CSX Corp (CSX): Today's Featured Services Winner

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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.1%. By the end of trading, CSX rose 87 cents (4.2%) to $21.68 on heavy volume. Throughout the day, 18.1 million shares of CSX exchanged hands as compared to its average daily volume of 9.6 million shares. The stock ranged in a price between $21.06-$21.83 after having opened the day at $21.25 as compared to the previous trading day's close of $20.81. Other companies within the Services sector that increased today were: EZCorp ( EZPW), up 11.8%, Newlead Holdings ( NEWL), up 11.8%, Industrial Services of America ( IDSA), up 10.1%, and FreeSeas ( FREE), up 9.5%.
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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 $21.57 billion and is part of the transportation industry. The company has a P/E ratio of 11.7, below the S&P 500 P/E ratio of 17.7. Shares are up 6% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate CSX a buy, no analysts rate it a sell, and 13 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.

On the negative front, QKL Stores ( QKLS), down 16.3%, Daegis ( DAEG), down 10%, Excel Maritime Carriers ( EXM), down 9.3%, and China HGS Real Estate ( HGSH), down 9.2%, were all laggards within the services sector with Apollo Group ( APOL) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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