|Bid||76.90 x 900|
|Ask||76.91 x 900|
|Day's Range||76.81 - 77.40|
|52 Week Range||58.47 - 80.73|
|Beta (3Y Monthly)||1.38|
|PE Ratio (TTM)||18.80|
|Earnings Date||Jul 15, 2019 - Jul 19, 2019|
|Forward Dividend & Yield||0.96 (1.29%)|
|1y Target Est||81.69|
CSX’s (CSX) overall rail traffic fell 4% year-over-year to 121,665 railcars in Week 23 from 126,785 cars in Week 23 of the previous year. Five out of seven Class I railroad companies recorded lower volumes.
Two months ago, the owners of CSX Corporation (NASDAQ:CSX) stock were cheering. Despite tepid demand for rail-freight service, what the company described as a "broad-based" pricing increase led to a respectable 5% year-over-year increase in its top line in the first quarter. CSX stock price jumped 4% in one day, reaching new record highs in the process.Source: Shutterstock Not all of CSX's apparent pricing power, however, may actually be pricing power. Indeed, it may not be sustainable. Its customers are not only balking, but they're slowly abandoning CSX and turning to the trucking industry instead, despite its rising cost. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 More than anything though, rail customers are turning to regulators, who so far have been seemingly sympathetic to the complaints about the railroad industry's rising fees.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Customers Subsidizing Railroads' PSR WorkThe acronym "PSR," short for precision-scheduled railroading, sounds like a brilliant cost-culling idea. And, with the advent of wireless communications, PSR is now a very real possibility that the owners of CSX stock as well as Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC) shareholders have understandably cheered.Rail customers aren't cheering though, as much of the burden of adopting PSR has fallen, some say unfairly, on them.Case in point: Customers of many PSR-guided railroads are now charged fees if their freight isn't unloaded immediately after its arrival, rather than after the customer has had a reasonable amount of time to remove it. In some cases the customer may lack the necessary capacity to immediately unload its freight. In other cases, the rail yard itself may be the source of the bottleneck.Regardless of the reason, many rail-freight users feel unfairly rushed by the system.Moreover, at a two-day hearing that took place in late May, several railroad customers lodged official complaints about the issue with the Surface Transportation Board.The STB has the authority to step in, if need be. It can't outright control market shipping rates, but it does wield a great deal of influence on pricing, and it can put in place new rules that give rail customers the right to charge railroads fees when they are the source of the tie-up.Perhaps more alarming is the fact that the usually-aloof Surface Transportation Board has already become notably vocal on this particular matter. STB board member Martin Oberman commented at the recent meeting "What we're being told is it's an incentive to make you move faster. What it sounds like is it's an incentive for you to stop using the railroad."He added "You cannot be incentivized to roll time backwards." Waning Rail DemandIf the owners of CSX stock aren't concerned, they should be. These added fees are a key reason the carrier has been able to grow its top and bottom lines so well of late.Demand for rail services to-date this year is better than it was at this point a year ago, but that's a dubious victory. Usage of railroads last year in the United States was well below the levels of 2016 and 2017′, and this year's demand is also weaker than at the same time in 2016 and 2017.There's been no place to hide in the railroad sector. Demand for intermodal as well as for railcars is slumping, and total demand for rail-freight services is just as weak in Canada and Mexico.And the PSR-driven fees - high margin fees at that - aren't insignificant. Last year, fees accounted for more than 40% of CSX's 7.5% top-line growth.If the STB pushes back, the impact could prove to be problematic. The Bottom Line on CSX StockIt's certainly possible, of course, that the Surface Transportation Board is offering more lip service than planned relief for railroad customers.It's not an agency to be toyed with, however. It's got teeth, and it's not afraid to use them.And it may about to do just that. In a report provided to the STB in April by a task force charged with reviewing rail-rate oversight, the direction that pricing matters are going is clear. That is, major changes in pricing methods are being recommended to the board.It remains to be seen just how much the Surface Transportation Board will intercede, or if it will recognize that unreasonable fees are just a means of charging higher rates without labeling them a "rate increase,"As Palmer Logistics President Brett Mears noted last month, though, "I do think that the STB will continue with the investigation phase and ultimately will invoke rule making to relieve the burden to industry after overwhelming response to this hearing."That should at least concern anyone who owns CSX stock.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post Pricing Changes Could Hurt CSX Stock appeared first on InvestorPlace.
