vena, serious play. He's done a great job.' While we acknowledge the potential of UNP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
