With a market cap of $55.8 billion, Norfolk Southern Corporation (NSC) engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. Based in Atlanta, Georgia, the company transports agricultural, forest, and consumer products, chemicals, petroleum products, industrial chemicals, and more.

Companies worth $10 billion or more are typically referred to as "large-cap stocks." NSC fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the railroads industry. NSC benefits from providing a comprehensive logistics service and offers the most extensive intermodal network on the eastern side of the United States.

However, the stock has retreated 11.1% from its 52-week high of $277.60 touched on Nov. 6. Shares of NSC have surged 3.5% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 4% rise over the same time frame.

However, in the longer term, NSC stock is up 5.2% on a YTD basis, outperforming $NASX’s marginal decline. Moreover, shares of NSC have risen 10.6% over the past 52 weeks, trailing $NASX’s 12.3% returns over the same time frame.

To confirm its recent upturn, NSC has been trading above its 200-day moving average since late May and above its 50-day moving average since mid-May.

NSC stock grew marginally following the release of its Q1 earnings on Apr. 23. The company reported railway operating revenues of $3 billion, down $11 million from the previous year’s quarter. Moreover, its operating ratio for the quarter came in at 61.7%, down from 92.9% in the previous year’s quarter. Additionally, the company’s adjusted earnings came in at $2.69, which failed to surpass the consensus estimates by 1.1%.

In the railroads sector, key rival Union Pacific Corporation (UNP) has lagged, with its shares declining 3.2% in 2025 and 3% over the past year.

However, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 25 analysts covering the stock, and the mean price target of $260.52 implies a premium of 5.5% from the current market prices.