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With a market cap of $56.9 billion, Jacksonville, Florida-based CSX Corporation (CSX) is a leading transportation company in the United States, specializing in rail-based freight transportation services. Through its subsidiary, CSX Transportation, it operates a vast rail network spanning approximately 20,000 route miles across 26 states, the District of Columbia, and parts of Canada.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and CSX fits this criterion perfectly. CSX provides essential links in the supply chain, transporting a variety of goods, including chemicals, agricultural products, automotive materials, and coal. It also offers intermodal services, rail-to-truck transfers, and short-term locomotive leasing.
Shares of the freight railroad are trading 20.6% below its 52-week high of $38.03. CSX has declined 8.3% over the past three months, a steeper decline than the broader Dow Jones Industrials Average’s ($DOWI) 4.1% dip over the same time frame.
In the longer term, CSX stock is down 6.4% on a YTD basis, which is more pronounced compared to DOWI’s 2% decrease. In addition, shares of CSX have decreased 18.3% over the past 52 weeks, lagging behind DOWI’s 7.7% return over the same time frame.
CSX has been trading below its 50-day and 200-day moving averages since December last year.
CSX shares fell 2.9% following its Q4 2024 earnings release on Jan. 23 due to disappointing financial results, including adjusted EPS of $0.42, which missed analysts' expectations. Revenue fell 4% year-over-year to $3.5 billion, slightly below the forecast, driven by a sharp 20% decline in coal revenue and lower fuel surcharges. Operating income dropped 8.3% to $1.2 billion, reflecting the impact of a goodwill impairment charge and overall weaker performance.
In addition, CSX Corporation has lagged behind its rival, Union Pacific Corporation (UNP), which has declined 2.5% over the past 52 weeks and saw a 4.4% rise on a YTD basis.
Due to CSX’s weak performance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 26 analysts covering the stock, and as of writing, the stock is trading below the mean price target of $36.48.
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.
