CSX stock: buy or sell?
Dec 1st, 2020
CSX stock brief
- CSX stock just moved 0.63% to close at $90.62 on the stock market on Tuesday, and broke a streak of 3 sessions in red.
- The stock is configuring an uptrend pattern since last March, when it bottomed at $46.35. This uptrend marked a 95.51% gain
- Deutsche Bank Aktiengesellschaft published a strong positive rating for CSX on Monday, targeting $105.00
- CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services.
Should I buy CSX stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $CSX stock a buy?
Currently, CSX stock matches one trading strategy:
ATH buy setup
All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it rises fast. However, there's the risk of a bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. CSX can break to all-time highs any time soon, as it only needs to go up a 3.12%. The buy point is at $93.45 if you want to trade with this strategy. The stop loss would be set at $84.11
|Buy setup||Buy point||Stop loss||Risk|
|ATH buy setup||$93.45||$84.11||10.00%|
Should I sell CSX stock?
When is it time to sell CSX?. Similarly to when we have to buy shares, choosing when is appropiate time to sell is not a capricious decision, and we must adhere our own trading style. When selling, as well as buying, our strategies are very easy to follow but are only valid for selling shares you already own, not for shorting CSX stock
As a rule of thumb, you should never keep an investment that leads to higher than expected losses upon the buy. The moment to sell shares should always be ruled by the stop-loss (automatic or manual)
Is it time to sell CSX stock?
Currently, CSX stock doesn't match any of our preferred sell setups, so if you own CSX stock and your operation is in profit probably is not time to sell now
In the last month, 2 brokerage ratings were published for CSX. General sentiment is bullish, with 2 out of 2 posting positive forecasts
|Nov 16th, 2020|
|Credit Suisse Group||Buy|
|Nov 30th, 2020|
|Deutsche Bank Aktiengesellschaft|| |
CSX stock analysis
Since last March, CSX has been drawing an uptrend that by now marked an amazing 95.51%. The price action shows higher peaks and higher lows, and along the way gave some buy points for those who wanted to invest. Latest pullback was last October, when price bounced at $75.18. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $93.45 and $75.18
Supports and resistances
The current resistances are:
The current support levels are:
Relative strength index
The RSI dropped below the overbought level of 70 on November 18 after just crossing to the overbough zone for just one day (weak signal). The RSI value on Tuesday was 60.08. Since then, CSX shares went down a 1.76%
CSX stock price history
CSX went public priced at an adjusted price1 of $0.35 on Nov 1980. Since then, CSX stock has risen by 25,791.43%, with an average of 644.79% per year. If you had invested thousand dollars in CSX stock on Nov 1980, it would worth $258,914.29 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for CSX stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations issue their analysis forecasting how a particular stock will performance in the future.
The following table shows the price forecasts published by analysts for the last 30 days. Again, these estimates are not direct recommendations for small traders and should not be trusted blindly.
The average price target for CSX stock calculated from the table below is $103.50. CSX closed at $90.62 on Tuesday, so the target price is predicting a growth by 14.21%.
|Brokerage firm||Price target|
|Nov 16th, 2020|
|Credit Suisse Group||$91.00 → $102.00|
|Nov 30th, 2020|
|Deutsche Bank Aktiengesellschaft||$97.00 → $105.00|
Earnings and financials
Last October, CSX Corporation ($CSX) reported EPS for that slightly improved Wall St. expectations. Quarterly EPS was $0.96 per share from an estimated $0.92. This quarterly report means an earnings surprise of 4.35%. On the contrary, the company said revenue for this quarter was $2.6 billion aligned with analysts' forecasts.In contrast, the EPS for the same quarter last year was $1.08, so reported EPS means a decrease of -11.11%. Looking at revenue, figures fell a -11.08% compared to $29.8B same quarter last year.
CSX ($CSX) is presenting earnings report mid next January. Market analysts analysts forecast of $0.99, that is a 3.13% more than previous quarter.
CSX is classified inside the Railroads industry, where it has 9 industry peers.
CSX biggest competitors are:
|Company||Market cap||Rating||Bullish ratings1|
|CSX ($CSX)||$70.5B|| ||2|
|Union Pacific ($UNP)||$137.1B|| ||1|
|Canadian National Railway ($CNI)||$77.3B||Neutral||0|
|Norfolk Southern ($NSC)||$61.6B||Neutral||0|
|Canadian Pacific Railway ($CP)||$45.4B||Neutral||0|
|Kansas City Southern ($KSU)||$17.7B||Neutral||0|
|Westinghouse Air Brake Technologies ($WAB)||$13.2B||Buy||1|
1 In the last 30 days.
To better understand CSX stock performance you must compare its gains with other related stocks in same sector or industry.. For CSX, the benchmark is made against Union Pacific, Canadian National Railway, Norfolk Southern, Canadian Pacific Railway, Kansas City Southern and Westinghouse Air Brake Technologies.
|Union Pacific ($UNP)||17.00%||6.70%||18.70%|
|Canadian National Railway ($CNI)||6.80%||3.10%||22.30%|
|Norfolk Southern ($NSC)||16.40%||12.10%||27.60%|
|Canadian Pacific Railway ($CP)||8.20%||9.10%||26.40%|
|Kansas City Southern ($KSU)||4.60%||1.60%||22.80%|
|Westinghouse Air Brake Technologies ($WAB)||25.30%||10.30%||15.30%|
Important note:The thoughts written in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the individual circumstances of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for educative purposes only
|Tuesday, December 1st, 2020|
|Day range||$90.36 - $92.08|
|Average true range||$2.17|
|50d mov avg||$82.85|
|100d mov avg||$78.31|
|200d mov avg||$71.65|
|Earnings date||January 14th, 2021|