CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It also transports chemicals, agricultural and food products, minerals, automotive, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities. In addition, the company provides intermodal services through a network of approximately 30 terminals transporting manufactured consumer goods in containers; and drayage services, including the pickup and delivery of intermodal shipments. It serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products, such as plastics and ethanol from rail to trucks. The company operates approximately 20,000 route mile rail network, which serves various population centers in 26 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,500 locomotives. It serves production and distribution facilities through track connections. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida.

У CSX сильная операционная рентабельность сочетается с заметно завышенной оценкой по рынку. Маржа валовой прибыли 69.39%, операционная маржа 33.45% и чистая маржа 21.55% выглядят очень сильными и выше отраслевых медиан, что поддерживает качество бизнеса. ROE 23.52% и ROA 7.01% также хорошие, хотя ROA уже не выглядит выдающимся относительно высокой оценки актива базы. При этом мультипликаторы остаются напряжёнными: P/E 27.66, P/S 5.95, P/B 6.59 и P/FCF 52.40 существенно выше отрасли, поэтому рынок уже закладывает высокий уровень качества и стабильности. Динамика мультипликаторов за последние периоды в целом ухудшает картину оценки: P/S, P/B и P/FCF росли, то есть акция дорожала быстрее фундаментальных потоков. Долговая нагрузка тоже не даёт сильного повода для переоценки вверх: debt/equity 1.34 выше медианы отрасли, а long-term debt остаётся крупным и практически не снижается. Ликвидность слабая, поскольку current ratio 0.81 и quick ratio 0.83 ниже комфортных уровней, что для капиталоёмкого бизнеса повышает чувствительность к циклу и денежным разрывам. С другой стороны, выручка, EBITDA, операционная прибыль и чистая прибыль остаются устойчивыми, а баланс по капиталу и активам не выглядит ухудшающимся. Дивидендная доходность 0.31% снижается по годам, поэтому дивидендный аргумент для оценки сейчас слабый. В сумме фундаментал скорее качественный, чем дешёвый: прибыльность и маржи поддерживают цену, но высокая относительная оценка и слабая ликвидность ограничивают потенциал дальнейшего апсайда. Поэтому целесообразна умеренная консервативная корректировка прогноза вниз, а не глубокое снижение, поскольку бизнес остаётся прибыльным и устойчивым.

CSX Corporation

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, без изменений. Рынок на стороне быков.

Medium index, flat. The market is on the bulls' side.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

CSX остаётся высокомаржинальным и прибыльным, но торгуется дорого по P/E, P/B, P/S и P/FCF, при слабой ликвидности и высокой долговой нагрузке.

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in CSX Corp (Symbol: CSX), where a total volume of 82,845 contracts has been traded thus far today, a contract volume which is representative of approximately 8.3 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 62.9% of CSX's average daily trading volume over the past month, of 13.2 million shares. Particularly high volume was seen for the $48.50 strike call option expiring June 18, 2026, with 41,429 contracts trading so far today, representing approximately 4.1 million underlying shares of CSX. Below is a chart showing CSX's trailing twelve month trading history, with the $48.50 strike highlighted in orange:
Adobe Inc (Symbol: ADBE) options are showing a volume of 25,920 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 49.7% of ADBE's average daily trading volume over the past month, of 5.2 million shares. Especially high volume was seen for the $350 strike call option expiring July 17, 2026, with 1,544 contracts trading so far today, representing approximately 154,400 underlying shares of ADBE. Below is a chart showing ADBE's trailing twelve month trading history, with the $350 strike highlighted in orange:
And BlackRock New York Municipal Income Trust (Symbol: BNY) options are showing a volume of 17,802 contracts thus far today. That number of contracts represents approximately 1.8 million underlying shares, working out to a sizeable 49.6% of BNY's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $120 strike put option expiring January 15, 2027, with 8,780 contracts trading so far today, representing approximately 878,000 underlying shares of BNY. Below is a chart showing BNY's trailing twelve month trading history, with the $120 strike highlighted in orange:
For the various different available expirations for CSX options, ADBE options, or BNY options, visit StockOptionsChannel.com.
Further CSX Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Wednesday Option Activity: CSX, ADBE, BNY

