by Sam Collins | May 23, 2012 1:49 am
CSX Corp. (NYSE:CSX) — This is the operator of the largest rail network in the eastern United States. The stock is expected to be driven higher by an increase in foreign coal shipments and auto and international container shipments.
Profit margins are expected to rise in 2012 due to an increase in volume and productivity. Earnings are also expected to rise from $1.35 in 2010 and $1.67 in 2011 to $1.84 in 2012.
Credit Suisse sees steady growth ahead and has a target of $28 on the stock.
Technically the stock has been consolidating just under its 50-day moving average at $22. But two weeks ago, the stock flashed a golden cross (long-term buy signal), and yesterday the stochastic triggered a “buy.” A break over $23 on high volume could catapult it to our trading target of $27.
Source URL: http://investorplace.com/2012/05/trade-of-the-day-csx-corp-nyse-csx-2/
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