Are Transportation Stocks Lagging CSX (CSX) This Year?

For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is CSX (CSX) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.

CSX is one of 110 companies in the Transportation group. The Transportation group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. CSX is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CSX's full-year earnings has moved 5.2% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, CSX has gained about 40.6% so far this year. Meanwhile, stocks in the Transportation group have gained about 13.8% on average. This means that CSX is outperforming the sector as a whole this year.

Another Transportation stock, which has outperformed the sector so far this year, is EuroDry (EDRY). The stock has returned 238.5% year-to-date.

The consensus estimate for EuroDry's current year EPS has increased 93.6% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

To break things down more, CSX belongs to the Transportation - Rail industry, a group that includes 9 individual companies and currently sits at #90 in the Zacks Industry Rank. This group has gained an average of 30.8% so far this year, so CSX is performing better in this area.

In contrast, EuroDry falls under the Transportation - Shipping industry. Currently, this industry has 28 stocks and is ranked #51. Since the beginning of the year, the industry has moved +55.3%.

CSX and EuroDry could continue their solid performance, so investors interested in Transportation stocks should continue to pay close attention to these stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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