Last week, Ohio Governor Mike DeWine told CNN that Norfolk Southern must do more to make whole the residents who have had their homes devalued and suffered health problems related to the incident. For its part, the railroad has said it will stay in East Palatine, Ohio, for “as long as it takes.” It did not say no matter how much it costs.
Analysts are naturally cautious, with 10 of 28 having a Buy or Strong Buy rating and 18 more rating the stock at Hold. At a share price of around $212.50, the upside potential to a median price target of $240.00 is about 12.9%. At a high price target of $275.00, the upside potential rises to 29.4%.
For the first quarter, analysts have forecast revenue at $3.11 billion, down 3.9% sequentially but 7.2% higher year over year. Adjusted EPS are forecast at $3.15, down 8.0% sequentially and up by 7.5% year over year. For the full fiscal year, analysts forecast EPS of $13.47, down 2.9% year over year, and revenue of $12.59 billion, down 1.2%.
Norfolk Southern stock trades at 15.8 times expected 2023 EPS, 14.5 times estimated 2024 EPS of $14.63 and 13.3 times estimated 2025 earnings of $15.99 per share. The stock’s 52-week range is $196.33 to $269.05. The company pays an annual dividend of $5.40 (yield of 2.55%). Total shareholder return over the past year is negative 19.55%.
Teck Resources
Canada-based Teck Resources Ltd. (NYSE: TECK) mines metallurgical coal used for steelmaking, copper, zinc and energy (primarily oil). Shares are up 13% for the past year, including a jump of 20% so far in 2023. The company’s shareholders will vote Wednesday on a proposal to split the company into two firms, one to be called Elk Valley Resources to mine the met coal, and the other, Teck Metals, to operate its other mines. Competing against that division is a hostile offer from commodity giant Glencore to acquire Teck Resources for $22.5 billion. Stay tuned.
Of 17 analysts covering the stock, 14 have a Buy or Strong Buy rating and 2two more rate the stock at Hold. At a share price of around $45.40, the upside potential based on a median price target of about $48.80 is 7.6%. At the high price target of around $59.10, the upside potential is 30.2%.
Analysts expect Teck to report first-quarter revenue of $2.98 billion, up 28.4% sequentially but 1.0% lower year over year. Adjusted EPS are expected to reach $1.39, up 75.7% sequentially and down 41.3% year over year. For the full 2023 fiscal year, EPS are currently pegged at $5.02, down 25.2%, on revenue of $12.58 billion, down 8.6%.
Teck’s stock trades at 9.1 times expected 2023 EPS, 9.9 times estimated 2024 earnings of $4.62 and 10.0 times estimated 2025 earnings of $4.55 per share. The stock’s 52-week range is $24.72 to $49.34. Teck pays an annual dividend of $1.85 (yield of 4.03%). Total shareholder return over the past 12 months was 15.33%.
Originally published at 24/7 Wall St.
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