CSX Should I Buy
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CSX Corp is not a strong buy for a beginner investor with a long-term strategy at this moment. While the company shows some positive developments, such as the locomotive deal and operational efficiency improvements, the overall financial performance, hedge fund selling trends, and mixed analyst sentiment suggest a cautious approach. The stock is better suited for monitoring rather than immediate investment.
The technical indicators are mixed. The MACD is positive but contracting, RSI is neutral at 69.719, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support is at 37.908, and resistance is at 41.388. However, the stock has a 40% chance of declining significantly in the short term based on candlestick patterns.
CSX signed a $670 million deal with Wabtec to acquire and modernize locomotives, enhancing fleet efficiency and competitiveness. The company is focused on improving operational efficiency and long-term shareholder value.
Hedge funds are selling heavily, with a 6358.05% increase in selling activity over the last quarter. Financial performance in Q4 2025 showed declines in revenue (-0.88% YoY), net income (-1.77% YoY), and gross margin (-1.96% YoY). Analysts have lowered price targets, and the stock is considered fully valued by some.
In Q4 2025, revenue dropped to $3.508 billion (-0.88% YoY), net income dropped to $720 million (-1.77% YoY), and gross margin decreased to 58.01% (-1.96% YoY). However, EPS increased to $0.39 (+2.63% YoY), indicating some operational efficiency.
Analyst sentiment is mixed. Several firms lowered price targets (e.g., Evercore ISI to $40, Citi to $41, Bernstein to $36), citing cautious macro outlooks and revenue shortfalls. However, some analysts maintain Outperform or Buy ratings, citing potential margin improvements and operational focus under the new CEO.
