CSX: A Great Choice For Value Investors Today

(15min)

Summary

  • CSX Corp. is undervalued with strong growth potential, highlighted by solid 3Q 2024 results despite challenges like storms and falling coal prices.
  • The company’s focus on efficiency, safety, and cost management has improved operating margins and safety scores, with a healthy balance sheet and robust cash flow.
  • In my opinion, CSX looks way stronger than its international competitors such as Russia's Globaltrans and China's Daqin Railway, and isn't lagging behind its US rivals.
  • Despite short-term revenue concerns, CSX is poised for long-term growth through higher volumes, service excellence, and potential acquisitions, making it a value pick.
  • I expect CSX to continue growing. The stock is potentially undervalued compared to its peers, making it a favorable entry point for value investors. CSX is a "Buy"
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Close up detail of railway line

Monty Rakusen

My Thesis

CSX Corp. (NASDAQ:CSX) provides rail, intermodal, and rail-to-truck transportation; its subsidiary, CSX Transportation, operates a 20,000-mile rail system across the east coast of the United States, connecting 26 states, D.C., and two Canadian provinces.

In

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CSX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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