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With a market cap of $64.9 billion, Jacksonville, Florida-based CSX Corporation (CSX) is a leading transportation company in the United States, specializing in rail-based freight services. Its extensive rail network, spanning approximately 20,000 route miles, connects key population centers across 26 states, the District of Columbia, and parts of Canada.
Companies valued at $10 billion or more are generally labeled as “large-cap” stocks, and CSX Corporation fits this criterion perfectly. Through its primary subsidiary, CSX Transportation, the company provides intermodal transportation, rail-to-truck transfers, and bulk commodity operations.
However, the freight railroad company is down 16.1% from its 52-week high of $40.12, achieved in February. Shares of CSX have risen marginally over the past three months, underperforming the broader Nasdaq Composite's ($NASX) 13.3% gain over the same time frame.
Longer term, CSX is down 2.9% YTD, lagging behind NASX's 32.6% gains. Moreover, shares of CSX have risen 1.4% over the past 52 weeks, compared to NASX's nearly 37% return over the same time frame.
Despite the relative underperformance, CSX has been trading above its 50-day and 200-day moving averages since the beginning of this month.
CSX shares dropped 6.7% following its Q3 earnings results on Oct. 16 that missed analyst expectations, with earnings per share of $0.46 versus the consensus of $0.48 and revenue of $3.6 billion falling short of the $3.7 billion forecast. Declining coal and intermodal revenue per unit, driven by low natural gas prices and stiff competition in the trucking industry, contributed to the disappointment. Investors were further concerned by CSX's Q4 guidance, which projected a $200 million revenue decline due to weaker coal markets, lower fuel prices, and hurricane-related disruptions.
In comparison, rival Norfolk Southern Corporation (NSC) has outperformed CSX. Shares of Norfolk Southern have gained 11.7% over the past 52 weeks and 5.1% on a YTD basis.
Despite CSX’s weak price action over the past year, analysts remain moderately optimistic about its prospects. Among the 24 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $38.86.