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Dimensional US Core Equity 2 ETF (Symbol: DFAC) where we have detected an approximate $431.6 million dollar outflow -- that's a 0.9% decrease week over week (from 1,067,500,000 to 1,057,800,000). Among the largest underlying components of DFAC, in trading today American Express Co. (Symbol: AXP) is down about 2.5%, General Motors Co (Symbol: GM) is up about 1.3%, and CSX Corp (Symbol: CSX) is higher by about 1%. For a complete list of holdings, visit the DFAC Holdings page » The chart below shows the one year price performance of DFAC, versus its 200 day moving average:
Looking at the chart above, DFAC's low point in its 52 week range is $34.4301 per share, with $44.53 as the 52 week high point — that compares with a last trade of $44.29. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further DFAC Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DFAC, AXP, GM, CSX: Large Outflows Detected at ETF

Tuesday, June 2, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Chevron Corp. (CVX), The Goldman Sachs Group, Inc. (GS) and Philip Morris International Inc. (PM). These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> GOOGL Borrows for More AI, DG & VSCO Report, JOLTS After the Open
Today's Featured Research Reports
Shares of Chevron have gained +25.6% over the past six months against the Zacks Oil and Gas - Integrated - International industry’s gain of +27.1%. The company has emerged as a strong beneficiary of higher oil prices, supported by its upstream leverage and expanding production base following the Hess acquisition.
The deal adds high-quality assets in Guyana, the Bakken and the Gulf of America, strengthening long-term output and free cash flow growth. Management reaffirmed production growth guidance of 7%-10% while maintaining disciplined capital spending, highlighting operational efficiency and financial strength.
Chevron also benefits from its integrated refining system, growing LNG exposure through long-term contracts, and strong production momentum at Tengizchevroil. In addition, the company’s partnership initiatives tied to AI-driven power demand create new long-term growth opportunities.
(You can read the full research report on Chevron here >>>)
Goldman Sachs’ shares have outperformed the Zacks Financial - Investment Bank industry over the past six months (+28.3% vs. +2.7%). The company’s earnings surpassed estimates in the four trailing quarters. Management is narrowing the consumer footprint and is prioritizing durable revenue streams across banking, markets and alternatives. An improving deal activity and strong investment banking backlog continue to support advisory and fee-income growth prospects.
Goldman Sachs’ expansion in the private equity credit market is expected to diversify its revenue base and support its growth over the long run. A solid liquidity profile will support its capital distribution activities.
However, its high dependence on overseas revenues is worrisome. The rising expense base might hamper the company's near-term profitability. In addition, its elevated provisions amid volatile macro backdrop remains a key concern.
(You can read the full research report on Goldman Sachs here >>>)
Shares of Philip Morris have outperformed the Zacks Tobacco industry over the past six months (+16% vs. +11.8%). The company has been benefiting from strong pricing power and an expanding smoke-free portfolio. Philip Morris is making steady progress in its smoke-free transition, with IQOS, ZYN and VEEV supporting growth and margin expansion across markets.
In first-quarter 2026, net revenues rose 9.1% year over year, driven by higher combustible pricing and increasing smoke-free contributions, which generated 43% of total revenues. The company is also progressing on cost-saving initiatives, helping support profitability even as it continues to invest in innovation, marketing and commercial capabilities.
For 2026, adjusted earnings per share are likely to be $8.36-$8.51, up 10.9-12.9% year over year. However, Philip Morris faces ongoing declines in cigarette volume, weakness in its U.S. business and increasing regulatory pressures across key markets.
(You can read the full research report on Philip Morris here >>>)
Other noteworthy reports we are featuring today include CSX Corp. (CSX), Axon Enterprise, Inc. (AXON) and Sterling Infrastructure, Inc. (STRL).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
CSX's Shareholder-Friendly Stance Aids Amid Debt & Coal Market Woes
The Zacks analyst likes the company's efforts to reward its shareholders through dividends and buybacks. However, high debt levels and coal market woes are major concerns.
Robust Connected Devices Unit to Aid Axon Enterprise (AXON)
Per the Zacks analyst, Axon's Connected Devices segment is driven by robust demand for TASER devices and higher cartridge revenues. Accretive acquisitions also bode well for the company.
Public Infrastructure Demand & High-Margin Backlog Aid Sterling (STRL)
Per the Zacks analyst, Sterling is gaining from multi-year growth visibility for public infrastructure, mainly data centers and semiconductors, alongside its focus on high-margin projects.
Samsara (IOT) Gains From Growing ARR, Retention, and Cross-sell
Per the Zacks analyst, the growing adoption of AI-based video telematics products among larger enterprise customers is driving Samsara's ARR, retention, and cross-sell.
HubSpot (HUBS) Rides on Steady Multi Hub Adoption, AI Focus
Per the Zacks analyst, solid enterprise traction, multi-hub adoption and growing monetization of AI offerings will likely drive HubSpot's top line. Strong cash flow growth is a positive.
Strong Briumvi Sales Aid TG Therapeutics (TGTX) Amid Competition
Per the Zacks analyst, TG Therapeutics' sole drug, Briumvi, approved for relapsing forms of multiple sclerosis, is driving the top line. However, sole dependence on Briumvi for revenues is a concern.
ProAssurance (PRA) Rides On Solid Investment Income and Cost Control
Per the Zacks analyst, its rising net investment income will fuel ProAssurance's top-line growth. Also, its cost control efforts are strengthening its operating margins.
New Upgrades
YPF Sociedad Anonima (YPF) to Benefit From Shale Oil Growth
Per the Zacks analyst, YPF's rising shale oil production, strong refining performance, favorable oil prices and export expansion support higher production, cash flow and long-term earnings growth.
Align Technology (ALGN) Gains From Invisalign, Digital Dentistry
The Zacks analyst is impressed with Align Technology's Invisalign and iTero strength, expanding DSO partnerships and digital dentistry leadership, which continue to support growth.
AI Server and Telecom Demand Aids Vishay's (VSH) Prospects
Per the Zacks analyst, the growing adoption of power management products in AI servers and telecom infrastructure is likely to continue aiding Vishay's prospects in the near term.
New Downgrades
Rise in Accounts Receivables, Weather Fluctuations Ail CWCO
Per the Zacks analyst, CWCO's performance can be adversely impacted by delays in the collection of accounts receivables, and weather fluctuations during the second half of the year reducing demand.
Rising Material Prices & Elevated Debt to Ail Honda (HMC)
Per the Zacks analyst, rising material prices are likely to hurt Honda's fiscal 2027 operating margin. Elevated debt levels also remain a concern.
NIKE (NKE) Struggles With an Extended Greater China Turnaround
Per the Zacks analyst, NIKE's Greater China business is pressured by weak digital demand, lower wholesale sell-in and marketplace cleanup, with the reset likely to weigh on revenues in fiscal 2027.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Top Research Reports for Chevron, Goldman Sachs & Philip Morris

