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CSX (CSX) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, CSX (CSX - Free Report) closed at $28.89, marking a +1.33% move from the previous day. This change outpaced the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the freight railroad had lost 12.44% in the past month. In that same time, the Transportation sector lost 8.76%, while the S&P 500 lost 6.59%.

CSX will be looking to display strength as it nears its next earnings release, which is expected to be July 20, 2022. In that report, analysts expect CSX to post earnings of $0.47 per share. This would mark year-over-year growth of 17.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.65 billion, up 22.05% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.83 per share and revenue of $14.4 billion. These totals would mark changes of +17.31% and +15%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CSX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.55% higher within the past month. CSX is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, CSX currently has a Forward P/E ratio of 15.57. This valuation marks a discount compared to its industry's average Forward P/E of 17.95.

Meanwhile, CSX's PEG ratio is currently 1.53. 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 1.82 at yesterday's closing price.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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