CSX Corp (CSX): Today's Featured Transportation Laggard

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 1.5%. By the end of trading, CSX fell 39 cents (-1.7%) to $22.13 on average volume. Throughout the day, 9.2 million shares of CSX exchanged hands as compared to its average daily volume of 9.6 million shares. The stock ranged in price between $22.08-$22.56 after having opened the day at $22.47 as compared to the previous trading day's close of $22.52. Other companies within the Transportation industry that declined today were: DS Torm ( TRMD), down 14.7%, Hawaiian Holdings ( HA), down 13%, Eagle Bulk Shipping ( EGLE), down 11.1%, and Seanergy Maritime Holdings ( SHIP), down 9.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $23.02 billion and is part of the services sector. The company has a P/E ratio of 12.5, below the S&P 500 P/E ratio of 17.7. Shares are up 13.1% 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, expanding profit margins, notable return on equity and increase in stock price during the past year. 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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Can CSX Catch Up to the Other Rails?

First Leg Down of United Tech; Hurricanes -- Jim Cramer's Top Thoughts

Cramer: Hurricanes Will Break the Decline of the Auto and Housing Industries

Trifecta Stocks: Bracing for the Stock Market's Own Hurricane Season

Detours Don't Deter Transports