Wow, what a ride. CSX (CSX) railroad has been all over the pages of business news sites as its stock hit an all-time high on Monday, and promptly did a swan dive amid one of the biggest percentage losses for the overall market in a long time. On Tuesday, the IBD SmartSelect Composite Rating for CSX jumped to a near-best 96, up from 94 the day before.
The upgrade means the stock currently tops 96% of all other stocks in terms of key performance metrics and technical strength. Winning stocks often have a 95 or higher grade in the early stages of a new price run, so that’s a good starting point when looking for the best stocks to buy and watch.
CSX Stock Rating Jumps On Double-, Triple-Digit Growth
The Jacksonville, Fla.-based company posted a 20% EPS gain for Q4 to 42 cents per share. Over the past three quarters it’s reported year-over-year EPS gains of 136%, 34% and then 20%. Sales last quarter grew 21% to $3.43 billion, its third quarter in a row of double-digit revenue growth.
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CSX stock sports a 90 EPS Rating, which means its recent quarterly and annual earnings growth tops 90% of all stocks.
Its Accumulation/Distribution Rating of B- shows moderate buying by institutional investors over the last 13 weeks. CSX broke out earlier, but is now trading around 5% below the prior 38.11 entry from a cup without handle. After hitting that 38.63 new high Monday, CSX stock reversed, closing down 1.1% for the day, a sign of strength on a day when the Dow Jones fell nearly 800 points. On Tuesday, CSX dipped 5.5% to 35.15.
If a stock you’re tracking clears a buy point then falls 7% or more below the original entry price, it’s considered a failed base. Wait for the stock to set up and breakout from a new base and buy point. CSX could resume its upward trend or fall below that benchmark on Wednesday.
CSX earns the No. 1 rank among its peers in the Transportation-Rail industry group. Union Pacific (UNP) and Norfolk Southern (NSC) are also among the group’s highest-rated stocks.
Please follow James DeTar on Twitter @JimDeTar
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