68.62 0.00 (0.00%)
After hours: 4:58PM EDT
|Bid||68.59 x 3200|
|Ask||68.61 x 1800|
|Day's Range||68.43 - 71.00|
|52 Week Range||58.47 - 80.73|
|Beta (3Y Monthly)||1.24|
|PE Ratio (TTM)||16.52|
|Earnings Date||Oct 16, 2019|
|Forward Dividend & Yield||0.96 (1.36%)|
|1y Target Est||77.89|
CSX (CSX) was named to the Dow Jones Sustainability Index for North America for the ninth consecutive year, recognizing the company’s leadership in sustainable and responsible business practices. CSX was the only U.S.-based railroad included on the North American index in 2019. “CSX is achieving unprecedented goals – in safety, fuel efficiency, operating performance, and sustainability,” said James M. Foote, president and chief executive officer.
JACKSONVILLE, Fla., Sept. 18, 2019 -- CSX Corporation (NASDAQ: CSX) will release third-quarter financial and operating results after the market close on Wednesday, October 16,.
CSX Corporation (NASDAQ:CSX) stock witnessed a sharp decline after missing second quarter estimates. In addition, a weaker guidance for 2019 accelerated the decline. However, after touching a near-term low of $64.4, the stock is again higher by 12.4% to current levels of $72.4.Source: Wangkun Jia / Shutterstock.com I do believe that CSX is a fundamentally strong stock, but I remain bearish on the stock for the coming quarters. I am of the view that the stock can again trend lower and this coverage will elaborate on the concerns. Economic Concerns Will Weigh on CSX StockThe rail-based freight transportation is sensitive to economic fluctuations and CSX is likely to feel the impact in the coming quarters.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip To put things into perspective, the following data on the economy points to a meaningful slowdown: * The U.S. manufacturing sector is in recession for the first time in three years with the ISM manufacturing index reading below 50. * The probability of recession as indicated by Treasury spread is currently at 37.9%, which is the highest level since the financial crisis. * U.S. GDP growth for 1Q19 was 3.0% and it declined to 2.0% for 2Q19. According to GDPNow indicator, growth for 3Q19 is likely at 1.8%. Clearly, growth is decelerating and I expect weakness to sustain. The trade war impact on growth will be felt in the coming quarters.Clearly, the economy is weak and the impact will be felt by CSX in the form of lower revenue, potential margin compression, and decline in cash flows. Rail Traffic Trend Remains SluggishAccording to data from the Association of American Railroads, the rail traffic trend has remained depressed into the third quarter. Further, for the first 36 weeks of 2019, the total combined (carload and intermodal) traffic has declined by 3.7% as compared to the prior year.For the same period, CSX has witnessed a decline of 3.1% in total combined traffic. The good part is that CSX has outperformed the industry. The concern is that weak earnings will sustain and it remains to be seen if the downturn is relatively prolonged.In a recent report, Moody's analyst opines that the railroad sector can face $5 billion in lost revenue in the next decade as coal shipments decline. For 2018, CSX generated 18.3% revenue from coal. While the impact is not immediate, this is a long-term concern and adds to negative stock sentiments. Correction Will Provide Opportunity to Accumulate CSX StockI do believe that CSX stock price is headed lower in the coming quarters. However, any decline in the stock is an opportunity to accumulate.CSX is a fundamentally strong stock and worth holding to in your portfolio. To elaborate, the company reported an operating cash flow of $2.3 billion for the first half of 2019. Further, the free cash flow for the same period was $1.6 billion. This implies an annualized OCF and FCF of $4.6 billion and $3.2 billion respectively.Even if the company witnesses some margin squeeze amidst economic concerns, free cash flow will remain robust. In addition, the company has a cash buffer of $1.7 billion as of June 2019.The point I am making is that CSX stock has an annualized dividend of 96 cents and I see smooth dividend payments through the downturn. CSX is also positioned to create incremental shareholder value through share repurchases considering the free cash flow and liquidity buffer.It is worth noting that CSX Corporation has almost $16 billion in balance sheet debt. However, with annualized EBITDA in the range of $5.5 to $6 billion, debt servicing is likely to remain smooth. Interest coverage will remain robust even if EBITDA declines on a relative basis in the coming quarters. Clearly, CSX Corporation is well-positioned from a credit perspective to navigate challenging times. Final Thoughts on CSX CorporationCSX stock sharply trended lower after second-quarter earnings. But the stock has bounced back and I believe that weak earnings for 2019 are discounted in the stock.However, CSX stock price can trend lower if weakness sustains into 2020. That's one reason to avoid the stock at current levels.Overall, CSX is a quality company in terms of balance sheet fundamentals and cash flow. Any renewed correction would be an opportunity to accumulate.As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Economic Headwinds Will Keep CSX Stock Depressed appeared first on InvestorPlace.
