Trade-Ideas: CSX (CSX) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified CSX as such a stock due to the following factors:
- CSX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $209.0 million.
- CSX is up 2.1% today from today's close.
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More details on CSX:
CSX Corporation, together with its subsidiaries, provides rail-based transportation services in the United States and Canada. It offers traditional rail services, and transports intermodal containers and trailers. The stock currently has a dividend yield of 2.7%. CSX has a PE ratio of 14. Currently there are 10 analysts that rate CSX a buy, no analysts rate it a sell, and 8 rate it a hold.
The average volume for CSX has been 8.6 million shares per day over the past 30 days. CSX has a market cap of $26.3 billion and is part of the services sector and transportation industry. The stock has a beta of 1.21 and a short float of 1% with 1.36 days to cover. Shares are down 24.6% year-to-date as of the close of trading on Monday.
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Analysis:
rates CSX as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations, growth in earnings per share and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The debt-to-equity ratio is somewhat low, currently at 0.87, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has slightly increased to $930.00 million or 8.51% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.55%.
- CSX CORP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CSX CORP increased its bottom line by earning $1.93 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $1.93).
- 42.02% is the gross profit margin for CSX CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.25% trails the industry average.
- You can view the full CSX Ratings Report.
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