CSX Corporation (CSX): It's Important To Know How The Firm Is Doing, Says Jim Cramer

We recently published a list of Jim Cramer Says “We Have No Idea What’s Really Going To Happen” and Discusses These 12 Stocks. In this article, we are going to take a look at where CSX Corporation (NASDAQ:CSX) stands against other stocks that Jim Cramer discusses.

CSX Corporation (NASDAQ:CSX) is one of the largest railroad companies in America. The firm’s stock performance depends on economic activity and is down by 4% year-to-date. However, CSX Corporation (NASDAQ:CSX)’s shares have gained 7% since early May. The shares have benefited from a broader rally in railroad stocks that kicked off at the start of the month. The stocks gained after trade tensions between the US and China appeared to thaw and investors bet on railroads on the promise of greater economic activity. Cramer’s previous comments about CSX Corporation (NASDAQ:CSX) remarked that investors appeared to forgive the firm for weak performance. Here are his recent remarks:

“And then Joe Hinrichs from CSX. I mean we have to know what the rail’s are saying. Because again I think that April’s a weak month. And we’re gonna have to, a lot of these quarters that we’re hearing they ended at March. March was still good because of pre Liberation Day.”

River Road Asset Management mentioned CSX Corporation (NASDAQ:CSX) in its Q4 2024 investor letter. Here is what the firm said:

“As of December 31, the portfolio held 29 positions, up four positions from Q3. During Q4, the largest sector increase was 736 bps within industrials, while the largest decrease was -276 bps within consumer discretionary. We established five new positions and eliminated one position

We also initiated a position in CSX Corporation (NASDAQ:CSX), 2.5 conviction), the largest Class 1 railroad on the transcontinental freight rail lines in the Eastern U.S. with access to two-thirds of the U.S. population. The company operates within a duopoly market structure on the east coast characterized by substantial barriers to entry, primarily due to its non-replicable and highly dense network infrastructure. This dynamic position has enabled CSX to demonstrate robust pricing power resulting in significant margin expansion of over 2,000 bps since 2007. CSX may benefit from several tailwinds including the anticipated growth in merchandise carload volumes, the ongoing trend of onshoring, and the potential recovery in the truck market, which is expected to bolster CSX’s intermodal business segment. If volumes improve, future return could be even better. While the railroad industry is capital intensive, CSX generates substantial free cash flow that can potentially be used to support significant capital returns. Since 2007, CSX has repurchased 45% of its outstanding shares and consistently increased its dividend at a CAGR of 13%.”

Overall, CSX ranks 8th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of CSX, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSX and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.