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

CSX (CSX) closed the most recent trading day at $35.95, moving +1.81% from the previous trading session.

This story originally appeared on Zacks

In the latest trading session, CSX (CSX) closed at $35.95, marking a +1.81% move from the previous day. This move outpaced the S&P 500's daily gain of 1.78%. Meanwhile, the Dow gained 1.61%, and the Nasdaq, a tech-heavy index, added 0.95%.

- Zacks

Heading into today, shares of the freight railroad had lost 2.05% over the past month, outpacing the Transportation sector's loss of 3.91% and the S&P 500's loss of 2.63% in that time.

CSX will be looking to display strength as it nears its next earnings release. On that day, CSX is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 20%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.32 billion, up 17.68% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.55 per share and revenue of $12.41 billion, which would represent changes of +27.05% and +17.23%, respectively, from the prior year.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% lower. CSX is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CSX is holding a Forward P/E ratio of 22.72. For comparison, its industry has an average Forward P/E of 23.31, which means CSX is trading at a discount to the group.

We can also see that CSX currently has a PEG ratio of 1.9. 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 2.12 at yesterday's closing price.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 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.

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

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