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 2.3%. By the end of trading, CSX fell $0.64 (-2.6%) to $23.96 on heavy volume. Throughout the day, 12,436,794 shares of CSX exchanged hands as compared to its average daily volume of 6,667,400 shares. The stock ranged in price between $23.80-$24.28 after having opened the day at $24.28 as compared to the previous trading day's close of $24.60. Other companies within the Transportation industry that declined today were: Gol Intelligent Airlines ( GOL), down 11.5%, Frontline ( FRO), down 9.2%, Genco Shipping & Trading ( GNK), down 6.9% and Eagle Bulk Shipping ( EGLE), down 6.8%.
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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 $25.8 billion and is part of the services sector. The company has a P/E ratio of 14.0, below the S&P 500 P/E ratio of 17.7. Shares are up 24.7% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate CSX a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates CSX as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, attractive valuation levels, good cash flow from operations, expanding profit margins 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.

On the positive front, Danaos Corporation ( DAC), down 3.4%, Globus Maritime ( GLBS), down 2.1% and Frozen Food Express Industries ( FFEX), down 2.0%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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