|Bid||169.37 x 3200|
|Ask||176.00 x 800|
|Day's Range||172.43 - 173.97|
|52 Week Range||128.08 - 180.02|
|Beta (3Y Monthly)||1.16|
|PE Ratio (TTM)||21.12|
|Earnings Date||Jul 18, 2019|
|Forward Dividend & Yield||3.52 (2.02%)|
|1y Target Est||184.72|
J.B. Hunt's (JBHT) top line in second-quarter 2019 increase year over year, courtesy of the Dedicated Contract Services segment's impressive performance.
Tropical Depression Barry — the remnants of Hurricane Barry — is still moving slowly through the South. Some people are dealing with more flooding in the South as Tropical Depression Barry trudges through the region. The storm will head toward the mid-South today, producing heavy rainfall and flooding from southern Louisiana to Mississippi, Arkansas, western Tennessee and the Missouri boot heel.
On Tuesday, CSX (CSX) is scheduled to report its second-quarter earnings results. Analysts expect the company to report an adjusted EPS of $1.11.
CSX Corporation (NYSE:CSX) is slated to report its earnings on Tuesday after the closing bell. Analysts who follow CSX stock, on average, expect the company's earnings and revenue to rise year-over-year.Source: Shutterstock CSX has benefited from tremendous growth, especially over the last three years. But given the economic headwinds the company could face going forward, the railroad could see its bull run end and partially reverse course. Although CSX stock should serve investors well over the long-term, they should probably avoid buying it ahead of the company's earnings. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond CSX's Earnings, Revenue Likely IncreasedAnalysts on average forecast that the Jacksonville, Florida-based rail company earned $1.11 per share of CSX stock in the second quarter. If the company meets that estimate, that means its EPS rose nearly 10% year-over-year. Analysts' consensus Q2 top-line estimate is $3.16 billion, a 1.7% increase from the $3.1 billion CSX reported in Q2 of 2018.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGiven these numbers and the performance of CSX in recent years, this company deserves more attention than it's gotten. Railroad stocks boomed in the 19th century, when they acted as the tech equities of their day. Today, cutting-edge tech looks much different, and rail transport typically does not generate much excitement. CSX stock is not the next Tesla (NASDAQ:TSLA) stock. However, investors should pay attention to this sector. CSX Offers Profit Growth and Dividend IncreasesIn early 2016, the CSX stock price stood at just over $21 per share. Today, CSX stock trades at over $77 per share. This rally has happened for the right reasons: rising profits and improving cash flows. As a result, the price-earnings (PE) ratio of CSX stock, which stood at around 13.5 a few years ago, has increased to about 18.8 now.Despite this still-low multiple, analysts, on average, expect CSX's profit to rise 13% this year and 9.7% in 2020. Both Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC) offer slightly higher growth and have slightly higher PE ratios. Still, with these metrics, CSX stock looks like it will be a winner over the long-term.The company's track record has also been strong when it comes to its dividend. With a yield of about 1.25%, investors will probably not buy CSX stock for the payout. However, since 2005, the company has increased its dividend almost every year, making it very reliable in that area. Watch CSX's Forward GuidanceDespite the recent strength of CSX's results (or maybe because of it), investors should pay careful attention to its forward guidance. The current economic expansion has reached its 11th year. Moreover, the ongoing trade war with China could disrupt the raw material exports on which CSX depends.This might explain why the company provided lower than expected full-year revenue guidance in January. Further signs of slowing could end the bull run of CSX stock, which has benefited those who have owned the stock over the long-term. With its low costs compared to other types of freight, I expect rail transport to remain a fixture for a long time to come. However, I do not recommend buying this name going into earnings. The Bottom Line on CSX StockDespite the stellar performance of CSX stock, investors should take a cautious view of the equity going into earnings. CSX has beaten consensus earnings estimates in each of the last four quarters. Consequently, I would expect its EPS to come in higher than the expected $1.11 per share.However, I think investors should focus on its guidance. In recent months, consensus expectations for its annual revenue growth has dropped from high-single-digit-percentage levels to the low-single-digits. In light of the current economic conditions, CSX could cut its guidance further.I do not think the company's results will change the long-term bull case on CSX stock. Trading at roughly 18 times earnings and delivering (almost) double-digit-percentage EPS growth, CSX remains reasonably priced. However, since the equity could easily drop from these levels, I think traders should stay on the sidelines on CSX stock for now.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Going Into Earnings, Approach CSX Stock With Caution appeared first on InvestorPlace.
