CSX Corp (CSX): Today's Featured Transportation 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 Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day up 0.8%. By the end of trading, CSX rose 35 cents (1.5%) to $23.34 on average volume. Throughout the day, 8.5 million shares of CSX exchanged hands as compared to its average daily volume of 9.1 million shares. The stock ranged in a price between $23.02-$23.48 after having opened the day at $23.04 as compared to the previous trading day's close of $22.99. Other companies within the Transportation industry that increased today were: Paragon Shipping ( PRGN), up 17.6%, YRC Worldwide ( YRCW), up 12.5%, Global Ship Lease ( GSL), up 11.9%, and Excel Maritime Carriers ( EXM), up 9.8%.
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CSX Corporation, together with its subsidiaries, provides rail-based transportation services. It offers traditional rail services, and transports intermodal containers and trailers. CSX has a market cap of $23.18 billion and is part of the services sector. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7. Shares are up 16.5% year to date as of the close of trading on Friday. 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, increase in stock price during the past year 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, FreeSeas ( FREE), down 9.7%, Diana Containerships ( DCIX), down 5.4%, China Southern Airlines Company ( ZNH), down 4.3%, and China Eastern Airlines Corporation ( CEA), down 3.5%, were all laggards within the transportation industry with United Continental Holdings ( UAL) being today's transportation industry laggard.

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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