The Case for and Against CSX Corporation (CSX)

CSX Corporation (CSX) is an interesting player in the Services space, with a focus on Railroads. The stock has been active on the tape, currently trading at $47.75, down from yesterday’s close by -0.44%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

This company has been competing with others in the Services space and offers its own combination of interesting factors CSX Corporation (CSX) currently trades with a market capitalization of $44.65 Billion.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CSX, the company currently has $603 Million of cash on the books, which is offset by $331 Million current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $643 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.42 on a per share basis this quarter. Perhaps, that suggests something about why 0.18% of the outstanding share supply is held by institutional investors.

Technical Analysis

No analysis is ever complete without a thorough survey of a stock’s technical behavior. Looking at the stock’s movement on the chart, CSX Corporation recorded a 52-week high of $49.13. It is now trading 1.38% off that level. The stock is trading $40.05 its 50-day moving average by -7.7%. The stock carved out a 52-week low down at $21.98.

In recent action, CSX Corporation (CSX) has made a move of +25.53% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 23.91, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.62% with $931.45 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CSX.

Previous articleDrilling Down Into Corning Incorporated (GLW)
Next articleDrilling Down Into Occidental Petroleum Corporation (OXY)