<div id="readability-page-1"><div><p>Norfolk Southern (NSC) has quietly outpaced many peers this year, with the stock up about 24% year to date, even after slipping slightly over the past week.</p> <p>See our latest analysis for Norfolk Southern.</p> <p>That 24.2% year to date share price return, alongside a 27.1% total shareholder return over the past year, suggests momentum is still broadly intact as investors reassess rail demand, efficiency gains, and operational risk following recent network and safety initiatives.</p> <p>If Norfolk Southern’s run has you rethinking where the next opportunity might be, it could be worth scanning fast growing stocks with high insider ownership as a fresh hunting ground for potential leaders.</p> <p>Yet with shares hovering near 52 week highs and trading only modestly below analyst targets, investors now face a key question: is Norfolk Southern still undervalued or is the market already pricing in its future growth?</p> <h2>Most Popular Narrative: 5.5% Undervalued</h2> <p>With Norfolk Southern last closing at 291.41 dollars against a narrative fair value of about 308 dollars, the storyline leans toward modest upside potential based on steady execution rather than explosive growth.</p> <blockquote> <p><em>The analysts have a consensus price target of 298.158 dollars for Norfolk Southern based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of 339.0 dollars, and the most bearish reporting a price target of just 235.0 dollars.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Curious how relatively low revenue growth, firm but easing margins, and a higher future earnings multiple still add up to upside potential? Unlock the full valuation playbook behind this narrative and see which assumptions are quietly doing the heavy lifting.</p> <p><strong>Result: Fair Value of $308.32 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this upside case could be knocked off track by weaker industrial demand or intensifying price competition across freight and intermodal corridors.</p> <p>Find out about the key risks to this Norfolk Southern narrative.</p> <h2>Another Angle on Value</h2> <p>On earnings based valuation, Norfolk Southern looks less generous. The stock trades around 22.1 times earnings versus a fair ratio of roughly 18.1 times, and above its own intrinsic estimate of 218.24 dollars per share, hinting at downside risk if sentiment cools. Which story do you believe?</p> <p>See what the numbers say about this price — find out in our valuation breakdown.</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/cdbec2ae-e70e-405e-bf95-2fe500270b34/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/cdbec2ae-e70e-405e-bf95-2fe500270b34/chart/pe-multiple-vs-industry"/><figcaption>NYSE:NSC PE Ratio as at Dec 2025</figcaption></figure><h2> Build Your Own Norfolk Southern Narrative</h2> <p>If you are not fully convinced by this perspective or prefer to dig into the numbers yourself, you can build a personalised view in minutes: Do it your way.</p> <p>A great starting point for your Norfolk Southern research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>Before you move on, put your research momentum to work and explore a few fresh opportunities using targeted screeners that surface quality ideas in seconds.</p> <ul> <li>Uncover potential mispricings by scanning these 912 undervalued stocks based on cash flows that could offer upside if the market catches up to their cash flow strength.</li> <li>Capitalize on sector shifts by zeroing in on these 29 healthcare AI stocks at the intersection of medicine and machine learning.</li> <li>Position ahead of speculative waves by reviewing these 79 cryptocurrency and blockchain stocks that are building real businesses around blockchain and digital assets.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>Norfolk Southern (NSC) has seen a 24% year-to-date share price increase, with a total shareholder return of 27.1% over the past year. Analysts have a consensus price target of $298.158, with the stock currently trading at $291.41. The fair value is estimated at $308.32, suggesting it is undervalued. However, the stock trades at 22.1 times earnings, above its intrinsic estimate of $218.24, indicating potential downside risk. Investors are reassessing its valuation amidst rail demand, efficiency gains, and operational risks.</p>

Norfolk Southern (NSC): Reassessing Valuation After a Strong Year-to-Date Share Price Rally