As CSX leads the industry in a new direction, Wall Street is ecstatic — but customers are pushing back against what they call abuses.
If you've followed Wall Street's narrative throughout this year, I'm sure you've asked a question or two about CSX (NASDAQ:CSX). Specifically, why is the CSX stock price -- leaving aside July and August's volatility -- doing so well? After all, we've been hearing so much about the U.S.-China trade war and its impact on our economy. In that case, shares of the transportation giant should drop.Source: Wangkun Jia / Shutterstock.com Yes, the CSX stock price did decline in the summer months. Between the first of July and the end of August, the company's market value dropped a sizable 14%. Not coincidentally, that period covered the time when President Donald Trump threatened new tariffs against China. Unsurprisingly, the tough rhetoric rattled investors' nerves, sending the benchmark indices lower.But then a curious thing happened. Not known for tactful, diplomatic behavior, Trump dialed down some of his acerbic language. He's essentially called a temporary truce in the trade war, delaying an anticipated tariff bump-up by two weeks. Labeling it as a goodwill gesture, the president, according to his words, delayed the tariffs to allow China a distraction-free celebration of its republic's founding.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo, does this signal a buy for economic bellwethers like CSX stock? Apparently, many market experts think so. * 10 Battered Tech Stocks to Buy Now For example, Oppenheimer technical analyst Ari Wald suggested that the markets are moving off of "cyclically oversold levels." Wald also noted that global equities "are beginning to base in a move higher."Of course, as a technical analyst, Wald interprets the charts using standard or accepted methodologies. I'm fine with that. However, I can't help but notice that when it comes to transportation, technical interpretations have been deceiving. That makes me question the upside narrative for the CSX stock price. Transportation Stocks Have Been Bull TrapsAlthough I'm a proponent of technical analysis, I'm also objective about it. Certainly, I can understand the criticisms that this methodology appears subjective. What appears a breakout pattern to one analyst could be a breakdown warning for another.For CSX stock and the transportation complex, some analysts have made interesting calls. For example, Investopedia contributor Casey Murphy laid out his case for various transportation stocks. Since he published his analysis near the end of June, we can back-test his chart interpretations.Before we begin, I want to make clear that I'm not trying to shine a spotlight on Murphy. Rather, I merely want to illustrate how reasonable technical assessments can sometimes go sour.Let's start with the SPDR S&P Transportation ETF (NYSEARCA:XTN). Murphy suggested that traders may put a $71 price target on XTN. Although the fund temporarily moved higher, XTN has been very choppy. Since his publication date, the fund has been mostly flat.Next, Murphy analyzed Hertz Global (NYSE:HTZ). Noting HTZ's sideways movement, he suggested that the broader price action is trending higher; thus, traders may have set their price target for $30. Instead, HTZ moved lower to under $15.Finally, we have Kirby (NYSE:KEX). Here, Murphy saw a buy signal called a "golden cross." Unfortunately, KEX wasn't so golden because it broke down quite severely. Only a recent rally has brought KEX to near break-even with the price at time of publication.Again, my point is not to gloat. Instead, I think we should be very careful in how we interpret the CSX stock price.Technical analysts love talking about how they're market agnostic -- that price is the only thing that matters. But I disagree. The fundamentals matter too, and that's probably why the transportation stocks' buy signals failed. Approach CSX Stock With Healthy SkepticismGenerally speaking, I think investors should approach CSX stock with healthy skepticism. That's because they should approach the broader markets with the same sense of doubt.Mainly, we're well over 400 days into the U.S.-China trade war. While Trump boasts that the U.S. has suffered no damage, there's no way that could be right. For instance, Moody's Analytics estimates that the trade war resulted in 300,000 fewer American jobs. That figure could jump to 450,000 jobs if the conflict continues.That's a matter of economics 101. If you have poor relations with the world's second-biggest economy, you will suffer. That does not augur well for economically sensitive names like CSX stock.So, what's the play call here? I'd sit this one out. Although the recent surge in the charts is interesting, the fundamentals contradict this enthusiasm. If push comes to shove, I'm going to go with what makes sense.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post Ongoing Trade War Might Derail the Technical Argument for CSX Stock appeared first on InvestorPlace.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll apply a basic...
Board members plan to viist SunRail in Central Florida to see how the commuter rail service is successful.
