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CSX (CSX) Stock Jumps 6.1%: Will It Continue to Soar?

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CSX (CSX - Free Report) shares rallied 6.1% in the last trading session to close at $37.43. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 2% gain over the past four weeks.

CSX is being aided by the uptick in the freight scene. As a result, the company is benefiting from higher export coal volumes, international intermodal shipments and favorable pricing. CSX’s commitment to reward its shareholders even in the current uncertain times is encouraging. In February 2022, CSX announced a 7% hike in its quarterly dividend. In fact, owing to the tailwinds shares of CSX have gained 22.7% in a year's time.

This freight railroad is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +25.8%. Revenues are expected to be $3.41 billion, up 21.4% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For CSX, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CSX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

CSX is part of the Zacks Transportation - Rail industry. Canadian National (CNI - Free Report) , another stock in the same industry, closed the last trading session 1.8% higher at $126.92. CNI has returned 2% in the past month.

For CN, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.15. This represents a change of +18.6% from what the company reported a year ago. CN currently has a Zacks Rank of #3 (Hold).


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