How CSX Corporation (CSX) Can Restart Its Earnings Growth Engine

Moreover, coal hasn’t been a complete bust for CSX. Both CSX Corporation (NYSE:CSX) and peer Norfolk Southern Corp. (NYSE:NSC) have exposure to the coal-rich Appalachian region, and they’ve found emerging markets like China and India are still willing to ship coal halfway around the world as a cheaper alternative to limited supplies of oil and natural gas. Even domestically, extremely low natural-gas prices have been the primary driver of the move away from coal, and as gas prices return to more typical levels, the relative costs of dealing with side effects of coal use like pollution will encourage greater coal consumption.

When CSX Corporation (NYSE:CSX) reports earnings, watch for the company to discuss the status of its capex program and whether those improvements are starting to pay off in higher profits. In the long run, those investments will be essential for the railroad company to grow faster.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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