Zacks Investment Research·4d ago
Should Investors Hold CSX Stock Despite Its Higher Valuation?With CSX shares moving north, we assess the current positioning of the stock to determine if it's a good investment at this juncture.
CSX's Q2 2026 revenue surged 10.1% YoY to $3.9B, with operating margin expanding to 38.3%, yet this rebound appears driven by volume gains at the expense of pricing, as revenue per unit likely declined. The company's elevated leverage (D/E of 1.37) and thin li...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue rebounded 10.1% YoY in Q2 2026 to $3.9B, but operating margin at 38.3% remains below the 38.7% peak in Q2 2024, suggesting pricing pressure amid volume growth.
CSX is transforming into a more efficient and reliable railroad through scheduled railroading, guided by principles of safety, service, cost control, asset utilization, and people.
CSX demonstrates solid operational performance with 18.5 mph train velocity and 10.8 hours terminal dwell, indicating efficient movement and handling of rail cars.
CSX is well positioned to benefit from long-term economic growth due to its solid fundamentals and high-quality operations in rail transportation.
Trailing total returns as of 10/4/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 22, 2026 | $0.54+4.2% vs $0.52 | $3.9B+1.0% vs $3.9B |
Q2 2026 Apr 22, 2026 | $0.43+10.5% vs $0.39 | $3.5B-0.2% vs $3.5B |
Q1 2026 Jan 22, 2026 | $0.39-5.1% vs $0.41 | $3.5B-0.9% vs $3.5B |
Q4 2025 Oct 16, 2025 | $0.44+3.7% vs $0.42 | $4.5B+24.9% vs $3.6B |
With CSX shares moving north, we assess the current positioning of the stock to determine if it's a good investment at this juncture.
Representative Kevin Hern (Republican-Oklahoma) recently sold shares of CSX Corporation (NASDAQ: CSX). In a filing disclosed on September 25th, the Representative disclosed that they had sold between $1,001 and $15,000 in CSX stock on August 31st. The trade occurred in the Representative's "KEVIN HERN TRADITIONAL IRA" account. Representative Kevin Hern also recently made the following trade(s):
Representative Kevin Hern (Republican-Oklahoma) recently sold shares of CSX Corporation (NASDAQ: CSX). In a filing disclosed on September 25th, the Representative disclosed that they had sold between $1,001 and $15,000 in CSX stock on August 27th. The trade occurred in the Representative's "KEVIN HERN TRADITIONAL IRA" account. Representative Kevin Hern also recently made the following trade(s):
Freight railroads own infrastructure that cannot be replicated, but their dividends depend on variables most income investors overlook.
Benchmark CSX against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for CSX Corporation (CSX)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $47.43 | $87.86B | 30.80 | -3.08% | 20.5% | 22.51% | 1.1% | |
| $278.28 | $165.32B | 23.25 | 1.07% | 28.85% | 38.65% | — | |
| $317.44 | $71.3B | 24.90 | 0.47% | 21.02% | 16.8% | — | |
| $85.94 | $75.55B | 27.15 | 3.66% | 18.76% | 9.58% | — | |
| $119.77 | $72.45B | 22.57 | 1.43% | 26.91% | 22.19% | — | |
| $287.54 | $48.57B | 42.10 | 7.51% | 10.59% | 11.32% | — |
CSX Corporation (CSX) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
CSX Corporation (CSX) SEC filings — annual & quarterly reports (10-K, 10-Q)
Jul 22, 2026·SEC
May 14, 2026·SEC
Apr 22, 2026·SEC
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CSX Corporation (CSX) stock FAQ — growth, dividends, profitability & financials explained
CSX Corporation (CSX) reported $14.51B in revenue for fiscal year 2025. This represents a 38% increase from $10.54B in 1996.
CSX Corporation (CSX) saw revenue decline by 3.1% over the past year.
Yes, CSX Corporation (CSX) is profitable, generating $3.22B in net income for fiscal year 2025 (20.5% net margin).
Yes, CSX Corporation (CSX) pays a dividend with a yield of 1.10%. This makes it attractive for income-focused investors.
CSX Corporation (CSX) has a return on equity (ROE) of 22.5%. This is excellent, indicating efficient use of shareholder capital.
CSX Corporation (CSX) generated $5.02B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