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Is CSX (CSX) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.
CSX is one of 99 individual stocks in the Transportation sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. CSX is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for CSX's full-year earnings has moved 2.6% higher within the past quarter. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, CSX has returned 24.9% so far this year. At the same time, Transportation stocks have gained an average of 12.8%. As we can see, CSX is performing better than its sector in the calendar year.
EuroDry (EDRY) is another Transportation stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 79.2%.
The consensus estimate for EuroDry's current year EPS has increased 29.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, CSX belongs to the Transportation - Rail industry, which includes 9 individual stocks and currently sits at #179 in the Zacks Industry Rank. On average, stocks in this group have gained 16.6% this year, meaning that CSX is performing better in terms of year-to-date returns.
EuroDry, however, belongs to the Transportation - Shipping industry. Currently, this 22-stock industry is ranked #44. The industry has moved +36.4% so far this year.
Going forward, investors interested in Transportation stocks should continue to pay close attention to CSX and EuroDry as they could maintain their solid performance.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
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CSX Corporation (CSX) : Free Stock Analysis Report
EuroDry (EDRY) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is CSX (CSX) Stock Outpacing Its Transportation Peers This Year?

Among the underlying components of the S&P 500 index, we saw noteworthy options trading volume today in Qualcomm Inc (Symbol: QCOM), where a total of 137,370 contracts have traded so far, representing approximately 13.7 million underlying shares. That amounts to about 44.6% of QCOM's average daily trading volume over the past month of 30.8 million shares. Especially high volume was seen for the $260 strike call option expiring May 29, 2026, with 13,722 contracts trading so far today, representing approximately 1.4 million underlying shares of QCOM. Below is a chart showing QCOM's trailing twelve month trading history, with the $260 strike highlighted in orange:
CSX Corp (Symbol: CSX) options are showing a volume of 50,874 contracts thus far today. That number of contracts represents approximately 5.1 million underlying shares, working out to a sizeable 42.3% of CSX's average daily trading volume over the past month, of 12.0 million shares. Particularly high volume was seen for the $48.50 strike call option expiring June 18, 2026, with 45,110 contracts trading so far today, representing approximately 4.5 million underlying shares of CSX. Below is a chart showing CSX's trailing twelve month trading history, with the $48.50 strike highlighted in orange:
And Coherent Corp (Symbol: COHR) options are showing a volume of 25,655 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 41.2% of COHR's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $335 strike call option expiring June 05, 2026, with 1,856 contracts trading so far today, representing approximately 185,600 underlying shares of COHR. Below is a chart showing COHR's trailing twelve month trading history, with the $335 strike highlighted in orange:
For the various different available expirations for QCOM options, CSX options, or COHR options, visit StockOptionsChannel.com.
Further QCOM Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: QCOM, CSX, COHR

