With a market cap of $65.8 billion, CSX Corporation (CSX) is a leading U.S.-based rail transportation company headquartered in Jacksonville, Florida, operating an extensive network of about 20,000 route miles across 26 states and parts of Canada. The company provides freight and intermodal services, moving commodities such as agricultural products, chemicals, coal, metals, industrial goods, and automobiles, while connecting major ports and inland distribution hubs.
Companies valued over $10 billion are generally described as “large-cap” stocks, and CSX fits right into that category. CSX’s services include rail and intermodal transport, rail-to-truck transfers, and the movement of a wide range of commodities, making it a critical link in the North American supply chain.
Shares of the company have decreased 5.1% from its 52-week high of $37.25. CSX’s shares have risen 8.3% over the past three months, outperforming the S&P 500 Index ($SPX) 5.3% surge over the same time frame.
In the longer term, shares of the freight railroad have declined 3.3% over the past 52 weeks, lagging behind $SPX’s 14.2% rally over the same time frame. Additionally, the stock is up 9.6% on a YTD basis, compared to $SPX’s 16.5% rise,
CSX stock has fallen below its 50-day moving average recently and has climbed above its 200-day moving average since September.
On October 16, CSX Corporation released its third-quarter earnings, prompting a 1.7% gain in its shares in the following trading session. The company reported an adjusted EPS of $0.44, exceeding analyst expectations, though revenue of $3.59 billion fell slightly short of estimates. Freight volumes showed modest growth, largely supported by sustained demand in the intermodal segment, which benefits from the movement of containers and trailers across its rail network.
However, adjusted operating income declined to $1.25 billion, reflecting higher operating costs and ongoing investments in infrastructure and service improvements, which weighed on near-term profitability despite solid underlying volume trends.
In addition, CSX stock has performed better than its rival, Union Pacific Corporation (UNP), which soared 1.7% on a YTD basis and has dipped 5.5% over the past 52 weeks.
CSX stock has a consensus rating of “Moderate Buy” from 26 analysts' coverage, and the mean price target of $39.12 is a premium of 10.6% to current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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