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CSX Corporation (CSX) is a leading transportation company in the U.S., specializing in rail-based freight services based in Florida. Valued at $68.6 billion by market cap, the company operates an extensive network covering 26 states and Canadian provinces, serving multiple industries.
Shares of the railroad giant have significantly underperformed the broader market over the past 52 weeks. CSX has gained 17.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 36.4%. Meanwhile, in 2024, shares of CSX are up 2.6%, compared to SPX's 25.2% gains on a YTD basis.
Zooming in further, CSX has also lagged behind the SPDR S&P Transportation ETF's (XTN) 29.3% gains over the past 52 weeks and 8.4% return in 2024.
On Oct. 16, CSX released its Q3 earnings report, and its shares dropped by 6.7% in the following trading session. It missed EPS and revenue estimates, with declining coal prices, lower fuel surcharges, and reduced other revenue impacting its top line.
For the current fiscal year, ending in December, analysts expect CSX's EPS to fall marginally to $1.84. The company’s earnings surprise history is mixed. It beat or matched the consensus estimates in three of the last four quarters, missing on another occasion.
Among the 24 analysts covering CSX stock, the consensus rating is "Moderate Buy,” a step down from “Moderate Buy,” a month ago. The current consensus is based on 16 "Strong Buy" ratings, one "Moderate Buy," and seven "Holds."
This configuration is slightly more bullish than a month before, with 15 analysts suggesting a "Strong Buy."
On Oct. 18, Stephens lowered its price target for CSX from $41 to $39 while maintaining an “Overweight” rating following softer-than-expected Q3 results. The company faced revenue pressure per carload, though reduced expenses partially offset this.
The mean price target of $38.67 represents a premium of 8.7% to CSX's current levels. The Street-high target of $44 indicates a potential upside of 23.7% from the prevailing market prices.
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.