It has been about a month since the last earnings report for Canadian National (CNI). Shares have added about 6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CN due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Canadian National Q1 Earnings In Line
Canadian National reported first-quarter 2026 results, wherein earnings met the Zacks Consensus Estimate and revenues beat the same.
Earnings of $1.31 per share (C$1.87) met the Zacks Consensus Estimate and increased 1.6% year over year. Revenues amounted to $3.19 billion (C$4.38 billion), surpassed the Zacks Consensus Estimate by 0.8% and rose 4.1% year over year.
Revenue ton-miles (RTMs or a measure of volumes) increased 3% year over year. Carloads rose 1.8% on a year-over-year basis. Freight revenues per RTM fell 3.4% year over year.
Operating expenses for the first quarter of 2026 increased by 1.3% to C$2.83 billion year over year. The operating income fell 2% from first-quarter 2025 actuals. The operating ratio, defined as operating expenses as a percentage of revenues on an adjusted basis, improved by 120 basis points to 64.6% in the first quarter of 2026.
CNI’s Q1 Segmental Highlights
Freight revenues, which contributed 97.4% to the top line, decreased 0.5% year over year. Freight revenues in petroleum and chemicals, grain and fertilizers, and intermodal rose 1.4%, 10.3% and 2.3%, year over year, respectively. Metals and minerals, forest products, coal and automotive fell 10.5%, 11% and 5.5% on a year-over-year basis.
Segment-wise, carloads in petroleum and chemicals, grain and fertilizers, intermodal and automotive segments increased 4%, 10%, 3% and 10% on a year-over-year basis.
Carloads in the metals and minerals remained flat on a year over year basis. The same in the forest products, coal and automotive segments decreased by 8%, 8% and 6% respectively on a year-over-year basis.
CNI’s Liquidity
Canadian National ended the first quarter of 2026 with cash and cash equivalents of C$573 million compared with C$350 million at the end of the fourth quarter of 2025. CNI exited the March-end quarter with a long-term debt of C$20.5 billion compared with C$20.3 billion at the close of the December quarter of 2025.
CNI generated C$1.27 billion of cash from operating activities. Free cash flow was C$900 million.
CNI’s Outlook
For full-year 2026, CNI anticipates earnings per share (EPS) growth to slightly exceed the RTMs volume growth and plans to invest approximately C$2.8 billion in its capital program, net of amounts reimbursed by customers. Volume growth in terms of RTMs is anticipated to remain flat.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in estimates review.
VGM Scores
At this time, CN has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CN has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CN is part of the Zacks Transportation - Rail industry. Over the past month, CSX (CSX), a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2026 more than a month ago.
CSX reported revenues of $3.48 billion in the last reported quarter, representing a year-over-year change of +1.7%. EPS of $0.43 for the same period compares with $0.34 a year ago.
For the current quarter, CSX is expected to post earnings of $0.48 per share, indicating a change of +9.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.
CSX has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CN (CNI) Up 6% Since Last Earnings Report: Can It Continue?

