Here's Why You Should Give CSX Corporation Stock a Miss Now

CSX Corporation (CSX) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.Let’s delve deeper.Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-quarter earnings has moved 8.8% south in the past 90 days. For the current year, the consensus mark for earnings has been revised 9.8% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.Dim Price Performance:  The company’s price trend reveals that its shares have lost 14.2% over the past six months compared with the transportation-rail industry’s 6.5% decline.Six-Month CSX Stock Price ComparisonImage Source: Zacks Investment ResearchWeak Zacks Rank and Style Score: CSX currently carries a Zacks Rank #4 (Sell). The company’s current Value Score of D shows its unattractiveness.Negative Earnings Surprise History: CSX has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters (outpaced the mark in the remaining quarter), delivering an average miss of 3.13%.Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For second-quarter 2025, CSX’s earnings are expected to decline 16.3% year over year. For 2025, CSX’s earnings are expected to decline 9.8% year over year.Other Headwinds: CSX’s prospects are being primarily hurt by the soft coal market. The weak coal market has resulted in below-par coal revenues. Coal revenues fell 27% year over year in the first quarter of 2025. Coal volumes decreased 9% year over year.Rail network issues due to headwinds like locomotive or crew/labor shortages and other service disruptions represent a major challenge for CSX. Network issues or supply chain constraints are likely to adversely impact service levels, in turn, hurting operating efficiency or volume of shipments.Elevated capital expenditures also represent a cause of worry. CSX's management expects 2025 capex to be approximately $2.5 billion. CSX shares are more volatile than the market. The combination of weak coal market, rail network issues and high capex casts a shadow over CSX's investment prospects.Stocks to ConsiderInvestors interested in the Transportation sector may also consider Copa Holdings CPA and Ryanair RYAAY.CPA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.CPA has an expected earnings growth rate of 13.1% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 16.5% year to date.RYAAY currently sports a Zacks Rank #1.The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 44.5%. Shares of RYAAY have rallied 15.6% year to date.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ryanair Holdings PLC (RYAAY): Free Stock Analysis Report CSX Corporation (CSX): Free Stock Analysis Report Copa Holdings, S.A. (CPA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks