CSX Corporation - Railroads in America III (BUY - 80)

CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services, as well as transports intermodal containers and trailers. It transports chemicals, automotive, agricultural and food products, minerals, fertilizers, forest products, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants.

The company also exports coal to deep-water port facilities. In addition, it offers intermodal transportation services through a network of approximately 30 terminals transporting manufactured consumer goods in containers in the eastern United States; drayage services, including the pickup and delivery of intermodal shipments; and trucking dispatch services.

The company operates approximately 20,500 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,900 locomotives. It also serves production and distribution facilities through track connections.

Further, the company serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products from rail to trucks, which includes plastics and ethanol.
Additionally, it acquires, develops, sells, leases, and manages real estate properties.
CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.

CSX share price, EBITDA, institutional holdings & short interest

CSX's stock has been consistently rising due to it being a part of the railway oligopoly in the U.S. It has significant institutional holdings coupled with a low short interest. EBITDA is consistently rising and the stock enjoys a rather comfortable 0,64% correlation with the SP500.

Current analyst estimates point towards higher EPS growth over the next years;
Given the stability of the stock, and the business model relying on scarcity of railways (not likely that new railways will be built for the foreseeable future*), we give the stock a BUY-recommendation with a target price of 80$ until Q2 of 2020.