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CSX Could be Your Ticket to Big Returns

CSX operates one of the most efficient rail systems in the U.S.


CSX Corp. (NYSE: CSX) — This major U.S. rail network is a prime transporter of commodities and industrial products over a network of 21,000 route miles. Railroads generally do well in periods of higher energy costs since they are able to transport huge quantities of material at much lower costs than by either air or truck.

CSX operates one of the most efficient rail systems in the United States, and profit margins are expected to “widen modestly in 2011 due to increased volumes and efforts to limit cost increases,” according to S&P. S&P has a “four-star buy” rating on the stock with a price target of $79. 

Technically, the stock could do much better than that with a trading target of $80, and a longer-term target of $95. The stock appears to be breaking through a double-top and is one of the best stock picks for the current market.

Trade of the Day - CSX Stock Chart

Trade of the Day Chart Key

If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.

Article printed from InvestorPlace Media, https://investorplace.com/2011/03/trade-of-the-day-csx-corp-nyse-csx/.

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