Analysts' Sentiments Toward CSX Corporation's Shares?
In the dynamic world of stocks, one name that has been making waves is CSX Corporation. The Jacksonville, Florida-based transportation giant has outperformed the S&P 500 Index in 2025, with a Year-to-Date (YTD) gain of 10.1%.
Despite a lag in performance over the past year, CSX has managed to turn the tide in 2025, primarily due to sequential operational improvements and positive market sentiment. This optimism, coupled with expectations of a turnaround, appears to have driven CSX's recent performance.
In the second quarter of 2025, CSX reported mixed results. While operating income dropped 11% year-over-year to $1.28 billion, the company saw a 4% increase in total volume and a 550 basis points improvement in operating margin on a sequential quarterly basis. However, revenue and operating margins contracted compared to Q2 2024.
Despite these declines, CSX's stock price has appreciated by approximately 5.5% over the past 52 weeks. Analysts maintain a consensus "Neutral" rating with a potential 6% upside, reflecting cautious optimism. This suggests that investors may be pricing in anticipated future improvements or favourable forward guidance.
In contrast, over the past year, CSX underperformed the S&P 500 Index with a negative return of about -2.96%, partly due to flat to weak growth in operating profits and elevated valuation metrics. Much of the recent outperformance, however, has happened in 2025 as conditions showed signs of sequential improvement.
CSX operates in the rail and trucking segments and has a market cap of $65.8 billion. The company's total revenues dropped 3.4% year-over-year to $3.6 billion in Q2, missing the Street expectations by a small margin. However, CSX's EPS of $0.44 surpassed the consensus estimates by 4.8%.
Analysts expect CSX Corporation to deliver an EPS of $1.67 for the full fiscal 2025, ending in December, which is a decrease of 8.7% year-over-year. The mean price target of $37.71 suggests a modest 6.1% upside from current price levels, with the Street-high target of $45 representing a notable 26.6% premium.
The bullishness towards CSX is evident in the analyst recommendations. Of the 25 analysts covering the stock, there are 17 "Strong Buys", one "Moderate Buy", and seven "Holds". This represents a significant increase from a month ago, when only 13 analysts gave "Strong Buy" recommendations.
On Jul. 25, Baird analyst Daniel Moore reiterated an "Outperform" rating on CSX and raised the price target from $38 to $44.
It's important to note that all information and data in this article are for informational purposes only. For specific investment advice, it's always best to consult with a financial advisor.
[1] Seeking Alpha: CSX Corporation (CSX) Q2 2025 Earnings Call Transcript. (n.d.). Retrieved August 1, 2025, from https://seekingalpha.com/news/3760547-csx-corporation-csx-q2-2025-earnings-call-transcript [2] Yahoo Finance: CSX Corporation (CSX) Stock Price, News, Quotes & Financial Overview. (n.d.). Retrieved August 1, 2025, from https://finance.yahoo.com/quote/CSX/ [3] MarketWatch: CSX Corporation (CSX) stock plunges 12% after earnings miss. (2024, October 22). Retrieved August 1, 2025, from https://www.marketwatch.com/story/csx-corporation-csx-stock-plunges-12-after-earnings-miss-2024-10-22 [4] Business Wire: CSX Corporation Reports Second Quarter 2025 Results. (2025, July 23). Retrieved August 1, 2025, from https://www.businesswire.com/news/home/20250723005084/en/CSX-Corporation-Reports-Second-Quarter-2025-Results
- Despite some negative returns in the past year, investors are showing increased optimism towards CSX Corporation in 2025, as indicated by a consensus "Neutral" rating with a 6% upside, due to expectations of future improvements and favorable forward guidance, making it an interesting prospect for business and finance.
- Analysts have a bullish stance on CSX Corporation, with 17 "Strong Buy" recommendations, one "Moderate Buy," and seven "Holds," suggesting that the transportation giant's recent performance and forecasted earnings could attract investors interested in the finance and investing sectors.
