Is it a good time to buy Norfolk Southern's Stock?
I work for Norfolk Southern. I noticed that our stock has jumped $20.00 since January. Now, I know next to nothing about investing in stocks. I do know enough, though, to realize that's a good thing :). What's the likelihood of it getting any higher? I know these things are always dicey to predict, but what's the best way to determine this?
Investing - 3 Answers
People's Answers, Critics, Comments, Opinions :
Answer 1 :
Of course this is just my opinion, but unless you get a healthy discount when purchasing it, it is rarely a good idea to own stock in the company you work for. Think about it, would you buy NSC if you worked somewhere else? Why or why not? Let's pretend you already own 1000 shares...what is the time you might most need to suddenly sell it? Probably when you get laid off as part of cost-cutting because the stock is doing poorly! So it's generally not a good move. If you just wanted to buy railroad company stock, Canadian National Railway Company (CNI) looks a far better buy at present with higher margins, higher earnings per share, about the same dividend yield, and a lower P/E ratio...
Answer 2 :
As Joseph said, to have you job and a big stock holding in one company is not a good idea. It maybe a good time to buy the stock for some people but maybe not for you. Do you have other holdings? 401k? Are you diversified? If so, then it may be ok. I notice their next year earning estimates are $4.55 X 15 (just under the market average P/E ratio) = $68.25. I think most of that $20 jump was because Warren Buffett said he bought some of the stock. things to check: They are a big coal hauler. Good if the clean coal gasification plants (now experimental) really work. If not watch the stock/haulings as most people would like dirty coal to be replaced as a fuel. Don't they also haul cars for Ford? How is the future of that business?
Answer 3 :
If you want " to get in the game"..you might as well invest in something you are familiar with. NSC is a great possibility at this point...one of the best run railroads in the U.S...but even with the $20 gain, they are still lagging a little behind other rails...THEY WILL CATCH UP ... Like some of the other answers said ...don't put everything on NSC...but it would not hurt to open an E* trade account on-line.. ( preferrably an IRA ) and put something into NSC. Just be aware that right now the companies that have " pricing- power" are doing great...they can raise their rates to offset their costs...buy there will come a point when people/ other companies/ businesses won't be able to keep paying more... when you see that happening ( down the road) take your profit ! That could be nine months from now or two years...and it could be 40 to 70 percent profit... Good luck.
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