CSX (CSX) Dips More Than Broader Markets: What You Should Know – November 25, 2022

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In the latest trading session, CSX (CSX Free Report) closed at $32.02, marking a -0.16% move from the previous day. This move lagged the S&P 500’s daily loss of 0.03%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the freight railroad had gained 11.32% over the past month, lagging the Transportation sector’s gain of 11.37% and outpacing the S&P 500’s gain of 6.23% in that time.

Wall Street will be looking for positivity from CSX as it approaches its next earnings report date. In that report, analysts expect CSX to post earnings of $0.49 per share. This would mark year-over-year growth of 16.67%. Meanwhile, our latest consensus estimate is calling for revenue of $3.8 billion, up 10.9% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.91 per share and revenue of $14.92 billion. These totals would mark changes of +22.44% and +19.18%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CSX. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSX is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, CSX is currently trading at a Forward P/E ratio of 16.79. For comparison, its industry has an average Forward P/E of 18.25, which means CSX is trading at a discount to the group.

Meanwhile, CSX’s PEG ratio is currently 1.73. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. CSX’s industry had an average PEG ratio of 2.04 as of yesterday’s close.

The Transportation – Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.

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

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