Key Points
CSX is already showing improvement under new CEO Steve Angel.
Union Pacific is awaiting word on its pending $85 billion merger with Norfolk Southern.
CSX's stability and solid growth outlook make it the better stock for now.
Class I railroads Union Pacific (NYSE: UNP) and CSX (NASDAQ: CSX) are two prominent companies that transport bulk goods and commodities across the continent on tens of thousands of miles of track.
Railroads are classic industrial stocks, but still a fantastic business to invest in today. The incumbent railroad companies dominate North America, and, combined with regulatory hurdles, make it almost impossible for new entrants to enter the fray. That drives pricing power and strong investment returns. Union Pacific has returned 308% over the past decade, slightly outpacing the S&P 500 index's 326%. Meanwhile, CSX has been a home run, returning over 519%.
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But which is the better railroad to own in 2026? There's a ton to like about Union Pacific, but much of that depends on a blockbuster acquisition. That's why CSX remains the better railroad stock in 2026. Here is what you need to know.
CSX's operational improvement is the 2026 headline
CSX operates approximately 20,000 miles of rail and provides rail and intermodal transport services throughout the eastern and southeastern United States and the Canadian provinces of Ontario and Quebec. CSX appointed Steve Angel as CEO in September 2025. He was the former CEO of Linde, an industrial gases giant where operational efficiency is paramount to success. That influence has shown up pretty quickly. CSX's operating margin rose by 560 basis points year over year in the first quarter of 2026, driven largely by a 6% reduction in operating expenses.
The company also recently completed its project at the Howard Street Tunnel in Baltimore, which will boost intermodal volumes. Intermodal volumes rose 6% in the first quarter. The market has rewarded the stock with a forward P/E ratio of 24. It's not a very low valuation, certainly not a bargain. That said, it seems fair given analysts' expectation of approximately 10% annualized earnings growth over the next three to five years. It makes CSX a safe, steady investment.
Union Pacific's pending merger could transform the company
Union Pacific is larger, with about 32,000 miles of railroad track, but operates in the western and central United States, touching parts of Mexico. It's the only railroad with access to all six gateways between the two countries. It's a major advantage, given the significant manufacturing and trade flows between these nations. However, the big story with Union Pacific right now is its pending $85 billion merger with Norfolk Southern, which both parties agreed to last summer.
The merger is currently in regulatory review. Regulators could approve, reject, or impose conditions on the merger, such as requiring asset sales. If approved as is, the merger would create a behemoth in the industry. Its railroad would span over 50,000 miles through 43 states, linking roughly 100 ports across North America. The companies expect a decision on the merger sometime in 2027.
Blockbuster acquisitions come with an assortment of risks
Even if regulators approve the merger as is, there are several risks that investors should consider with Union Pacific.
The merger is an enormous deal. Union Pacific's market cap is about $157 billion, so this deal dramatically increases the company's size. Such large mergers almost always raise questions about how well the pieces fit together. A rocky post-merger transition could hurt operating efficiency or margins. There will likely be cost savings as Union Pacific cuts redundant expenses, but identifying, cutting, and realizing those savings can take several years.
On top of that, analysts currently see Union Pacific growing earnings by an average of 7% to 8% annually over the next three to five years, and Norfolk Southern growing earnings by an average of 4% to 5% over the same time period. Yet, Union Pacific trades at a forward P/E ratio of about 21 times 2026 earnings estimates. In other words, investors could be better off paying a slightly higher valuation for CSX, a more stable company with a stronger earnings growth outlook.
Union Pacific could look completely different once this merger saga plays out. Until then, you're buying Union Pacific for its merger story and long-term potential, not its current fundamentals. That makes CSX the better railroad stock to buy in 2026.
Should you buy stock in CSX right now?
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Union Pacific vs. CSX: Better Railroad Stock in 2026?

