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Union Pacific (UNP) Gains But Lags Market: What You Should Know

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Union Pacific (UNP - Free Report) closed the most recent trading day at $212.63, moving +1.39% from the previous trading session. This move lagged the S&P 500's daily gain of 1.5%. Elsewhere, the Dow gained 1.12%, while the tech-heavy Nasdaq added 0.32%.

Prior to today's trading, shares of the railroad had lost 5.4% over the past month. This has was narrower than the Transportation sector's loss of 9.63% and the S&P 500's loss of 6.54% in that time.

Union Pacific will be looking to display strength as it nears its next earnings release, which 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. Meanwhile, our latest consensus estimate is calling for revenue of $6.22 billion, up 13.08% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.58 per share and revenue of $24.57 billion, which would represent changes of +16.38% and +12.68%, respectively, from the prior year.

Any recent changes to analyst estimates for Union Pacific should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 0.78% lower. Union Pacific currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Union Pacific has a Forward P/E ratio of 18.12 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.78.

Investors should also note that UNP has a PEG ratio of 1.81 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Rail industry currently had an average PEG ratio of 1.81 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 20% 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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