CSX Corporation (CSX) Showed Resilience Amid Market Uncertainty

Appalaches Capital, an investment management firm, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Appalaches Core LO ended the quarter with a loss of 0.5% after all fees and expenses compared to the S&P 500’s decline of 4.3%, the equal-weighted S&P 500’s loss of 0.6%, and the SOFR Index return of 1.1% in the 1st quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Appalaches Capital highlighted stocks such as CSX Corporation (NASDAQ:CSX). CSX Corporation (NASDAQ:CSX) is a company that offers rail-based freight transportation services. The one-month return of CSX Corporation (NASDAQ:CSX) was 12.30%, and its shares lost 3.60% of their value over the last 52 weeks. On June 3, 2025, CSX Corporation (NASDAQ:CSX) stock closed at $31.86 per share, with a market capitalization of $59.851 billion.

Appalaches Capital stated the following regarding CSX Corporation (NASDAQ:CSX) in its Q1 2025 investor letter:

“Both Canadian National and CSX Corporation (NASDAQ:CSX) are exposed to imported freight volumes, yet both have held up well despite the fact. With an increase in port fees for Chinese ships in the U.S., Mexican and Canadian ports on the Pacific Coast will likely see more volume, the latter of which benefits Canadian National. Both Canadian National and CSX are positioned to benefit from a tightening trucking market with tender rejections rising. CSX recently suggested that any rebound in industrial production resulting from the tariffs would be highly constructive for East Coast volumes. Similar to Lithia, near-term risks certainly exist, but the valuation is very agreeable from a longer-term perspective.”

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A freight train moving through a rural landscape, its engine and numerous rail cars carrying the company’s cargo.

CSX Corporation (NASDAQ:CSX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held CSX Corporation (NASDAQ:CSX) at the end of the first quarter, which was 63 in the previous quarter. While we acknowledge the potential of CSX Corporation (NASDAQ:CSX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered CSX Corporation (NASDAQ:CSX) and shared the list of best railroad stocks to buy according to billionaires. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.