Here's Why Investors Should Give CSX Corp Stock a Miss for Now

Company Overview - CSX Corporation is currently facing multiple headwinds, making it an unimpressive investment option [1] - The company has experienced a significant decline in share price, losing 18.8% over the past year compared to the transportation-rail industry's decline of 11.9% [2] Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings has been revised downward by 17% in the past 90 days [1] - For the current year, the consensus mark for earnings has been revised down by 10.2% in the same timeframe, indicating a lack of confidence from brokers [1] Performance Metrics - CSX currently holds a Zacks Rank of 4 (Sell) and has a Value Score of D, reflecting its unattractiveness [5] - The company has a negative earnings surprise history, lagging the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 0.55% [5] Revenue Challenges - The soft coal market has adversely affected CSX's prospects, with coal revenues falling 10% year over year to $2.24 billion in 2024 [6] - Coal volumes decreased by 3%, and for 2025, CSX expects further declines due to facility shutdowns and mine production issues [6] Operational Issues - Rail network issues, including locomotive and crew shortages, represent significant challenges for CSX, likely impacting service levels and operating efficiency [7] - Elevated capital expenditure is another concern, with management expecting 2025 capex to remain at $2.5 billion, unchanged from 2024 [8] Industry Context - CSX belongs to an industry currently ranked 147 out of 248 groups by Zacks, placing it in the bottom 40% of Zacks industries [9] - The performance of the industry group is crucial, as studies indicate that 50% of a stock's price movement is tied to its industry performance [9]