A month has gone by since the last earnings report for CSX (CSX). Shares have lost about 0.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CSX due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for CSX Corporation before we dive into how investors and analysts have reacted as of late.
Earnings Beat at CSX in Q1
CSX reported mixed first-quarter 2026 results wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the mark.
Quarterly earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 39 cents and increased 26% on a year-over-year basis as well. Results were aided revenue growth and reduction in operating expense
Total revenues of $3.48 billion missed the Zacks Consensus Estimate of $3.51 billion. The top line increased 2% year-over-year on the back of higher merchandise pricing, intermodal volume growth, higher domestic coal revenue, and increased fuel surcharge revenue. These were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.
First-quarter operating income increased 20% year over year to $1.25 billion. Total expenses decreased 6% year over year. CSX’s operating margin during the March quarter rose to 36% from 30.4% in the year-ago quarter. Total volumes inched up 3% year over year, boosted by intermodal volumes.
Q1 Segmental Performance of CSX
Merchandise revenues grew 2% year over year to $2.18 billion (matched with our estimate figure) in the reported quarter. Merchandise volumes rose marginally to $631 million. Segmental revenue per unit inched up 2% year over year.
Intermodal revenues increased 5% year over year to $518 million (below our estimate of $551.5 million). Segmental volumes increased 6% while revenue per unit was down 1% year over year.
Coal revenues slid 1% year over year to $458 million in the reported quarter. Coal volumes inched down 1% year over year, while segmental revenue per unit fell marginally.
Trucking revenues totaled $202 million (above our estimate of $183.4 million), flat year over year. Other revenues rose 1% year over year to $116 million in the reported quarter.
CSX’s Liquidity
CSX exited the first quarter of 2026 with cash and cash equivalents of $964 million compared with $670 million at the end of prior quarter. Long-term debt of $18.2 billion was flat sequentially.
2026 Guidance From CSX
For full year 2026, CSX now expects mid-single digit revenue growth (including fuel, based on the current forward curve for diesel) compared with the prior guidance of low single-digit revenue growth.
Operating margin expansion is now anticipated towards the higher end of the 200-300 basis point range, while previously it was expected to be around 200-300 basis point.
Free Cash flow is now anticipated to increase more than 60% compared with the prior expectation of growth of at least 50%. CSX continues to expect capital expenditures to be below $2.4 billion.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, CSX has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, CSX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is CSX (CSX) Down 0.6% Since Last Earnings Report?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the JPMorgan Nasdaq Equity Premium Income ETF (Symbol: JEPQ) where we have detected an approximate $108.0 million dollar outflow -- that's a 0.3% decrease week over week (from 639,350,000 to 637,550,000). Among the largest underlying components of JEPQ, in trading today Linde PLC (Symbol: LIN) is up about 1.5%, CSX Corp (Symbol: CSX) is up about 0.3%, and NXP Semiconductors NV (Symbol: NXPI) is lower by about 1.7%. For a complete list of holdings, visit the JEPQ Holdings page » The chart below shows the one year price performance of JEPQ, versus its 200 day moving average:
Looking at the chart above, JEPQ's low point in its 52 week range is $51.71 per share, with $60.14 as the 52 week high point — that compares with a last trade of $59.85. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Project your dividend income with confidence: Income Calendar tracks your income portfolio like a personal assistant.
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Dividend Growth Stocks
BGY Insider Buying
Top Stocks Held By Joel Greenblatt
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Outflows: JEPQ, LIN, CSX, NXPI

