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CSX Stock Rises More Than 24% in a Year's Time: Here's Why
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Shares of CSX Corporation (CSX - Free Report) have rallied 24.9% in a year’s time, outperforming the industry’s 20.2% increase, primarily owing to its commitment to reward shareholders and the gradual recovery in its volumes.
Let’s delve deeper.
Despite coronavirus-led headwinds, CSX’s commitment to reward its shareholders boosted shares of the company. In the first nine months of 2020, it repurchased 10 million shares for $664 million. In October, CSX’s board approved a new share buyback program worth $5 billion. This is in addition to approximately $1.1 billion already remaining under the existing share repurchase program. Moreover, in February, the company had hiked its dividend by 8%.
Additionally, gradual recovery in CSX’s volumes is expected to have lifted its shares. With the economy recovering from the coronavirus-induced slump, intermodal volumes rebounded in the third quarter of 2020. After an 11% year-over-year decline in the second quarter, volumes increased 7% in the third quarter with both domestic and international shipments increasing as a result of tightening truck capacity among other factors. As economy recovery picks up pace, volumes across all segments are expected to see improvement.
Shares of ArcBest, Ryder and Herc Holdings have gained more than 54%, 15% and 34% in a year’s time, respectively.
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Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration. Download Marijuana Moneymakers FREE >>
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CSX Stock Rises More Than 24% in a Year's Time: Here's Why
Shares of CSX Corporation (CSX - Free Report) have rallied 24.9% in a year’s time, outperforming the industry’s 20.2% increase, primarily owing to its commitment to reward shareholders and the gradual recovery in its volumes.
Let’s delve deeper.
Despite coronavirus-led headwinds, CSX’s commitment to reward its shareholders boosted shares of the company. In the first nine months of 2020, it repurchased 10 million shares for $664 million. In October, CSX’s board approved a new share buyback program worth $5 billion. This is in addition to approximately $1.1 billion already remaining under the existing share repurchase program. Moreover, in February, the company had hiked its dividend by 8%.
Additionally, gradual recovery in CSX’s volumes is expected to have lifted its shares. With the economy recovering from the coronavirus-induced slump, intermodal volumes rebounded in the third quarter of 2020. After an 11% year-over-year decline in the second quarter, volumes increased 7% in the third quarter with both domestic and international shipments increasing as a result of tightening truck capacity among other factors. As economy recovery picks up pace, volumes across all segments are expected to see improvement.
Zacks Rank & Key Picks
CSX carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are ArcBest Corporation (ARCB - Free Report) , Ryder System, Inc. (R - Free Report) and Herc Holdings Inc. (HRI - Free Report) . While Ryder carries a Zacks Rank #2 (Buy), ArcBest and Herc Holdings sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of ArcBest, Ryder and Herc Holdings have gained more than 54%, 15% and 34% in a year’s time, respectively.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>