Railroad Stocks — CSX Corp., Union Pacific, Westinghouse Air Brake Technologies

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Companies in the Railroads industry operate railroad tracks and/or trains, as well as transport cargo and passengers. These corporations are generally established and stable, and offer lower-than-average dividend yields. Today, Stock-Callers.com reviews the following equities: CSX Corp. (NASDAQ: CSX), Union Pacific Corp. (NYSE: UNP), Westinghouse Air Brake Technologies Corp. (NYSE: WAB).

 

Jacksonville, Florida-based CSX Corp.’s shares rose 0.34%, and finished last Friday’s trading session at $29.33. A total volume of 11.22 million shares was traded, which was above their three months average volume of 6.57 million shares. In the last one month and over the previous three months, the stock has advanced 4.75% and 10.35%, respectively. Additionally, the Company’s shares have gained 15.40% since the start of this year. The stock is trading above its 50-day and 200-day moving averages by 4.39% and 13.78%, respectively. Moreover, shares of CSX Corp., which together with its subsidiaries, provides rail-based transportation services in the US and Canada, have a Relative Strength Index (RSI) of 61.29.

On September 7th, 2016, CSX Executive Vice President and Chief Financial Officer Frank Lonegro provided updates on its Q3 2016 earnings expectations, full year guidance and long-term strategy for managing a changing business profile. Q3 2016 earnings per share are expected to decline slightly sequentially. Q3 2016 volume is expected to decline by high single digits year-over-year. Total coal tonnage for 2016 is now expected to decline between 20% and 25% year-over-year. Q3 2016 to be released Oct. 12th.

On Friday, shares in Omaha, Nebraska headquartered Union Pacific Corp. recorded a trading volume of 5.19 million shares, which was higher than their three months average volume of 3.74 million shares. The stock ended the session 0.60% lower at $92.38. The Company’s shares have gained 6.09% in the previous three months and 20.44% on an YTD basis. The stock is trading 11.26% above its 200-day moving average. Furthermore, shares of Union Pacific, which through its subsidiary, Union Pacific Railroad Co., operates railroads in the US, have an RSI of 41.85.

On September 16th, 2016, Union Pacific announced the early results of its private offers to exchange certain of its outstanding notes and debentures for a combination of new notes due 2051 and cash and an amendment to the Exchange Offers to increase the Exchange Offers Limit from $1,000,000,000 to $1,050,000,000.  The approximate principal amount of the Existing Notes validly tendered for exchange and not validly withdrawn, as of 5:00 p.m., ET, on September 15th, 2016, based on information provided by the exchange agent to Union Pacific, was $1,006,367,00.

Shares in Wilmerding, Pennsylvania headquartered Westinghouse Air Brake Technologies Corp. closed the day at $74.91, slightly down 0.47%. The stock recorded a trading volume of 871,532 shares. The Company’s shares have gained 3.01% in the last one month, 2.62% in the previous three months, and 5.72% on an YTD basis. The stock is trading 2.99% above its 50-day moving average and 2.48% above its 200-day moving average. Additionally, shares of Westinghouse Air Brake Technologies, which doing business as Wabtec Corp., provides technology-based equipment and services for the freight rail and passenger transit vehicle industries worldwide, have an RSI of 49.43.

On September 7th, 2016, research firm Deutsche Bank initiated a ‘Hold’ rating on the Company’s stock, issuing a target price of $90 per share.