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

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In the latest trading session, Union Pacific (UNP - Free Report) closed at $257.66, marking a -1.48% move from the previous day. This change lagged the S&P 500's daily loss of 0.74%.

Heading into today, shares of the railroad had gained 9.51% over the past month, outpacing the Transportation sector's loss of 2.21% and the S&P 500's loss of 4.6% 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 $2.50 per share, which would represent year-over-year growth of 25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.61 billion, up 12.22% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.47 per share and revenue of $23.67 billion, which would represent changes of +15.28% and +8.56%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Union Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. Union Pacific is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Union Pacific is holding a Forward P/E ratio of 22.81. For comparison, its industry has an average Forward P/E of 19.47, which means Union Pacific is trading at a premium to the group.

Investors should also note that UNP has a PEG ratio of 2.28 right now. 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. Transportation - Rail stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow UNP in the coming trading sessions, be sure to utilize Zacks.com.


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