Latest news with #CSXCorporation
Yahoo
7 days ago
- Business
- Yahoo
CSX's (NASDAQ:CSX) investors will be pleased with their favorable 35% return over the last five years
If you buy and hold a stock for many years, you'd hope to be making a profit. Better yet, you'd like to see the share price move up more than the market average. Unfortunately for shareholders, while the CSX Corporation (NASDAQ:CSX) share price is up 26% in the last five years, that's less than the market return. Unfortunately the share price is down 6.4% in the last year. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Over half a decade, CSX managed to grow its earnings per share at 4.4% a year. So the EPS growth rate is rather close to the annualized share price gain of 5% per year. That suggests that the market sentiment around the company hasn't changed much over that time. Rather, the share price has approximately tracked EPS growth. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, CSX's TSR for the last 5 years was 35%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! CSX shareholders are down 5.0% for the year (even including dividends), but the market itself is up 13%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 6% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for CSX you should know about. But note: CSX may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
CSX Corporation (CSX): It's Important To Know How The Firm Is Doing, Says Jim Cramer
We recently published a list of . In this article, we are going to take a look at where CSX Corporation (NASDAQ:CSX) stands against other stocks that Jim Cramer discusses. CSX Corporation (NASDAQ:CSX) is one of the largest railroad companies in America. The firm's stock performance depends on economic activity and is down by 4% year-to-date. However, CSX Corporation (NASDAQ:CSX)'s shares have gained 7% since early May. The shares have benefited from a broader rally in railroad stocks that kicked off at the start of the month. The stocks gained after trade tensions between the US and China appeared to thaw and investors bet on railroads on the promise of greater economic activity. Cramer's previous comments about CSX Corporation (NASDAQ:CSX) remarked that investors appeared to forgive the firm for weak performance. Here are his recent remarks: 'And then Joe Hinrichs from CSX. I mean we have to know what the rail's are saying. Because again I think that April's a weak month. And we're gonna have to, a lot of these quarters that we're hearing they ended at March. March was still good because of pre Liberation Day.' A freight train moving through a rural landscape, its engine and numerous rail cars carrying the company's cargo. River Road Asset Management mentioned CSX Corporation (NASDAQ:CSX) in its Q4 2024 investor letter. Here is what the firm said: 'As of December 31, the portfolio held 29 positions, up four positions from Q3. During Q4, the largest sector increase was 736 bps within industrials, while the largest decrease was -276 bps within consumer discretionary. We established five new positions and eliminated one position Overall, CSX ranks 8th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of CSX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSX and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-04-2025
- Business
- Yahoo
CSX Corporation (CSX): Among The Best Railroad Stocks To Buy According To Billionaires
We recently published a list of . In this article, we are going to take a look at where CSX Corporation (NASDAQ:CSX) stands against other best railroad metals stocks to buy according to billionaires. The trade war initiated by President Trump will force freight railroads to position themselves for the chain reaction. Tariffs on Mexico, Canada, China, and Europe will set in and shake up the trade network. In 2024 alone, American railroads moved $203.1 billion worth of goods across the Canadian and Mexican borders. The rail sector remains a vital economic engine, generating $233.4 billion in output and supporting approximately 750,000 jobs in 2023. At the same time, railroads also demonstrated their commitment to long-term growth by reinvesting $26.8 billion into infrastructure last year. While much of the attention has been on autos and consumer goods, chemicals are a critical piece of the puzzle. The United States exported over $28 billion in chemicals to Canada last year and imported around $25 billion, making Canada the top supplier of chemical imports. Canada also plays a strategic role in the US critical minerals supply chains, EV battery production, and energy imports, including crude oil, natural gas, and electricity. Industry experts warn that new tariffs could drive up costs across sectors, from chemicals used in drinking water treatment to construction materials like lumber, creating potential inflationary pressure. Despite the risks, Wall Street remains cautiously optimistic. Analysts believe the supply chain could adapt, especially for goods like lumber that already face steep tariffs. Early signs suggest the administration is moving deliberately, giving companies time to adjust strategies. Railroads and freight remain central players, particularly with Mexico's auto exports, 70% of which move by rail, and chemicals are heavily reliant on cross-border logistics. Longer term, a trade war could test the strength of USMCA relationships and ripple across North American supply chains, but for now, businesses are preparing while the administration signals a phased approach. In November 2024, Joe Hinrichs, CEO of a