Trade-Ideas: CSX (CSX) Is Today's Post-Market Laggard Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified CSX ( CSX) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified CSX as such a stock due to the following factors:

  • CSX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $140.4 million.
  • CSX is down 2.6% today from today's close.

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More details on CSX:

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. It offers traditional rail services, and transports intermodal containers and trailers. The stock currently has a dividend yield of 2.3%. CSX has a PE ratio of 14.2. Currently there are 11 analysts that rate CSX a buy, no analysts rate it a sell, and 12 rate it a hold.

The average volume for CSX has been 6.4 million shares per day over the past 30 days. CSX has a market cap of $26.6 billion and is part of the services sector and transportation industry. The stock has a beta of 1.47 and a short float of 1.9% with 3.06 days to cover. Shares are up 32.2% year to date as of the close of trading on Wednesday.

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

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CSX as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • CSX CORP has improved earnings per share by 6.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CSX CORP increased its bottom line by earning $1.79 versus $1.67 in the prior year. This year, the market expects an improvement in earnings ($1.80 versus $1.79).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 1.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 40.37% is the gross profit margin for CSX CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 17.43% trails the industry average.

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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