CSX Corporation is recommended at Argus for macro and micro reasons
Vertigo3d/E+ via Getty Images


Argus thinks the recent share price weakness for CSX Corporation (NASDAQ:CSX) presents investors with a buying opportunity.
Analyst John Eade notes that CSX shares have underperformed the market during the past quarter with a drop of 2% vs. the flat performance of the S&P 500 Index. Eade and team say they like CSX on a macro basis, noting the rail industry has been on a secular growth path compared to other transport options like water, pipelines and trucks .

On a micro basis, CSX looks attractive due to the company's history of raising the dividend and buying back stock.
Argus assigns a price target of $49 to CSX.
Shares of CSX are down 1.78% premarket to $33.75 and trade below their 50-day and 100-day moving averages.