CSX Corporation (CSX) has performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes CSX an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of CSX have gained 42.8% so far this year, outperforming the 31.8% surge of the Transportation - Rail industry it belongs to.
CSX Stock YTD Price Comparison
Solid Zacks Rank: CSX presently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. The Zacks Consensus Estimate for third-quarter 2026 earnings has moved 5.88% north in the past 60 days. For the full year 2026 and 2027, the consensus mark for earnings has been revised upward by 5.26% and 3.72%, respectively, in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Positive Earnings Surprise History: CSX has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter), delivering an average beat of 3.97%.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2026, CSX’s earnings are expected to improve 22.73% year over year. For full year 2026 and 2027, CSX’s earnings are expected to improve 24.22% and 11.58% year over year, respectively.
Growth Factors: CSX Corporation's focus on improving workplace safety for employees is commendable. CSX's consistent efforts to strengthen its relations with its employees are reflected through the ratification of multiple collective bargaining agreements with the Brotherhood of Railroad Signalmen and the International Brotherhood of Boilermakers, Iron Ship Builders, Forgers & Helpers. Such deals reflect the employee-friendly attitude of CSX, through which it strives to maintain cordial relations with its employees and the unions representing them, thereby providing a healthy work environment at CSX.
CSX’s continued use of dividends and share repurchases reflects a disciplined capital-allocation policy. Such shareholder-friendly initiatives should boost investor confidence and benefit the bottom line.
CSX’s upbeat outlook for 2026 is noteworthy as well. For 2026, the company now expects mid-to high single-digit revenue growth (including fuel, based on the current forward curve for diesel) compared with its prior guidance of mid-single-digit revenue growth. Operating margin expansion is now anticipated to exceed 350 basis points compared with the previous expectation of around the higher end of the 200-300 basis points range. Free cash flow is now anticipated to increase more than 80% compared with the prior expectation of growth of more than 60%.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and Seanergy Maritime Holdings SHIP as well.
Expeditors currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
EXPD has an expected earnings growth rate of 28.6% for 2026. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.
Seanergy Maritime Holdings currently sports a Zacks Rank #1.
SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.
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CSX Corporation (CSX): Free Stock Analysis Report
Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
Seanergy Maritime Holdings Corp (SHIP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).