According to Citi, stocks that have the potential to improve include CSX and Freeport-McMoRan. The third quarter earnings season is almost over, with 470 S&P 500 stocks reporting their results as of noon Wednesday. Of these companies, 82% announced earnings that beat analyst expectations, and nearly 76% had earnings surprises. Most stocks are doing well, but some are lagging. In a recent note, Citi identified a basket of stocks with the potential for positive earnings trends, which could be a catalyst for share prices. Stocks included in the table below had to meet the following criteria: A Russell 3000 stock with a market capitalization of at least $2 billion Has a negative quarterly earnings trendline for the past 12 quarters Has a positive quarterly earnings trendline for the next 8 quarters Has record quarterly earnings and is expected to be positive for the next eight quarters Has 2025 and 2026 sales exceeding $1 billion Products from Citi’s stock selection basket include: Rail transportation company CSX was also on the list. The stock price has increased 5% this year. Bank of America last month called the company a “best-in-class” stock and praised new CEO Steve Angell’s “strategic value creation.” “CSX is on track to post mid-teens EPS growth in 2026 as costs decline for two major projects (Howard Street Tunnel and Blue Ridge Subdivision),” analyst Ken Hexter wrote. “While CEO Steve Angell did not commit to long-term occupancy targets, he expects CSX to achieve gradual annual improvement through disciplined execution (he expects 64% in 2026 and 62% in 2027).” Hexter’s $41 price target is about 21% above where CSX stock ended Tuesday. Mining company Freeport-McMoRan also made the City’s list. The stock price has soared 8% this year. In October, HSBC upgraded the stock from hold to buy. Analyst Jonathan Brandt raised his price target to $50 from $43, suggesting the stock could rise 25% from here. Mr. Brandt attributed his rating change and the increase in the company’s expected value for the next two years to higher metal price assumptions. He said recent market volatility and significant supply disruptions will increase metal prices, particularly platinum and copper. “While we expect FCX to benefit from strong copper and gold prices, we note the recent significant underperformance and upgrade to Buy,” the analyst said. Other stocks in Citi’s basket include Dollar Tree, Electronic Arts and Lazard.
