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Based in Jacksonville, Florida, CSX Corporation (CSX) is a leading player in the transportation sector, specializing in rail-based freight services. With a market cap of $66.6 billion, the company operates an extensive rail network and offers a range of services, including intermodal container transport and rail-to-truck transfers.
Shares of this freight railroad company have underperformed the broader market over the past 52 weeks. CSX has climbed almost 4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 18.5%. In 2024, shares of CSX entered negative territory, with shares down 5.4%, compared to SPX's 12.1% gain on a YTD basis.
Narrowing the focus, CSX stock appears to have surpassed the Transportation Average iShares ETF's (IYT) 4% decline over the past 52 weeks and an 8.1% plunge on a YTD basis.
CSX has underperformed relative to the broader SPX due to declining revenue and margin contraction, exacerbated by lower fuel surcharges and reduced trucking demand. These factors and a decrease in average revenue per unit have contributed to weaker earnings growth and overall stock performance. Moreover, the stock dipped roughly 2% on Apr. 17 due to weather challenges and the closure of the Baltimore port, which contributed to a 10% decline in Q1 profit. Moreover, the port closure is expected to negatively impact Q2 revenue by $25 million to $30 million per month until it reopens.
For the current fiscal year, ending in December, analysts expect CSX's EPS to grow 4.9% year over year to $1.94. The company's earnings surprise history is promising. It beat or met the consensus estimates in all of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” and six “Holds.”
This configuration is less bullish than three months before, with 17 analysts suggesting a "Strong Buy."
On Jul. 10, Goldman Sachs (GS) adjusted its price target on CSX to $43, which implies a potential upside of nearly 26.2% from current levels.
The mean price target of $38.50 represents a premium of roughly 13% to CSX's current levels. Plus, the Street-high price target of $44 suggests that the stock could rally as much as 29.1% from here.
On the date of publication, Sohini Mondal 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.
