The Relative Strength (RS) Rating for top-ranked CSX (CSX) railroad climbed to a new percentile Monday, rising to 71, up from 65. The rating bump came as CSX stock rose to a fresh all-time high, the latest in a series of new highs as profits and sales rise in sync with the recovering supply chain and reopening economies. It’s still within trading range.
The 71 RS Rating means that CSX stock price has outperformed 71% of all stocks over the past year. Research shows that the best stocks tend to have an RS Rating of over 80 as they begin their biggest runs. See if CSX can continue to show renewed price strength and hit that benchmark. Meanwhile, the Jacksonville, Fla.-based company’s other ratings are outstanding.
CSX Stock Among Top 8%, Leads Railroad Sector
CSX boasts a 92 EPS Rating, of a possible 99, putting it in the top 8% of all companies on recent and long-term profit growth. Similarly, its Composite Rating, a combination of IBD’s five basic ratings, is 92. Most significantly, its Accumulation/Distribution Rating, a gauge of investing by institutional investors, is A+, the best-possible on the A+ to E scale. That points to strong buying by funds and other large investors.
The railroad company, which operates a 19,500-mile rail system in the U.S. and Canada, reported 34% EPS growth in its most recent report, to 43 cents per share. Revenue grew 24% year over year to $3.292 billion.
CSX stock is trading within a buying range after moving past a 34.43 entry in a cup without handle. The proper buying range extends to 5% above the initial entry. Once a stock hits that benchmark, it’s best to hold off investing and wait for it to set up another buying opportunity.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive Relative Strength Rating from Investor’s Business Daily tracks share price performance with a 1 (worst) to 99 (best) score. The rating shows how a stock’s price performance over the last 52 weeks holds up against all the other stocks in our database.
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