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Union Pacific (UNP) Dips More Than Broader Markets: What You Should Know

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Union Pacific (UNP - Free Report) closed the most recent trading day at $245.74, moving -1.09% from the previous trading session. This move lagged the S&P 500's daily loss of 0.91%. Elsewhere, the Dow lost 0.89%, while the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the railroad had gained 2.48% over the past month, outpacing the Transportation sector's loss of 1.63% and the S&P 500's gain of 1.55% in that time.

Union Pacific will be looking to display strength as it nears its next earnings release. On that day, Union Pacific is projected to report earnings of $2.66 per share, which would represent year-over-year growth of 12.71%. Our most recent consensus estimate is calling for quarterly revenue of $5.65 billion, up 9.85% from the year-ago period.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $9.97 per share and revenue of $21.7 billion. These results would represent year-over-year changes of +21.73% and +11.09%, respectively.

Investors should also note any recent changes to analyst estimates for Union Pacific. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.27% lower. Union Pacific is currently a Zacks Rank #3 (Hold).

Investors should also note Union Pacific's current valuation metrics, including its Forward P/E ratio of 24.93. This represents a premium compared to its industry's average Forward P/E of 24.46.

Meanwhile, UNP's PEG ratio is currently 2.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. UNP's industry had an average PEG ratio of 2.23 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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