Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
CSX (
CSX) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 1.8%. By the end of trading, CSX fell 22 cents (-1.1%) to $19.37 on average volume. Throughout the day, 8.2 million shares of CSX exchanged hands as compared to its average daily volume of 8.4 million shares. The stock ranged in price between $19.20-$19.67 after having opened the day at $19.58 as compared to the previous trading day's close of $19.59. Other companies within the Transportation industry that declined today were:
Frozen Food Express Industries (
FFEX), down 41%,
Safe Bulkers (
SB), down 25.5%,
DryShips (
DRYS), down 19.7%, and
DS Torm (
TRMD), down 15.1%.
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CSX Corporation, together with its subsidiaries, provides rail-based transportation services. It offers traditional rail service and the transport of intermodal containers and trailers. CSX has a market cap of $20.52 billion and is part of the services sector. The company has a P/E ratio of 11.1, below the S&P 500 P/E ratio of 17.7. Shares are down 5.5% year to date as of the close of trading on Wednesday. Currently there are 16 analysts that rate CSX a buy, no analysts rate it a sell, and nine rate it a hold.
TheStreet Ratings rates CSX as a
buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, growth in earnings per share, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider
iShares Dow Jones Transportation (
IYT) while those bearish on the transportation industry could consider
ProShares UltraShort Industrials (
SIJ).
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