CSX is a top pick at Evercore and has the highest SA Quant score in the sector
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Evercore ISI named CSX Corporation (NASDAQ:CSX) one of its Best Core Ideas on Monday as the calendar rolled into Q4.
Analyst Jonathan Chappell said CSX Corporation (CSX) is approaching the point where it is finally right-sizing the labor force on the railroad operator's network. He noted vast improvements in CSX's (CSX) most important service metrics, which could set the company up for revenue acceleration and material operating leverage at the first hint of a macro tailwind to demand and volumes.
"With modest top-line and productivity gains forecasted for this year, and an expectation that volume growth will only accelerate in 2024 driving greater incremental margins, the resulting robust free cash flow generation, coupled with a moderate capital expenditure budget and an already large cash stockpile, should enable CSX to maintain its recent accelerated pace of capital returns to shareholders, primarily in the form of its generous share repurchase program."
CSX is ranked first by Evercore ISI in the rails sector for the key categories of P/E, free cash flow yield, earnings per share growth, return on invested capital, and capital return.
CSX Corporation (CSX) also has the highest Seeking Alpha Quant rating score in the railroad sector.
Shares of CSX (CSX) fell 1.79% in mid-day trading on Monday. The rails stock is down more than 3% for the year.

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