Results from two major U.S. railroads next week are likely to attract more scrutiny than usual as investors look for signs of how deeply U.S. President Donald Trump's multi-front trade war is affecting freight companies and the wider economy. Among those reporting as the second quarter earnings season kicks off next week are Union Pacific Corp on Thursday and Kansas City Southern on Friday, amid worries that new U.S. import tariffs threatened by the Trump administration could also herald weakening demand for goods movers, including truckers, container companies and package carriers. The S&P 500, which crossed the 3,000 mark for the first time this week, has seesawed between record highs and selloffs in recent months on increasing U.S.-China trade acrimony and concerns about a U.S. economic slowdown.
Union Pacific's (NYSE: UNP) intermodal rail service saw average speeds sink to a two-year low in the second quarter, with shippers and intermodal marketing companies reporting extensive delays in getting their freight from the railroad. Union Pacific's Chief Executive Lance Fritz said that overall volumes are tracking 4 percent lower in the second quarter. Fritz blamed the poor weather and trade uncertainty as the main reasons for the lower volume.
Union Pacific (UNP) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
OMAHA, Neb. , July 11, 2019 /PRNewswire/ -- You are invited to listen to Union Pacific Corporation's (NYSE: UNP) second quarter 2019 earnings release presentation that will be broadcast live over the Internet ...
Union Pacific Corp NYSE:UNPView full report here! Summary * Perception of the company's creditworthiness is positive * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for UNP with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting UNP. Money flowETF/Index ownership | NeutralETF activity is neutral. The net inflows of $5.32 billion over the last one-month into ETFs that hold UNP are not among the highest of the last year and have been slowing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Industrials sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | PositiveThe current level displays a positive indicator. UNP credit default swap spreads are near the lowest level of the last one year and indicate improvement in the market's perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.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.
Could Union Pacific Corporation (NYSE:UNP) be an attractive dividend share to own for the long haul? Investors are...
CSX (NASDAQ:CSX) stock has been on a tear over the past few years. Shares in the railroad stock are up approximately 27% year-to-date. With strong operating margins, favorable economic conditions and a history of disciplined capital allocation, CSX stock has been a solid name to own for the past decade.Source: Shutterstock But with shares treading between $75 and $80 per share since April, will investors see a continued increase in the CSX stock price? While there are few red flags at the moment, a cooling U.S. economy may mean an end to continued earnings growth.Read on to see why CSX Corp may be sell for now:InvestorPlace - Stock Market News, Stock Advice & Trading Tips CSX Continues to Squeeze Out Earnings GrowthFor Q1 2019, revenues rose 5% from Q1 2018. With the company able to keep costs constant, operating income rose 17%. Revenue increases from transporting agricultural/food products, forest products, chemicals and coal offset declining intermodal transport revenues.Thanks to price increases, the company was able to generate revenue growth from flat volume. This indicates that while CSX (like the other Class I railroads) have been able to increase revenue per unit, it could be a sign that the company has reached the limit in terms of revenue growth.But the company has a strong track record of maintaining low operating costs. Among the Class I railroads, CSX has the lowest operating ratio (operating expenses as a percentage of revenue). * 10 Stocks That Should Be Every Young Investor's First Choice With additional layoffs expected in 2019, CSX may be able to bring down costs further. This means even with projections of low single-digit revenue growth, the company could continue to produce satisfactory earnings growth. CSX Stock Price Vulnerable to Coal DemandBased on a May 2019 investor presentation, coal makes up 19% of the company's revenues. Coal revenues for Q1 2019 were up 7% year-over-year.Continued reduction in coal demand could materially impact the CSX stock price. With the EIA's short-term energy outlook showing continued consumption declines (567 million short tons in 2020, down from 687 million in 2018), this trend does not show any signs of reversing.The counter to this is heavy demand from the domestic steel industry. International demand for American coal exports also helps to support the railroad's coal business. But any negative impact to these customer bases (downturn in economy hurting steel demand, reduced global use of coal) would affect the company's revenue. CSX Trades at Similar Valuation Levels to PeersCSX stock currently trades at a trailing price-to-earnings ratio of 19.25, and a forward P/E of 16.46. There is little variance between its valuation, and the valuation of its peers: * Canadian National Railway (NYSE:CNI): 16.13 trailing P/E, 18.04 forward P/E * Kansas City Southern (NYSE:KSU): 21.63 trailing P/E, 16.34 forward P/E * Norfolk Southern (NYSE:NSC): 20.04 trailing P/E, 16.52 forward P/E * Union Pacific (NYSE:UNP): 21.01 trailing P/E, 16.79 forward P/EHigh operating margins and a strong economy have allowed these old-line companies to achieve fairly high valuations. But with a 10-year long bull market due for a correction, is it smart to get into CSX stock today? Despite a maxed out valuation, thanks to smart capital allocation, the company could continue to drive returns to shareholders. Disciplined Capital Allocation a Strong Catalyst for CSX Stock PriceWhile CSX's valuation appears stretched, its disciplined capital allocation continues to be a strong catalyst. Based on statements from the investor presentation mentioned earlier, the company practices asset efficiency when it comes to capital expenditures.The company's focus is on identifying capital investments that generate sufficient returns, as well as right-sizing their locomotive and car fleet. This has paid off, as CSX is able to move almost all of their net income down to the free cash flow line.In 2018, the company reported a 97% conversion of net income to FCF. Management believes they can move this further, with a projected 2019 FCF conversion ratio of 99%. * 7 Retail Stocks to Buy That Are Down in 2019 This means more money for buybacks. The company bought back $5.4 billion worth of shares in 2018, and has approved a buyback program for $5 billion more in 2019.While the dividend yield is not high (1.22%), CSX has increased its dividend about 10% per year for the past decade. A low yield may reduce interest from income investors, but the share buyback strategy is a smart way to deliver value to shareholders.Share buybacks are a more tax efficient means to return capital. They also boost the company's earnings-per-share, a benefit for the CSX stock price. Bottom Line: Do Not Expect CSX Stock to OutperformCSX has seen a tremendous run in the past ten years. Shares have risen from ~$11/share in July 2009 to nearly $80 per share today. But with the U.S. economy cooling down, CSX's valuation continuing to be higher-than-normal, and conservative growth prospects, it is unlikely investors will see similar returns going forward.But for a long-term investor, the stock may be a buy. The company's strong FCF conversion ratio enable it to continue an aggressive buyback strategy. Coupled with continued dividend growth, and the stock may provide sufficient returns. But as a short-term investment? Look elsewhere.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Are Down in 2019 * 7 of the Best SPDR ETFs -- Besides SPY and GLD * 5 Dividend Stocks to Buy From Across the Globe The post CSX Stock Is Finally Due for A Correction After Its Massive Climb appeared first on InvestorPlace.
The region is finally getting enough of a break from Mother Nature to let barges resume movement up and down the Mississippi River and its tributaries, from the Midwest to the Gulf Coast. River levels on the Mississippi have increased throughout the year, slowing barge traffic considerably. Levels at St. Louis have been well above-average and even above 1993 levels at times.
The transportation of grains is a large volume and profitable business sector for railroads in the U.S. and Canadian markets. Grains are harvested seed of the grass family. Also called cereals, the basic grains include wheat, oats, rice and corn.
The Oregon Legislature on Saturday (June 29) approved a bill requiring railroads transporting large amounts of crude oil through Oregon to develop spill response plans and submit them to the Department of Environmental Quality for review and approval. The bill was one of the first passed by the Oregon Senate since June 20, when Republicans orchestrated a walkout in response to a controversial greenhouse gas emissions bill. House Bill 2209 requires railroads owning or operating routes for trains carrying highly hazardous materials to have oil spill contingency plans that have been approved by Oregon's Department of Environmental Quality.
The protracted trade war between the U.S. and China, plus decelerating global GDP growth, were supposed to hurt industrial stocks. New orders for non-defense capital goods rose by 0.4% from April to May and, overall, businesses are still making expensive investments, wrote Paul Ashworth, an economist at Capital Economics, in a note to clients cited by The Wall Street Journal. Leading industrials include Emerson Electric Co. (EMR), Honeywell International Inc. (HON), Union Pacific Corp. (UNP), CSX Corp. (CSX), Stanley Black & Decker Inc. (SWK), General Electric Co. (GE), and Boeing Co. (BA).
Another stormy day for some drivers: Severe thunderstorms producing large hail, gusty winds, and/or flash flooding will be spotty across portions of the Rockies, Great Plains and the Mississippi River ...
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Union Pacific (UNP) have what it takes? Let's find out.
Union Pacific’s (UNP) rail traffic fell 6% year-over-year in Week 24, which ended on June 15. The company hauled 166,950 railcars during the week—compared to 177,599 wagons in Week 24 of 2018.