CSX is defended by analysts after post-earnings stumble
Different_Brian/iStock Editorial via Getty Images
CSX Corporation (NASDAQ:CSX) was defended by analysts on Wednesday following a post-earnings skid that has seen shares fall by about 3.3% to move to negative territory for 2023.
Argus said the recent weakness offers investors a fresh buying opportunity. Analyst John Eade and team said they like CSX on a macro basis with the rail industry on a secular growth path compared to other transport options for the past 20 years. On a micro basis, Argus likes the company's history of raising the dividend and buying back stock. In terms of fundamentals, Argus used comparative peer multiple analysis as well as historical analysis and dividend discount modeling to find value. CSX shares are noted to trade at 15X projected 2024 earnings, below the midpoint of the five-year range of 10X to 22X. They are also trading above the midpoint of their historical range of 2X to 7X on price/sales, and the current dividend yield of 1.4% is observed to be near the midpoint of the five-year range
Meanwhile, Seeking Alpha analyst Leo Nelissen thinks CSX (CSX) saw fantastic improvements in its operations in Q1 and benefits from supply chain re-shoring investments. He also pointed to a strong buying opportunity for the rails stock.
More on CSX:

Read more breakdowns on CSX from Seeking Alpha analysts
View the growth metrics
See the financial and valuation comparisons to sector peers
Dig into the Seeking Alpha Quant Rating
Read a breakdown of CSX's last earnings report