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Opinions Don Vialoux
CSX CorpCSXBUY ON WEAKNESSSep 04, 2015
Don VialouxUnknown
$26.85
Stock price when the opinion was issued
$45.47
As of Jun 18, 2026. Market Open.
Transportation
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This is an east coast railroad, and east coast ports will get more business (west coast ports are dysfunctional). They are minting money with coal shipping; Europe has de-nuclearized, so it needs other sources of energy. A long-term investment. Is down 16% this year, but has a lot of upside.
Transportation
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WATCH
The rails are an interesting space because they are very much affected by the trade dispute with China. It has suffered a bit but then been brought back into a more reasonable valuation range. Revenues will probably drop one percent this year. He does not think it can keep going up. Let the trade issue resolve itself before stepping in.
Transportation
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They are continuing the plan that Hunter Harrison put in place to improve efficiency, drive down the operating ratio, and sell assets. Velocity is up 20% this year: trains are moving faster, which provides better service and increases capacity. CSX is improving its capital profile, with higher cash flow margins. He expects every dollar of revenue to convert to about 30 cents in the future from a historical level of 8 cents. There have been complaints from the customer (shipper) base as a result of all the cost cutting but if CSX keeps improving its operating metrics, the customers’ concerns will be resolved. (Analysts’ price target is 62.92$)
Geoff ScottOwned
Transportation
Railroads have very strong periods of seasonality. They tend to bottom right around the middle of October, and then move strongly higher right through until early January. You then have a period of time where they take a break into February, and then have another move from late February through until May. Chart shows this is clearly in a downward trend, but seems to be trying to base out at the current levels. Be patient. We are into a base building period right now. Any kind of weakness down to its recent lows is really an opportunity to be a buyer for seasonal trade, at least until January of next year.