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CSX (CSX) Dips More Than Broader Markets: What You Should Know

·3 min read

In the latest trading session, CSX (CSX) closed at $28.83, marking a -0.55% move from the previous day. This move lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Prior to today's trading, shares of the freight railroad had lost 6.21% over the past month. This has lagged the Transportation sector's loss of 3.41% and the S&P 500's loss of 3.32% in that time.

Investors will be hoping for strength from CSX as it approaches its next earnings release. In that report, analysts expect CSX to post earnings of $0.47 per share. This would mark year-over-year growth of 17.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.65 billion, up 22.05% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.83 per share and revenue of $14.4 billion, which would represent changes of +17.31% and +15%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CSX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. CSX is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, CSX currently has a Forward P/E ratio of 15.85. For comparison, its industry has an average Forward P/E of 18.04, which means CSX is trading at a discount to the group.

Investors should also note that CSX has a PEG ratio of 1.56 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Rail industry currently had an average PEG ratio of 1.8 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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