U.S. Markets closed

CSX (CSX) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
Carnival (CCL) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

CSX (CSX) closed the most recent trading day at $65.05, moving -0.05% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.68%.

Heading into today, shares of the freight railroad had gained 5.44% over the past month, lagging the Transportation sector's gain of 9.85% and the S&P 500's gain of 9.43% in that time.

CSX will be looking to display strength as it nears its next earnings release, which is expected to be April 16, 2019. On that day, CSX is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 17.95%. Our most recent consensus estimate is calling for quarterly revenue of $3.01 billion, up 4.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.22 per share and revenue of $12.61 billion. These totals would mark changes of +9.9% and +2.94%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CSX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.88% higher within the past month. CSX is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, CSX currently has a Forward P/E ratio of 15.42. This represents a discount compared to its industry's average Forward P/E of 15.74.

Investors should also note that CSX has a PEG ratio of 1.15 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. Transportation - Rail stocks are, on average, holding a PEG ratio of 1.34 based on yesterday's closing prices.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CSX Corporation (CSX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research