CSX Corp. Hauls Freight-Sized Value Towards a New All-Time High

CSX Corp. is a railroad company with a 20,000-mile rail network operating in the eastern US and Canada. Its market cap is $67.71 billion, and it provides rail, intermodal, and rail-to-truck transload services for various industries. CSX has seen its annual revenue climb 16.13% since acquiring Quality Carriers in 2021. The company is exploring potential merger options in response to competitor Union Pacific's acquisition of Norfolk Southern. CSX trades less than 5% from its all-time high and is a value buy with a growing legacy as a leader in rail-based freight transportation in North America.

Title: CSX Corp. Eyes Expansion Amid Competitor Mergers

CSX Corp. (NASDAQ: CSX), a leading railroad company with a 20,000-mile rail network operating in the eastern United States and Canada, continues to expand its footprint and challenge its all-time high. The company's market cap stands at $67.71 billion, and it provides a range of services including rail, intermodal, and rail-to-truck transload services for various industries. Since acquiring Quality Carriers in 2021, CSX has seen its annual revenue climb by 16.13% [1].

In response to competitor Union Pacific's acquisition of Norfolk Southern, CSX is exploring potential merger options. The proposed merger between Union Pacific and Norfolk Southern, which would create the first coast-to-coast freight railroad in U.S. history, has significant implications for the industry. This merger is expected to pressure CSX, potentially leading to additional M&A activity and increasing the company’s breadth and top line [2].

CSX trades less than 5% from its all-time high and is considered a value buy with strong fundamentals. The company’s stock has gained more than 36% from its year-to-date low on April 8, 2025. As of July 2, 2025, the stock is valued at $36.52, with a price-to-earnings (P/E) ratio of 22.54 and a dividend yield of 1.42% [1].

CSX reported mixed results for the second quarter of 2025, beating earnings expectations with an EPS of 44 cents but falling short on revenue. However, the company’s forward P/E stands at 21.27, and its trailing 12-month EPS is $1.62, with forecasts for the following year in the $1.83 to $2.09 range, representing an average year-over-year growth rate of 14.21% [1]. Additionally, the company’s financial health is robust, with cash flow from continuing operating activities generating $635 million in the second quarter, allowing it to continue increasing its dividend for 21 consecutive years.

Wall Street analysts are generally favorable towards CSX, with 72% of analysts covering the stock assigning it a Buy rating. The stock is rated a Moderate Buy with 16 of the 22 analysts covering CSX assigning it a Buy rating [1].

References:
[1] https://www.marketbeat.com/originals/csx-railroad-freight-mergers-stock-all-time-high/
[2] https://www.citybiz.co/article/733557/mode-global-welcomes-union-pacific-norfolk-southern-merger/