Early Morning Activity Shows CSX (CSX) Down

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 pre-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 $153.3 million.
  • CSX traded 15,351 shares today in the pre-market hours as of 9:26 AM.
  • CSX is down 2.9% today from yesterday's close.

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More details on CSX:

CSX Corporation, together with its subsidiaries, provides rail-based transportation services in the United States and Canada. It offers traditional rail services, and transports intermodal containers and trailers. The stock currently has a dividend yield of 1.7%. CSX has a PE ratio of 20.5. Currently there are 5 analysts that rate CSX a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for CSX has been 7.8 million shares per day over the past 30 days. CSX has a market cap of $37.7 billion and is part of the services sector and transportation industry. The stock has a beta of 1.09 and a short float of 1.3% with 3.34 days to cover. Shares are up 31.8% 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, reasonable valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.83% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CSX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CSX CORP has improved earnings per share by 13.3% 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 $1.83 versus $1.79 in the prior year. This year, the market expects an improvement in earnings ($1.91 versus $1.83).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 7.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 39.34% 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 15.80% 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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