For Immediate Release
Chicago, IL – May 15, 2026 – Today, Zacks Equity Research discusses Union Pacific Corp. UNP, CSX Corp. CSX and Canadian Pacific Kansas City Ltd. CP.
Industry: Railroad
Link: https://www.zacks.com/commentary/2921349/3-railroad-stocks-to-watch-from-the-challenging-industry
The Zacks Transportation - Rail industry faces challenges, ranging from tariff-induced economic uncertainties, inflationary pressures and resultant high interest rates to concerns pertaining to supply-chain disruptions. High fuel costs, due to the ongoing conflict in the Middle East, have been hurting the bottom-line growth of industry players.
Despite the challenges surrounding the industry, Union Pacific Corp., CSX Corp. and Canadian Pacific Kansas City Ltd. appear better placed to tide over the challenges. Declining fuel costs represent a tailwind as far as bottom-line growth is concerned.
Industry Description
The Zacks Transportation - Rail industry includes railroad operators transporting freight (such as agricultural products, industrial products, coal, intermodal, automotive, consumer products, metals and minerals), primarily across North America. These companies focus on providing logistics and supply-chain expertise services.
While freight constitutes a significant chunk of revenues, some of these companies also derive a small portion of their top line from other rail-related services, including third-party railcar and locomotive repairs, routine land sales and container sales, among others. A few companies offer services to multiple production and distribution facilities. Besides locomotives, some of these companies own equipment of leased locomotives, railcars, etc.
Factors Deciding the Industry's Outlook
Strong Financial Returns for Shareholders: With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile through dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and confidence in the business. Among the Transportation – Railroad industry players, CSX's board of directors approved a dividend hike of 7.6%, thereby raising its quarterly cash dividend to 14 cents per share (56 cents annualized) from 13 cents (52 cents annualized) in February 2026.
Surge in Fuel Costs: A Bane: The ongoing conflict in the Middle East has resulted in a sharp jump in oil prices. Notably, oil prices surged almost 75% from the beginning of 2026 to date. As fuel expenses represent a key input cost for any transportation player, a rise in oil prices does not bode well for the bottom-line growth of railroad stocks.
Economic Uncertainty Remains: Tariff tensions have led to escalated trade woes across the globe. These tariff-induced economic uncertainties do not bode well for industry participants. With inflation remaining a concern, risks associated with an economic slowdown and geopolitical tensions dampen the prospects of stocks belonging to this industrial cohort. Sluggish economic growth and inflationary woes are likely to make markets more volatile in the coming days. Ongoing economic uncertainty does not bode well for industry players. Tariff-induced economic uncertainties and trade tensions may create uncertainty for investors interested in the industry.
Zacks Industry Rank Indicates Gloomy Prospects
The Zacks Transportation Railroad industry, housed within the broader Zacks Transportation sector, currently carries a Zacks Industry Rank #198. This rank places it in the bottom 19% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The sell-side analysts covering the companies in this industry have been decreasing their estimates. Over the past year, the industry’s consensus earnings estimate for the current year has decreased 5.2%.
Before we present a few stocks that investors can retain, given their growth prospects, let’s take a look at the industry’s recent stock market performance and current valuation.
Industry Lags S&P 500, Outperforms Sector
The Zacks Transportation - Rail industry has underperformed the Zacks S&P 500 Composite while outperformed the broader sector over the past year.
Over this period, the industry has gained 18.6% compared with the S&P 500 Index’s northward movement of 30.1%. The broader sector has surged 14.8%.
Industry's Current Valuation
Based on the trailing 12-month price-to-book (P/B), a commonly used multiple for valuing railroad stocks, the industry is currently trading at 6.78X compared with the S&P 500’s 7.89X. It is above the sector’s P/B ratio of 4.05X.
Over the past five years, the industry has traded as high as 10.92X, as low as 5.40X and at the median of 6.93X.
3 Stocks to Keep an Eye On
We are presenting three Zacks Rank #3 (Hold) stocks that are well-positioned to grow in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Union Pacific: Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States.
Relatively stable e-commerce demand, cost-cutting efforts to boost the bottom line and consistent initiatives to reward its shareholders through dividend payments and share repurchases bode well for UNP’s prospects. Further, UNP has a solid track record with respect to earnings surprises. The company surpassed the Zacks Consensus Estimate in three of the past four quarters (missed the mark in the remaining quarter), with an average beat of 2.32%. The Zacks Consensus Estimate for UNP’s 2026 earnings has moved up 0.8% over the past 60 days. UNP’s expected earnings growth rate for 2026 is 7.55%.
CSX: Based in Jacksonville, FL, CSX offers rail-based freight transportation services like traditional rail service, transport of intermodal containers and trailers and rail-to-truck transfers.
CSX's consistent efforts to continue rewarding its shareholders by paying dividends and buying back shares look appreciative. The company's focus on improving workplace safety for employees is commendable. For 2026, CSX now expects mid-single digit revenue growth (including fuel, based on the current forward curve for diesel) compared with the prior guidance of low single-digit revenue growth. Operating margin expansion is now anticipated toward the higher end of the 200-300 basis point (bps) range, while previously it was expected to be around 200-300 bps. Free Cash flow is now anticipated to increase more than 60% compared with the prior expectation of growth of at least 50%.
CSX has a solid earnings surprise history. The company surpassed the Zacks Consensus Estimate in three of the past four quarters (missed the mark in the remaining quarter), with an average beat of 3.16%. The Zacks Consensus Estimate for CSX's 2026 earnings has moved up 2.2% over the past 60 days. CSX has an expected earnings growth rate of 17.39% for 2026.
Canadian Pacific: Headquartered in Calgary, Canada, Canadian Pacific manages a transcontinental freight railway in Canada, the United States and Mexico.
We are encouraged by the Canadian Pacific’s decision to pay dividends consistently. Such a move instills investors’ confidence and positively impacts the company’s bottom line. Canadian Pacific has an encouraging track record with respect to earnings surprise. The company's earnings missed the Zacks Consensus Estimate in each of the past four quarters, delivering an average miss of 2.26%. CP’s expected earnings growth rate for 2026 is 13.94%.
Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share. The company expects 2026 revenue ton miles to increase in the mid-single digits from the 2025 actuals.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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CSX Corporation

Market sentiment

Bullish sentiment

Share of longs and shorts

Confidence Index

Bulls

Support Index

Bulls

Cash flows Index

Bulls

Momentum

Hold

Hold

Metrics since the start of the current trend:

Protective stop levels