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Union Pacific (UNP) Stock Sinks As Market Gains: What You Should Know

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Union Pacific (UNP - Free Report) closed at $209.72 in the latest trading session, marking a -0.21% move from the prior day. This change lagged the S&P 500's daily gain of 0.36%. Elsewhere, the Dow gained 0.23%, while the tech-heavy Nasdaq lost 0.1%.

Coming into today, shares of the railroad had lost 8.12% in the past month. In that same time, the Transportation sector lost 8.76%, while the S&P 500 lost 6.59%.

Wall Street will be looking for positivity from Union Pacific as it approaches its next earnings report date. This is expected to be July 21, 2022. The company is expected to report EPS of $2.90, up 6.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.22 billion, up 13.08% from the year-ago period.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $11.58 per share and revenue of $24.57 billion. These results would represent year-over-year changes of +16.38% and +12.68%, respectively.

Investors might also notice recent changes to analyst estimates for Union Pacific. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.78% lower. Union Pacific is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note Union Pacific's current valuation metrics, including its Forward P/E ratio of 18.16. This valuation marks a premium compared to its industry's average Forward P/E of 17.95.

Also, we should mention that UNP has a PEG ratio of 1.82. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Rail industry currently had an average PEG ratio of 1.82 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 208, which puts it in the bottom 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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