New Target for Norfolk Southern Corp.

by Sam Collins   09/14/09
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Norfolk Southern Corp. (NSC) -- This rail transportation company and its subsidiaries engage in the movement of raw materials, intermediate products and finished goods that represent a broad cross-section of the economy, with an emphasis on energy (coal).

 

On Aug. 5, at $44.50, I said, "The stock fell from more than $75 in August 2008, to $27 in March, but since then traced a cup-and-handle formation (very bullish) with a breakout above its 200-day moving average in July.

"Several days ago, NSC signaled a short-term buy when the 20-day moving average crossed over the 200-day, and the stochastic turned sharply higher. The target for a trade is $50, but the longer-term target is $55 to $60. 

In light of the impending breakout and strong earnings forecasts, I'm raising my target to $60-plus. 

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