We recently published a list of 11 Blue Chip Stocks to Invest in at 52-Week Lows. In this article, we are going to take a look at where CSX Corporation (NASDAQ:CSX) stands against other blue chip stocks to invest in at 52-week lows.
For the first time since 2023, the S&P 500 was seen in the market correction territory, according to US Bank (Wealth Management). The rapid fall surprised several investors, mainly considering the favorable underlying conditions US stocks carried into 2025. The broader markets are reacting primarily to the potential economic consequences of the Trump administration’s policies. Most critical are the new trade policies focused on raising tariffs for goods imported to the US. According to Rob Haworth, senior investment strategy director with U.S. Bank Asset Management, the uncertainty remains the key driver around the market’s recent decline. There are increased concerns related to the potential economic weakness, mainly because of tariff impacts.
Sector Performance in 2025
As per US Bank (Wealth Management), in 2023 and 2024, stocks were aided by consistent economic growth as technology stocks dominated the broader market performance. The revenues of technology companies were aided by significant spending on AI-related investment. As per Haworth, it is of utmost importance for other sectors to make increased earnings contributions. In the early months of 2025, there was a shift in investor sentiment. The sectors that supported the prior year’s market performance, i.e., IT, communication services, and consumer discretionary, have been dragging the market down.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Underlying Fundamentals Remain Strong
US Bank (Wealth Management) stated that the markets fluctuated through most of Q1 2025. That being said, by February 19, the S&P 500 gained 4.5%, says the firm. Furthermore, the firm added that YTD through March 17, the broader S&P 500’s total return was down 3.23%. This comes after 2 years of 25%+ S&P 500 total returns. Despite the uncertainty, for the time being, many underlying fundamentals remain positive. According to Eric Freedman, chief investment officer for U.S. Bank Asset Management, the consumers remain in a good spot, and companies are flush with cash.
As per Haworth, while US markets were impacted in Q1 2025, global stocks delivered positive returns. In the current environment, Haworth believes that a globally diversified portfolio places the investors in a position to capitalize on numerous opportunities. Notably, investors tend to respond to the perceived potential corporate earnings based on specific policies or events. Even though there have been struggles in early 2025, most of the underlying data is favorable.
Our Methodology
To list the 11 Blue Chip Stocks to Invest in at 52-Week Lows, we sifted through the holdings of SPDR S&P 500 ETF Trust and shortlisted the stocks trading close to their respective 52-week lows. Next, we mentioned hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A freight train moving through a rural landscape, its engine and numerous rail cars carrying the company’s cargo.
CSX Corporation (NASDAQ:CSX)
Stock Price as of March 25: $29.53
52-week Low: $28.98
Number of Hedge Fund Holders: 63
CSX Corporation (NASDAQ:CSX) provides rail-based freight transportation services. The company’s extensive rail network, mainly in the eastern United States, offers a healthy foundation for future growth. Its reach enables the company to serve a diverse range of industries and markets, placing it well to capitalize on economic expansion and transitions in trade patterns. As industrial development continues, CSX Corporation (NASDAQ:CSX) possesses the opportunity to attract new customers and increase volumes throughout product categories. Its strong emphasis on service quality can act as a critical differentiator in getting new business and retaining existing customers.
Through the consistent delivery of reliable and efficient transportation solutions, CSX Corporation (NASDAQ:CSX) is expected to potentially convert more over-the-road shipments to rail, tapping an enormous market opportunity. This transition can be appealing to customers who look to reduce their carbon footprint. This is because rail transportation is generally more fuel-efficient as compared to trucking for long-haul freight. Also, CSX Corporation (NASDAQ:CSX)’s robust network and service quality can allow it to command premium pricing for the services, mainly in markets where the company possesses a competitive advantage.
Appalaches Capital, an investment management firm, released its Q3 2024 investor letter. Here is what the fund said:
“During the quarter, we established core positions in two railroads: Canadian National Railway Company (CNI) and CSX Corporation (NASDAQ:CSX). The investment thesis is simple. Domestic railroads have not seen volume growth over the last 20 years despite being the cheapest, cleanest, and safest form of freight transportation.4 The lack of volume growth and related share losses to trucking is due to the poor reliability of the networks. However, there is strong evidence to believe that this may not be the case going forward. It seems that investors are overweighting historical characteristics of the industry and not giving credit to recent and sustainable improvements in service metrics. If the rails are able to show any sign of sustained volume growth, our investment should perform very well.
The Canadian railroads have more or less operated at full capacity over the last two decades, while the U.S. networks have not. Why is that? There are a few reasons for the anemic volume growth domestically, but only one of which is not shared by the Canadian railroads: service. In 2017, had you shipped goods by rail in Canada, the odds that your shipment would arrive on time, or the “trip plan compliance” rate, was around 90% or higher. In the U.S., these levels were closer to 50%.5 Maybe you have a different opinion, but I am not particularly excited about using a shipping service that only has a coin flip’s chance of arriving on time, even if it may be more economical…” (Click here to read the full text)
Overall, CSX ranks 5th on our list of blue chip stocks to invest in at 52-week lows. While we acknowledge the potential of CSX as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than CSX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