Union Pacific's (UNP) shareholder-friendly measures are encouraging. Additionally, an improvement in the operating ratio highlights the company's operational efficiency.
CSX Corporation (NASDAQ:CSX) received a lot of attention from a substantial price movement on the NASDAQGS over the...
While the market driven by short-term sentiment influenced by the accomodative interest rate environment in the US, increasing oil prices and optimism towards the resolution of the trade war with China, many smart money investors kept their cautious approach regarding the current bull run in the first quarter and hedging or reducing many of their […]
Downtrend in US Rail Traffic Persisted for 19th Consecutive Week(Continued from Prior Part)CSX’s rail traffic declinedCSX’s (CSX) overall rail traffic fell 5.8% YoY (year-over-year) to 113,033 railcars in Week 22 from 119,990 cars in Week 22 of
Growth at a reasonable price or GARP strategy helps investors gain exposure to stocks that have impressive prospects and are trading at a discount.
The federal government is spending $17.6 million to relieve traffic delays caused by freight trains traversing San Marco. The funds cover half the cost of a project that will address trains that block seven intersections for as long as three hours, including access to Baptist Medical Center. The project will also improve freight rail traffic in and out of Florida.
CSX Corp NASDAQ/NGS:CSXView full report here! Summary * Perception of the company's creditworthiness is positive * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for CSX with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding CSX totaled $11.13 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. CSX credit default swap spreads are near the lowest level of the last three years and indicate the market's continued positive perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
RailUSA LLC, an freight railroad and rail services company based in Boca Raton, announced on Monday that it acquired a 430-mile rail line from CSX Corporation. The rail line, currently called the Florida Gulf & Atlantic Railroad (FG&A), operates between Baldwin and Pensacola, Florida, with a connection to Attapulgus, Georgia. CSX Corporation (Nasdaq: CSX) is a holding company focused on North American rail transportation and real estate.
Editor's note: This story was previously published in March 2019. It has since been updated and republished.Will it, or won't it? Will the war of tariffs being waged between the United States and China finally come to a close with an amicable solution?Still, it's not a stretch to suspect whatever resolution is in the works will wind things back to the way they were early in the Trump Presidency. That means whichever stocks suffered because of stymied trade should find relief, while those names that were boosted by tough tariffs may also bump into a new headwind.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 6 Big Dividend Stocks to Buy as Yields Plunge There's also a good-sized group of stocks that may peel back in response to encouraging headlines about tariffs due to the oft-seen "sell the news" effect.To that end, here's a rundown of the top nine trade war stocks to sell now that it looks like the trade war is near an end. Tesla (TSLA)Source: Shutterstock It was already fighting a losing battle, to be clear. The unveiling of an actual $35,000 version of the Model 3 had already sent Tesla (NASDAQ:TSLA) to multi-week lows, once investors realized the cost-cutting lengths to which the company had to go to in order to manufacture a car that cheap. But, an end to the tariff tiff could make matters even worse for TSLA stock.It seems counterintuitive. CEO Elon Musk already mentioned plans to make Model 3 cars in the United States to ship to China. The removal of the tariff on them would make them easier to sell there … at least until its Model 3 production line in China is activated later this year.That's not the concern, however. Although it could take years if not months to be noticed, the free flow of components and competing cars from domestic as well as foreign EV makers will only bolster electric competition for Tesla in the United States. Even the newest Chinese EV darling Nio (NYSE:NIO) says its long-term goal is to deliver automobiles to the U.S., while China's Kandi has already received permission to do so. Amazon.com (AMZN)Source: Shutterstock It's another counterintuitive idea. Amazon (NASDAQ:AMZN), which often offers its merchandise at the lowest retail cost in North America, relies on low-cost, Chinese-made goods to sell. The evaporation of import tariffs will allow it to continue selling bargain-priced merchandise.At another time and in another scenario, an end to a trade war might be bullish for AMZN