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Susquehanna Sees CSX Refocusing on Fundamentals Under New CEO

CSX Corporation (NASDAQ:CSX) is included among the 12 Most Profitable Dividend Stocks to Buy in 2026.

On January 23, Susquehanna lifted its price target on CSX Corporation (NASDAQ:CSX) to $39 from $38 and kept a Neutral rating. The update came after the company’s fourth-quarter results. Under new CEO Steve Angel, the firm said CSX is focusing on the basics that tend to matter over time, including lower costs, better returns on invested capital, and stronger cash flow. If management delivers, that groundwork could also improve long-term strategic flexibility.

CSX reported its earnings a day earlier, and the quarter was mixed. Revenue and profit both missed expectations as weaker industrial demand and lower export coal volumes offset pricing gains and solid intermodal traffic. That backdrop is not unique to CSX. Rail operators across the US have been dealing with soft industrial activity and uneven freight volumes, forcing a sharper focus on expenses and operating efficiency.

CEO Steve Angel said the quarter reflected that environment, along with steps already taken to adjust the cost base. He added that the company plans to lean harder into productivity, cost control, and capital discipline in 2026.

Management also forecast operating margin expansion of 200 to 300 basis points in 2026 compared with adjusted 2025 levels. That outlook was enough to lift the stock about 3.2% in extended trading.

CSX posted an operating margin of 31.6% for the quarter, up 30 basis points from a year earlier. Revenue totaled $3.50 billion, falling short of the $3.54 billion analysts were expecting.

CSX Corporation (NASDAQ:CSX) is a transportation company that provides rail, intermodal, and rail-to-truck transload services across its network.

While we acknowledge the potential of CSX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSX and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Dividend Contenders List: Top 20 Stocks and 15 Best High Yield Stocks To Buy.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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