Analysts Chime in on Corning, Quest Diagnostics, Canadian Pacific, Norfolk Southern, and More

Canadian Pacific Railway Limited (USA) (NYSE:CP), CSX Corporation (NASDAQ:CSX), and Norfolk Southern Corp. (NYSE:NSC) received the thumbs up from the analysts at Wells Fargo recently, as the money center bank has an ‘Outperform’ rating on the three. In particular, analysts at Wells believe Norfolk Southern’s exposure to coal will be an advantage in the future as the Trump administration rolls back many of the ‘War on Coal’ regulations passed under the Obama administration. More coal demand could translate to more coal shipments and higher profits at Norfolk. The analysts also believe Canadian Pacific has potential margin expansion upside and view CSX’s new boss, Hunter Harrison, as a solid candidate to turn around the railroad. According to our data, 47, 53, and 33 elite funds were long Norfolk Southern Corp. (NYSE:NSC), CSX Corporation (NASDAQ:CSX), and Canadian Pacific Railway Limited (USA) (NYSE:CP) at the end of December.

Despite the positive rating from Wells, shares of all three railroads are down partly due to crude prices falling. Many railroads ship crude, and commodity prices generally correlate with the price of the commodity as well.

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