Stocks that could be turning their earnings fortunes around include CSX and Freeport-McMoRan , according to Citi. The third-quarter earnings season is nearly over, with 470 stocks in the S & P 500 having reported results as of midday Wednesday. Of these companies, 82% have posted earnings that have exceeded analysts’ expectations, while nearly 76% have posted a revenue surprise to the upside. Even though stocks have fared well for the most part, some are lagging. In a recent note, Citi identified a basket of stocks where earnings trends may be poised to turn positive, which could serve as a catalyst for the stock. To be included in the table below, stocks had to meet the following criteria: Be a constituent of the Russell 3000 and have at least $2 billion in market capitalization Have a negative quarterly earnings trendline slope over the prior 12 quarters Have a positive quarterly earnings trendline slope over the next eight quarters Have a new quarterly earnings high, and positive, expected to be set in the next eight quarters Have more than $1 billion in 2025 and 2026 sales Select stocks from Citi’s basket are shown below: Rail transportation company CSX was one name on the list. Shares have added 5% this year. Last month, Bank of America said it was a “best-in-class” stock, and applauded new CEO Steve Angel’s “strategic value creation.” “With costs from two major projects falling away (Howard Street Tunnel, and Blue Ridge subdivision), CSX looks set to post mid-teens EPS growth in 2026,” wrote analyst Ken Hoexter. “CEO Steve Angel did not commit to a long-term operating ratio target, but anticipates CSX to achieve incremental annual improvement through disciplined execution (we expect 64% in ’26e, and 62% in ’27e).” Hoexter’s $41 price target is about 21% above where shares of CSX ended on Tuesday. Mining company Freeport-McMoRan was another name on Citi’s list. The stock has popped 8% this year. In October, HSBC upgraded the stock to buy from hold. Analyst Jonathan Brandt’s $50 price target — up from $43 — implies shares could rally 25% from here. Brandt attributed his rating change and the increase in the company’s estimates over the next two years to higher price assumptions for metals. He said recent market volatility and significant supply disruptions will drive metals prices higher, particularly for platinum and copper. “We expect FCX to benefit from the strength in copper and gold prices, and note the significant recent underperformance; we upgrade to Buy,” the analyst said. Other stocks in Citi’s basket include Dollar Tree , Electronic Arts and Lazard .
