CSX Corporation (CSX) is currently mired in multiple headwinds, which, we believe, have made it an unimpressive investment option.

Let’s delve deeper.

Southward Earnings Estimate Revision: The Zacks Consensus Estimate for current-quarter earnings has moved 8.8% south in the past 90 days. For the current year, the consensus mark for earnings has been revised 9.8% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.

Dim Price Performance:  The company’s price trend reveals that its shares have lost 14.2% over the past six months compared with the transportation-rail industry’s 6.5% decline.

Six-Month CSX Stock Price Comparison

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Weak Zacks Rank and Style Score: CSX currently carries a Zacks Rank #4 (Sell). The company’s current Value Score of D shows its unattractiveness.

Negative Earnings Surprise History: CSX has a disappointing earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in three of the last four quarters (outpaced the mark in the remaining quarter), delivering an average miss of 3.13%.

Earnings Expectations: Downbeat earnings expectations cast a shadow over a company’s prospects. For second-quarter 2025, CSX’s earnings are expected to decline 16.3% year over year. For 2025, CSX’s earnings are expected to decline 9.8% year over year.

Other Headwinds: CSX’s prospects are being primarily hurt by the soft coal market. The weak coal market has resulted in below-par coal revenues. Coal revenues fell 27% year over year in the first quarter of 2025. Coal volumes decreased 9% year over year.

Rail network issues due to headwinds like locomotive or crew/labor shortages and other service disruptions represent a major challenge for CSX. Network issues or supply chain constraints are likely to adversely impact service levels, in turn, hurting operating efficiency or volume of shipments.

Elevated capital expenditures also represent a cause of worry. CSX's management expects 2025 capex to be approximately $2.5 billion. CSX shares are more volatile than the market. The combination of weak coal market, rail network issues and high capex casts a shadow over CSX's investment prospects.

Stocks to Consider

Investors interested in the Transportation sector may also consider Copa Holdings CPA and Ryanair RYAAY.

CPA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

CPA has an expected earnings growth rate of 13.1% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 16.5% year to date.

RYAAY currently sports a Zacks Rank #1.

The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, delivering an average beat of 44.5%. Shares of RYAAY have rallied 15.6% year to date.

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Ryanair Holdings PLC (RYAAY) : Free Stock Analysis Report

CSX Corporation (CSX) : Free Stock Analysis Report

Copa Holdings, S.A. (CPA) : Free Stock Analysis Report

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

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