In the latest trading session, CSX (CSX - Free Report) closed at $70.37, marking a +1.85% move from the previous day. This change outpaced the S&P 500's 0.63% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.64%.
Heading into today, shares of the freight railroad had lost 7.58% over the past month, lagging the Transportation sector's loss of 6.05% and the S&P 500's loss of 4.95% in that time.
Wall Street will be looking for positivity from CSX as it approaches its next earnings report date. This is expected to be January 15, 2019. The company is expected to report EPS of $1, up 56.25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.14 billion, up 9.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.80 per share and revenue of $12.25 billion. These totals would mark changes of +65.22% and +7.34%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CSX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.64% higher within the past month. CSX is currently a Zacks Rank #1 (Strong Buy).
Investors should also note CSX's current valuation metrics, including its Forward P/E ratio of 18.19. Its industry sports an average Forward P/E of 18.15, so we one might conclude that CSX is trading at a premium comparatively.
Meanwhile, CSX's PEG ratio is currently 1.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CSX's industry had an average PEG ratio of 1.51 as of yesterday's close.
The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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.
To follow CSX in the coming trading sessions, be sure to utilize Zacks.com.