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CSX (CSX) Stock Moves -1.75%: What You Should Know

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CSX (CSX - Free Report) closed the most recent trading day at $64.68, moving -1.75% from the previous trading session. This change was narrower than the S&P 500's daily loss of 2.08%. At the same time, the Dow lost 2.11%, and the tech-heavy Nasdaq lost 2.27%.

Heading into today, shares of the freight railroad had lost 8.85% over the past month, lagging the Transportation sector's loss of 8% and the S&P 500's loss of 3.6% in that time.

CSX will be looking to display strength as it nears its next earnings release, which is expected to be January 15, 2019. On that day, CSX is projected to report earnings of $1 per share, which would represent year-over-year growth of 56.25%. Meanwhile, our latest consensus estimate is calling for revenue of $3.14 billion, up 9.51% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.81 per share and revenue of $12.25 billion. These totals would mark changes of +65.65% and +7.34%, respectively, from last year.

Any recent changes to analyst estimates for CSX should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CSX currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that CSX has a Forward P/E ratio of 17.26 right now. For comparison, its industry has an average Forward P/E of 16.61, which means CSX is trading at a premium to the group.

It is also worth noting that CSX currently has a PEG ratio of 1.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Rail was holding an average PEG ratio of 1.36 at yesterday's closing price.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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