What Happened?
Shares of freight transportation company Norfolk Southern (NYSE: NSC) jumped 2.6% in the afternoon session after the largest U.S. railroad union backed its proposed $72 billion acquisition by Union Pacific following a landmark job security agreement.
The union, known as SMART-TD, agreed to a historic deal that guaranteed lifetime job protection for its members and prevented involuntary furloughs resulting from the merger. This unprecedented agreement was a game-changer, as the union announced it would now express its support for the merger to federal regulators, removing a significant hurdle for the deal's approval. The combination of the two rail giants would establish the first transcontinental railroad in the United States.
Adding to the positive sentiment, President Donald Trump also voiced his support for the acquisition. The market reacted well to the developments, which increased the likelihood of the deal's completion, projected for early 2027.
The shares closed the day at $290.66, up 2.4% from previous close.
Is now the time to buy Norfolk Southern? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Norfolk Southern’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 8.2% on the news that the company announced a quarterly dividend of $1.35 per share on its common stock. The dividend was made payable on August 20, 2025, to all shareholders of record as of August 1, 2025. This announcement continued the company's long-standing practice of returning capital to shareholders, marking the 172nd consecutive quarter it has paid a dividend since its formation in 1982. The move in the stock occurred as investors looked ahead to the company's second-quarter 2025 financial results, which were scheduled for release on July 29, 2025.
Norfolk Southern is up 24.6% since the beginning of the year, and at $292.36 per share, has set a new 52-week high. Investors who bought $1,000 worth of Norfolk Southern’s shares 5 years ago would now be looking at an investment worth $1,351.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