Jacksonville-based Patriot Rail and Ports has been sold to New York-based First State Investments. The deal pairs the company, a combination of the former Patriot Rail and Diversified Port Holdings, with industry notable MidRail LLC. Patriot CEO John Fenton, FSI Director of Infrastructure Investments John Ma and MidRail Chairman Gil Lamphere spoke with the Business Journal about what the acquisition means for Patriot, which operates 13 shortline railroads and 10 port terminals around the country. MidRail has a decades-long reputation in the rail industry.
JACKSONVILLE, Fla., Sept. 03, 2019 -- CSX Corporation (NASDAQ: CSX) President and Chief Executive Officer James M. Foote will address the Morgan Stanley 7th Annual Laguna.
Canadian National Railway has signed an agreement to purchase the Massena line — 220 miles of track stretching between Quebec and Woodard, New York — from Jacksonville-based CSX (Nasdaq: CSX). “CN is excited to be expanding its reach in New York," CEO JJ Ruest said in a statement. "With this acquisition from CSX, we are opening up new opportunities for our existing customers and local businesses who will be able to access new markets through CN’s unique three coasts network.
With favorable market conditions in Canada, both Canadian Pacific (CP) and Canadian National (CNI) are on a solid footing for near-term growth.
Shares of CSX (NYSE:CSX) aren't looking good. The stock has been in decline as economic and trade-related worries continue to weigh on investor sentiment. Recent quarterly results aren't helping matters and all said, CSX stock is now down 20% from its highs.Source: Shutterstock Is it enough to draw in investors, or is the start of a nasty bear market in this rail stock?If the charts are any indication, more pain may be on the way. There is some hope left for bulls, if support can buoy the name. Or if we get some positive fundamentals news for the stock. But as it stands, the technicals are struggling.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's look at a few charts and see where CSX stock could be heading. Trading CSX Stock Click to EnlargeThere is a daily chart to the side and a below that is a weekly chart. Both highlight the not-so-hot setup of CSX stock price right now.As you can see on the daily chart, CSX stock has a very bearish-looking setup. After declining precipitously from $80 in mid-July, shares continue to put in a series of lower highs. That's squeezing CSX against a static level of support near $64. Should support give way, the stock will start probing the 2019 lows.CSX stock is already below all of its major moving averages and Fibonacci retracements. The 20-day is below the 50-day moving average, and the 50-day is crossing below the 200-day. This indicates that both short- and long-term momentum is turning in the bears' favor.For bulls to have a shot, they first need $63 to $64 to prove itself as support. From there, they need to get CSX over downtrend resistance (blue line) and the 20-day moving average. If they can muster up the strength for that, clearing the 61.8% retracement near $67 is next on the list.Should support fail, the year-to-date lows near $60 are the first target. Below that and the 52-week lows near $58 are next. Click to EnlargeOn the longer term chart, investors can see that CSX is teetering on its 200-week moving average. While the action hasn't been decisive, shares are actually below this mark now. This key moving average drew in buyers last December, halting CSX's decline and kickstarting a multi-month rally.The same momentum has not been seen this time around. Furthermore, long-term uptrend support (blue line) is being leaned on as well. If these levels give way, a decline to $58 is surely possible.On both charts, a rebound over $71 would be most encouraging for the bulls. Valuing CSX StockAn escalating trade war and worries about a recession do not help companies like CSX Corp. What does help CSX, Norfolk Southern (NYSE:NSC), Kansas City Southern (NYSE:KSU), Union Pacific (NYSE:UNP) and other rail companies is a strong consumer.Thankfully, that's exactly what we have. With a strong labor market and consumers who are willing to spend -- as noted by JPMorgan (NYSE:JPM), Visa (NYSE:V) and others -- demand for products remains high. Should that change, then the rails could be in trouble.Some of that fear is getting priced into the stock as we speak. With an inverting yield curve and manic headlines driving the news each day, how can investors not start to price in that possibility?Of course, it doesn't help when CSX stock fails to deliver as well. In July, the company missed on second-quarter expectations. Revenue of $3.06 billion missed estimates by more than $80 million and contracted 1.3% year-over-year. Earnings of $1.08 per share missed consensus estimates by 3 cents a share. Making matters worse, management cut its full-year revenue outlook.This came after five straight earnings and revenue beats. In Q1, CSX beat earnings estimates by more than 10% and grew revenue 4.75% year-over-year. To say Q2 was disappointing is an understatement.With additional tariffs looming, we may see some "pull ahead" from buyers in the current quarter. Further, we're coming up to Q3 and Q4, which are typically heavy demand months for consumers. If that's enough to improve the fundamentals for CSX stock, we'll need to it reflected on the charts.Over $67 give the bulls some spark. Over $71 and momentum can really pick up.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Kenwell is long V. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post CSX Stock Charts Point to Looming Breakdown appeared first on InvestorPlace.
