In the latest trading session, CSX (CSX) closed at $37.60, marking a +0.75% move from the previous day. This move outpaced the S&P 500’s daily loss of 0.26%. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.04%.
Heading into today, shares of the freight railroad had gained 4.92% over the past month, lagging the Transportation sector’s gain of 5.31% and outpacing the S&P 500’s gain of 4.82% in that time.
Investors will be hoping for strength from CSX as it approaches its next earnings release, which is expected to be January 20, 2022. In that report, analysts expect CSX to post earnings of $0.42 per share. This would mark year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.32 billion, up 17.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.55 per share and revenue of $12.41 billion. These totals would mark changes of +27.05% and +17.23%, respectively, from last year.
Any recent changes to analyst estimates for CSX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.36% lower. CSX is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note CSX’s current valuation metrics, including its Forward P/E ratio of 24.01. Its industry sports an average Forward P/E of 24.41, so we one might conclude that CSX is trading at a discount comparatively.
Meanwhile, CSX’s PEG ratio is currently 2.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. CSX’s industry had an average PEG ratio of 2.2 as of yesterday’s close.
The Transportation – Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 22% 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.
To follow CSX in the coming trading sessions, be sure to utilize Zacks.com.
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