stock for that reason. Right now, however, it could prove problematic. * 7 Stocks to Buy for Monster Growth Brick-and-mortar rival Walmart (NYSE:WMT) has finally figured out a formula to compete with Amazon online. Last quarter's e-commerce sales were up 37%, extending a solid streak of big double-digit growth.With the same access to the same tariff-free goods, lower-cost merchandise would actually serve Walmart more than it would Amazon.com right now. VanEck Vectors Vietnam ETF (VNM)Source: Shutterstock It went largely unnoticed, while investors were jockeying to figure out which stocks affected by trade war rhetoric would be hit the hardest, but what proved to be trouble for China also ended up being a boon for other U.S. trade partners.Chief among those beneficiaries was Vietnam. While factories slowed if not outright shuttered in China, Vietnam's GDP improved by 7.1% last year -- the best year since 2007 -- as its manufacturing machine picked up the pace.Surprisingly, that economic growth hasn't proven particularly bullish for the VanEck Vectors Vietnam ETF (NYSEARCA:VNM). Despite the backdrop, investors have been concerned about the ripple effect of China's slowing economy. Nevertheless, a revving of China's economic engine would cast a bearish shadow on Vietnam's nascent growth. Micron Technology (MU)Source: Shutterstock Micron Technology (NASDAQ:MU) and its computer-memory making peers have been facing headwinds much bigger than a trade war. It, along with SK Hynix and Samsung Electronics (OTCMKTS:SSNLF), have been dealing with a supply glut that has gouged the price of the RAM/DRAM memory chips needed to make your electronic devices work. * 7 Safe Stocks to Buy for Anxious Investors And yet, in most regards, Micron is still one of the most noteworthy trade war stocks investors are watching. Not only does half of its revenue come from Chinese buyers in need of its tech, but the company also claims China has been stealing trade secrets and intellectual property, putting Micron at a disadvantage.While at least some of the political pushback has been rooted in IP theft, of the scant details heard thus far about the discussions between President Trump and Chinese leader Xi Jinping don't appear to address much in the way of patents and the protection of technological know-how. Boyd Gaming (BYD)Source: Ace Via on FlickrIt's one of several trade war stocks that's benefitted more from psychology than demonstrable business growth (although the stock's still been a relatively disappointing performer). But, to the extent Boyd Gaming (NYSE:BYD) was boosted by the advent of the trade war, the end of the tariff spot could take the wind out of itself.The underpinning of the theory has everything to do with Macau … China's gambling enclave where U.S.-based gambling giants like Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN) have a presence, and where Boyd doesn't.It matters. Although the actual impact on gaming was unclear, the premise likely cast a favorable light on BYD, while working against Macau-exposed players. Should the political tensions end, a reversal of that mindset could push outfits like Wynn and Las Vegas Sands back in favor, at the expense of Boyd. Nokia (NOK)Source: Shutterstock It's a misnomer to think all smartphones, and smartphone tech, is ultimately made in China. Nokia (NYSE:NOK) is based in Finland, out of the trade war's theater, and circumventing the targeting of China's Huwaei and ZTE. Tariffs made Nokia's phones price-competitive in the U.S. again.The matter goes well beyond phones though and extends into the infrastructure that will eventually power 5G connectivity. The U.S. government is wary of relying on any Chinese telecom tech, for security reasons. And, as Jim Cramer asked so bluntly, "If you're a telco carrier and warned off of Huawei and ZTE, where are you going to go buy your 5G technology?" * 7 Stocks to Buy for Over 20% Upside Potential The answer -- at least one of them -- was Nokia. Indeed, NOK stock has been an impressive performer for months now for this very reason.If any deal between China and the U.S. is relatively lenient on China's telecom technology powerhouses though, Nokia could wind up in the same backseat it was in just a year ago. Archer Daniels Midland (ADM)Source: GothamNurse Via FlickrThe advent of the tariff war has proven anything but bullish for shares of Archer Daniels Midland (NYSE:ADM), but not because it has created a headwind. Indeed, Archer's second-quarter operating profit last year more than tripled year-over-year, and the company topped estimates for its third quarter as well."In this environment, Archer has done a better job of executing," explained Morningstar analyst Seth Goldstein following its third-quarter report, tacitly acknowledging that ADM