The Weekly Buzzing Stocks by Billy Kawasaki
CSX Corp
CSX-Q
TOP PICK
Apr 02, 2022
Holding company focused on rail transportation in North America. Benefitting from the current supply chain situation. New entrance in the trending stocks, with 11 mentions in the past 24h.
Really likes the rails, a cyclical group. CN, CP, CSX trade as a team. Transport is doing quite well, and the rails have a lot of leverage in their business models. Done a great job managing operating expenses.
(A Top Pick Jun 22/21, Up 16.5%) Railroads are benefiting from the infrastructure and supply chain, because rails are the leading way to transport good. This is a positive. He sees 8% earnings growth. Still a buy.
This is an east coast railroad, and east coast ports will get more business (west coast ports are dysfunctional). They are minting money with coal shipping; Europe has de-nuclearized, so it needs other sources of energy. A long-term investment. Is down 16% this year, but has a lot of upside.
Last week, they reported a good quarter with stable volumes, up 1% YOY, led by automotives, chemicals (up 5%) and fertilizer (4%). Revenues beat, but earnings were down 8% over the year. Also, they raised guidance.
Will benefit 6-8% from US tax cuts to come and a strong US economy. CSX reduced their share count by 34% in the last 10 years, while dividends have risen.
(Analysts’ price target is $38.59)
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