Ticker (Exchange) – CSX (NASDAQ)
ISIN - US1264081035
Current price – $33.76
Target price – $38.91
Growth potential – 15.3%🔥
Dividend yield – 1.4%💵
Investment horizon – 1 year
CSX is an American company that operates a railroad network in the eastern United States. The company's history traces back to the Baltimore and Ohio Railroad, the oldest American railroad. Through a series of mergers and acquisitions (M&A), it evolved into CSX. The company shows strong financial performance and consistently pays dividends. The fair value of CSX stock is estimated at $38.91, implying a 15.3% growth potential. The dividend yield stands at 1.4%.
Investment thesis
🔼 Fundamental Undervaluation. CSX delivered solid results for Q2 2024, with revenue reaching $3.7 bln, unchanged from the same period last year. Net income declined by 3.3% to $963 mln, but adjusted earnings per share (EPS) remained steady at $0.49. Notably, both profit and revenue exceeded market expectations. CSX forecasts average annual revenue growth of 3.8% over the next three years. Currently, the company is valued at 17.5 times its expected annual earnings, which is below both the sector median (18.9x) and its own five-year average (18.9x).
🔼 Dividends. CSX has consistently paid dividends for the last 19 years, regularly increasing payouts, putting it close to the status of a "dividend aristocrat" (companies with 25 consecutive years of dividend increases). The current dividend yield of 1.4% is respectable, and with the expected decline in interest rates, this level will become increasingly attractive to investors.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN - US1264081035
Current price – $33.76
Target price – $38.91
Growth potential – 15.3%🔥
Dividend yield – 1.4%💵
Investment horizon – 1 year
CSX is an American company that operates a railroad network in the eastern United States. The company's history traces back to the Baltimore and Ohio Railroad, the oldest American railroad. Through a series of mergers and acquisitions (M&A), it evolved into CSX. The company shows strong financial performance and consistently pays dividends. The fair value of CSX stock is estimated at $38.91, implying a 15.3% growth potential. The dividend yield stands at 1.4%.
Investment thesis
🔼 Fundamental Undervaluation. CSX delivered solid results for Q2 2024, with revenue reaching $3.7 bln, unchanged from the same period last year. Net income declined by 3.3% to $963 mln, but adjusted earnings per share (EPS) remained steady at $0.49. Notably, both profit and revenue exceeded market expectations. CSX forecasts average annual revenue growth of 3.8% over the next three years. Currently, the company is valued at 17.5 times its expected annual earnings, which is below both the sector median (18.9x) and its own five-year average (18.9x).
🔼 Dividends. CSX has consistently paid dividends for the last 19 years, regularly increasing payouts, putting it close to the status of a "dividend aristocrat" (companies with 25 consecutive years of dividend increases). The current dividend yield of 1.4% is respectable, and with the expected decline in interest rates, this level will become increasingly attractive to investors.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