has the scale and reach to drive profits that small independent players don't.The company's consistent success hasn't helped the stock much. It's down nearly 5% so far this year. An end to the trade war, however, could still be interpreted as problematic given that much of last year's pricing power was also rooted in poor crop output in South America.In the meantime, nearly a year removed from the start of the tit-for-tat tariffs, the marketplace has likely found ways around Archer Daniels Midland's firm pricing. CSX (CSX)Source: Don O'Brien via FlickrRailroad name CSX (NASDAQ:CSX) is another one of the trade war stocks that has been tough to pin down. On the one hand, more self-reliance on domestic production of commodities drives demand for coast-to-coast shipping. On the other hand, much of the shipping of goods within the United States was of goods delivered from China.So far the impact of the trade war appears to be net-neutral, in terms of demand for freight services. * 7 High-Yield REITs to Buy (Even When the Market Tanks) But, with the stock up 23% this year thanks to perceived demand growth -- it's mostly higher shipping prices driving rail delivery revenue higher -- the routing of more commodity purchases through maritime ports would easily lead investors to doubt the continued strength of CSX stock. Dollar General (DG)Source: Shutterstock Finally, add Dollar General (NYSE:DG) to your list of trade war stocks to sell that could be upended by an apparent end to the bickering.It's a scenario not unlike the one CSX stock is in. That is, psychology more than any other factor has driven DG stock higher to the tune of 41% over the course of the past twelve months, largely because the retailer was touted as a means of sidestepping the impact of the trade war. Not only is 100% of its revenue generated in the U.S., but it benefits from any price hikes bigger rival Walmart is forced to impose.All those tailwinds will abate, however, if tariffs are wiped away … or even just dialed back.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Big Data Stocks That Deserve a Closer Look * 7 Best Energy Funds to Outperform the Market * 5 Blue-Chip Stocks Ready to Rise Compare Brokers The post 9 Trade War Stocks to Sell on U.S.-China Deal News appeared first on InvestorPlace.
US Rail Traffic Downtrend Persisted for the 18th Straight Week(Continued from Prior Part)CSX’s rail traffic fellCSX’s (CSX) overall rail traffic fell 6.2% YoY (year-over-year) to 121,772 railcars in Week 21 from 129,865 railcars in Week 21 of
After a two-day hearing highlighting impacts of railroad fees, rail customers expect regulatory action.
Investment firm Mantle Ridge is reportedly making moves to potentially buy Philadelphia-based Aramark.
Rise in overall volumes, improvement in operating ratio and higher revenues across majority of Kansas City Southern's (KSU) segments are aiding the company.
CSX Corporation (NASDAQ: CSX) said Tuesday afternoon CFO and executive vice president Frank Lonegro will leave the company after 19 years of service. CSX offered "very few details" relating to Lonegro's departure, but it was made clear it's not due to any disagreements over financial direction, policy or accounting concerns, Shanker wrote in a note.
JACKSONVILLE, Fla., May 29, 2019 -- CSX Corporation (NASDAQ: CSX) President and Chief Executive Officer James M. Foote will address the 10th Annual Deutsche Bank Global.
CSX Corp. said late Tuesday Chief Financial Officer Frank A. Lonegro, a 19-year veteran with the railway company, has departed. CSX has appointed Kevin S. Boone, its marketing executive, its interim CFO and has started a search for a new permanent executive. Shares of CSX were flat in the extended session after ending the regular trading day down 0.5%.
CSX Corporation (CSX) today announced the departure of executive vice president and chief financial officer, Frank A. Lonegro. Jim Foote, president and chief executive officer, said, “On behalf of the Board and all CSX employees, I would like to thank Frank for his leadership, dedication and contributions to CSX for the past 19 years. The company has initiated a search for a new chief financial officer and appointed Kevin Boone as interim chief financial officer.
Orlando Health wants to change the use of a swath of land on its downtown campus to help it expand. The $3.4 billion nonprofit health care provider filed plans with the city of Orlando to change the zoning of about 5.26 acres spread over 13 parcels of land south of Lake Beauty from medical office and mixed-use to urban activity, which would match the zoning of the three hospitals already on the campus. Currently, the land up for rezoning features five office buildings which total 68,842 square feet, as well as parking lots and vacant land.