This Railroad Stock Will Keep on Chuggin’

CSX Corp. is challenging its bearish resistance

   
This Railroad Stock Will Keep on Chuggin’

CSX Corp. (NYSE:CSX) – This operator of the largest rail network in the eastern U.S. is expected to be driven higher by an increase in foreign coal shipments, as well as auto and international container shipments. Profit margins are expected to rise in 2012 because of an increase in volume and productivity. Earnings are expected to rise from $1.35 in 2010 and $1.67 in 2011 to $1.84 in 2012. Credit Suisse (NYSE:CS) sees steady growth ahead and has a target of $28 on the stock.

Technically, the stock had been consolidating just under its 50-day moving average at $22. However, several weeks ago the stock flashed a golden cross (long-term buy signal), but then pulled back on a market selloff to $20. Our proprietary internal indicator flashed a buy at $20 on June 4, and within 10 days the stock had advanced through its resistance and now challenges the bearish resistance line at less than $23. Buy CSX at the market.

CSX This Railroad Stock Will Keep on Chuggin

chart key This Railroad Stock Will Keep on Chuggin


Article printed from InvestorPlace Media, http://investorplace.com/2012/06/this-railroad-stock-will-keep-on-chuggin-csx/.

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