Jim Cramer’s Game Plan: 23 Stocks to Watch

14. Norfolk Southern Corporation (NASDAQ:NSC)

Number of Hedge Fund Holders: 50

Cramer commented on Norfolk Southern Corporation’s (NASDAQ:NSC) new CEO and recent solid earnings. Here’s what he said:

“Now, we have so many winners reporting, but there’s one lagger that I figure could break out here, Norfolk Southern. It’s got a new CEO, Mark George, who I think will bring some financial discipline to this great railroad. Norfolk Southern could put up some excellent numbers. Previous CEO should get some credit for that, by the way.”

Norfolk Southern (NASDAQ:NSC) offers rail transportation services, moving a wide range of materials, including agricultural products, chemicals, metals, and automotive goods. During the second quarter, the company secured a significant agreement with a metallurgical coal producer, which will involve shipping nearly 5 million tons of premium-grade coal once the mine achieves full production.

On August 1, the company announced plans for a major investment exceeding $200 million to improve capacity along the 3B Corridor in Alabama. The key rail line connects northern and central Alabama to the Port of Mobile, facilitating access to global markets. The 3B Corridor plays a critical role in the company’s overall traffic, serving essential industries such as agriculture, automotive, chemicals, forestry, and steel.

The project includes various improvements to terminal and track infrastructure, featuring capacity upgrades in central and southwest Alabama and multiple grade crossing improvements across the region. The benefits of this investment are expected to materialize as the improvements come online in 2025.

Additionally, Norfolk Southern (NASDAQ:NSC) reaffirmed its guidance for the operating ratio in the second half of the year, projecting a range between 64% and 65%. However, management has adjusted the full-year revenue forecast, now expecting growth of approximately 1%, down from the earlier estimate of around 3%.