CSX Corporation (CSX) today announced that Adam Longson, a seasoned leader with expertise in energy and transportation analytics, is joining the company’s Sales and Marketing organization as vice president of Energy effective September 9, 2019. “Adam’s deep knowledge of the energy and transportation industries will be a great asset for CSX, as we continue to engage in more strategic and analytical approaches to generating growth and long-term success for the business,” said Mark Wallace, executive vice president, Sales and Marketing. Longson will have responsibility for the newly consolidated energy portfolio, including export and domestic utility coal, as well as the company’s liquefied petroleum gas and crude oil businesses.
CSX Corporation (NASDAQ:CSX) stock is about to trade ex-dividend in 3 days time. If you purchase the stock on or after...
CSX (NYSE:CSX) reported weak earnings in mid-July. Since then, the CSX stock price has lost more than 17% of its value. Contrarians thinking of buying on the dip might want to protect their downside by opting for Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B).Source: Shutterstock Here's why. The Latest QuarterCSX reported its second quarter of 2019 earnings on July 16.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the top line, CSX had revenues of $3.06 billion, 1% less than a year earlier. This figure was also 2.6% lower than the consensus estimate for the quarter. On the bottom line, CSX increased earnings by 7% in the quarter to $1.08 a share. However, it missed the analyst estimate by 2.7%. * 10 Stocks Under $5 to Buy for Fall Although earnings weren't horrible, it was the cut in guidance for the year that sent investors scurrying for the exits. Initially, CSX expected revenue in 2019 to grow 1% to 2%; it now expects revenues to fall by a similar magnitude.CSX's slowdown isn't unique. Most of its peers reported sluggish volume in the second quarter while also missing analyst expectations. It's clear that the U.S.-China trade war is starting to impact the railroad industry.How's it looking over at Burlington Northern Santa Fe, Berkshire Hathaway's railroad subsidiary?Not much better.In the second quarter, BNSF saw revenues increase marginally from $5.88 billion to $5.89 billion with a 2.2% increase in net income. So, it produced similar results. And it's fair to say it too will deliver weaker results in the next two quarters of fiscal 2019.However, with the economy looking like it's about to go into a slow-down mode, Berkshire makes far more sense as a railroad play thanks in large part to the consistent revenue and earnings generation of its insurance business. The Downside Protection of BRKIn the first six months of 2019, Berkshire's insurance unit generated $17.5 billion, 8% higher than a year earlier. On the bottom line, its pre-tax income was $4.08 billion in the first six months. This was 5.6% lower than the previous year, due to higher underwriting losses and loss adjustment expenses.The profitability of the underwriting segment of its insurance business is dictated by the number and severity of claims in a given quarter or period. Sometimes it's going to go in the company's favor; sometimes it won't.However, in the end, Berkshire Hathaway's insurance business is going to generate billions in profits, a luxury that CSX doesn't have.So, if you believe that things are going to get much dicier heading into 2020, CSX stock is far more vulnerable to a market correction than Berkshire. The Bottom Line on CSX StockMy InvestorPlace colleague Luke Lango recently discussed three reasons why now isn't the time to buy despite the fact the CSX stock price has corrected substantially since announcing its earnings.Paraphrasing Luke's comments, railroad fundamentals are weak and aren't expected to improve anytime soon. Secondly, there's nothing particularly noteworthy that stands out about CSX at the moment. Finally, investors have little interest in taking on any more trade exposure than is humanly possible.Lango believes that the slide in CSX stock over the past month could continue given the lack of interest in railroad stocks. I would have to agree.If you have idle cash and are thinking about putting a little of it into a beaten-down CSX stock, I'd opt to either keep it in cash or do the lesser of two evils and buy Berkshire stock.This way, you get railroad exposure while maintaining a good level of diversification.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks Under $5 to Buy for Fall * 5 Stocks to Avoid Amid the Ongoing Trade War * 7 5G Stocks to Buy Now for the Future The post If You Like CSX Stock, Buy Berkshire Hathaway Instead appeared first on InvestorPlace.
Both railroad giants reported earnings last month, but their share-price trends since then have been markedly different.
Zacks Earnings Trends Highlights: Macy???s, Amazon, McDonalds, Caterpillar, CSX Corp., Borg Warner