leading US rail company, shared an insight with CNBC's Jim Cramer that still holds true today: 'From our standpoint, actually, as long as it's coming to the U.S., we're going to move it somewhere. If tariffs change the trade portfolio — as long as the economy's growing, we'll be a part of it.' Warren Buffett is a major investor in the railroad industry and has commented that the railroad industry, including BNSF, is a "better business now" than it was in the past. With that outlook in mind, let's take a look at some of the best railroad stocks that billionaires are piling into. A freight train moving through a rural landscape, its engine and numerous rail cars carrying the company's cargo. For this article, we focused on making a list of all railroad and railcar stocks publicly listed in the United States. Using Insider Monkey's Q4 2024 database, we examined billionaire sentiment for each stock and selected the 10 most popular ones. The stocks are ranked in ascending order based on the number of billionaire investors as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Number of Billionaire Investors: 13 Stake Value of Billionaire Holdings: $1,489,665,848 CSX Corporation (NASDAQ:CSX) is one of the best railroad stocks to invest in, with 13 billionaires collectively holding shares worth close to $1.5 billion. The company is based in Jacksonville, Florida, and it offers freight transportation across the United States and Canada through rail and trucking. It transports chemicals, agricultural goods, minerals, automotive products, forest products, fertilizers, metals, coal, and iron ore. On April 17, UBS analyst Thomas Wadewitz reiterated a Buy rating on CSX Corporation (NASDAQ:CSX) but trimmed the price target from $36 to $34. The analyst praised CSX's strength in agriculture, fertilizers, and minerals, and noted coal could get a short-term boost from plant restocking. Still, he warned about risks in intermodal, automotive, and chemicals because of economic uncertainty and tariffs. CSX Corporation (NASDAQ:CSX) posted weaker results for the first quarter of 2025, with operating income falling to $1.04 billion and net income dropping to $646 million. Revenue also slid 7% to $3.42 billion, impacted by lower coal shipments, fuel surcharges, and merchandise volumes. According to Insider Monkey's fourth quarter database, CSX Corporation (NASDAQ:CSX) was part of 13 billionaire portfolios. Billionaire Andreas Halvorsen's Viking Global raised its stake in CSX by 57% in Q4, holding 14.6 million shares worth $473.4 million at the end of Q4 2024. Overall, CSX ranks 3rd among the best railroad stocks to buy according to billionaires. While we acknowledge the potential of CSX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CSX but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
CSX (NASDAQ:CSX) shareholders have earned a 6.4% CAGR over the last five years
CSX Corporation (NASDAQ:CSX) shareholders might be concerned after seeing the share price drop 14% in the last quarter. On the bright side the share price is up over the last half decade. However we are not very impressed because the share price is only up 27%, less than the market return of 99%. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, CSX achieved compound earnings per share (EPS) growth of 4.4% per year. So the EPS growth rate is rather close to the annualized share price gain of 5% per year. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). Dive deeper into CSX's key metrics by checking this interactive graph of CSX's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, CSX's TSR for the last 5 years was 36%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! CSX shareholders are down 16% for the year (even including dividends), but the market itself is up 9.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 6%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand CSX better, we need to consider many other factors. Take risks, for example - CSX has 1 warning sign we think you should be aware of. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
13-04-2025
- Business
- Yahoo
At US$28.01, Is It Time To Put CSX Corporation (NASDAQ:CSX) On Your Watch List?
Let's talk about the popular CSX Corporation (NASDAQ:CSX). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$33.67 at one point, and dropping to the lows of US$26.69. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether CSX's current trading price of US$28.01 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at CSX's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Great news for investors – CSX is still trading at a fairly cheap price. According to our valuation, the intrinsic value for the stock is $39.39, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What's more interesting is that, CSX's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. Check out our latest analysis for CSX Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. CSX's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. Are you a shareholder? Since CSX is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on CSX for a while, now might be the time to enter the stock. Its prosperous future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy CSX. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed buy. So while earnings quality is important, it's equally important to consider the risks facing CSX at this point in time. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of CSX. If you are no longer interested in CSX, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
