# Accumulate Shares Of CSX

I'm searching for good investments to make in 2013. In this article, we'll take a look at CSX (NYSE:CSX). We'll take a look at CSX's historical share price performance as well as its financial performance. Also, we'll evaluate CSX from the perspective of a technical analyst.

We'll use descriptive statistics by taking a sample of the population of monthly returns of CSX. At this point, we won't make any statistical inferences. Some of the sample statistics will include the arithmetic time-series mean, and the time-series median. Also, we'll take a look at a histogram. We'll also discuss the absolute frequencies, relative frequencies and cumulative relative frequencies of the return profile. Further, we'll determine the geometric mean return and the modal interval. The sample will consist of monthly returns between 2000 and 2012.

The arithmetic time-series mean monthly nominal return was 1.4 percent. The time-series median monthly nominal return was 3 percent.

Three of the nominal monthly returns were between -25 percent and -16 percent. Nineteen of the nominal monthly returns were between -16 percent and -7 percent. Fifty of the nominal monthly returns were between -7 percent and 2 percent. Sixty-nine of the nominal monthly returns were between 2 percent and 11 percent. Seventeen of the nominal monthly returns were between 11 percent and 20 percent.

Almost 32 percent of the nominal monthly returns were between -7 percent and 2 percent. Further, almost 44 percent of the nominal monthly returns were between 2 percent and 11 percent. Two percent of the nominal monthly returns were between -25 percent and -16 percent.

That said, almost 46 percent of the nominal monthly returns were between -25 percent and 2 percent. That means the other 54 percent of nominal monthly returns were 2 percent or higher. The modal interval was 2 percent to 11 percent.

The time-series geometric mean nominal monthly return or time-series nominal monthly compound growth rate was 1.06 percent. The nominal geometric mean monthly return on a bond equivalent basis was 12.72 percent. The nominal geometric mean monthly return on an effective annual yield basis was 13.5 percent.

Next, we'll compare some of those sample statistics with the sample statistics of the S&P 500 during the same period.

The arithmetic time-series mean monthly nominal return on the S&P 500 was 0.1 percent. The time-series median monthly nominal return on the S&P 500 was 1 percent.

The geometric time-series mean nominal monthly return or time-series nominal monthly compound growth rate on the S&P 500 was 0 percent. I'm sure you can calculate the nominal bond equivalent yield and nominal effective annual yield on the S&P: It was 0 percent.

Also, we'll add the Dow Jones transportation average to the comparison.

The nominal time-series arithmetic mean monthly return on the Dow Jones transportation average was 0.6 percent. The nominal time-series median monthly return was 1 percent and the nominal time-series geometric mean monthly return was 0.46 percent.

The nominal geometric mean monthly return on a bond equivalent basis was 5.52 percent. The nominal geometric mean monthly return on an effective annual yield basis was 5.66 percent.

Thus, CSX outperformed both indices between 2000 and 2012.

The sample standard deviation of monthly returns on CSX was 8 percent. The sample standard deviation of monthly returns on the S&P 500 was 5 percent. Finally, the sample standard deviation of monthly returns on the Dow Jones transportation average was 6 percent.

Further, CSX had the lowest coefficient of variation at 5.71. The S&P 500's coefficient of variation was 45.45 and the Dow Jones Transportation Average's was 9.09.

Also, CSX provided investors with better returns per unit of risk than the transportation average and the S&P 500.

CSX's operating revenue grew at a nominal compound annual growth rate of 6 percent between 2003 and 2011.

CSX's earnings from continuing operations grew at a nominal compound annual growth rate of 38 percent between 2003 and 2011.

CSX's quantity of employees declined at an annual compound rate of 2 percent.

In other words, since 2003, the firm has grown faster than the economy and done it while decreasing the number of employees.

CSX may continue to grow faster than the economy. Professional investors should monitor the firm's financial performance and position as CSX could continue to outperform the broader market.

The firm is valued at 1.69 times sales and 10.85 times trailing earnings.

Currently, CSX is in an intermediate-term down trend and a primary down trend. This could be a good time to start accumulating shares as the share price nears a support zone.