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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 $193.10 in the latest trading session, marking a -0.06% move from the prior day. This move lagged the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Coming into today, shares of the railroad had lost 0.17% in the past month. In that same time, the Transportation sector lost 0.39%, while the S&P 500 gained 2.12%.
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 $2.76 per share, which would represent a year-over-year decline of 5.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.15 billion, down 1.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.34 per share and revenue of $24.71 billion. These totals would mark changes of +0.09% and -0.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Union Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Union Pacific is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Union Pacific is currently trading at a Forward P/E ratio of 17.04. Its industry sports an average Forward P/E of 17.04, so we one might conclude that Union Pacific is trading at a no noticeable deviation comparatively.
Also, we should mention that UNP has a PEG ratio of 1.7. 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. Transportation - Rail stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Union Pacific (UNP) Stock Sinks As Market Gains: What You Should Know
Union Pacific (UNP - Free Report) closed at $193.10 in the latest trading session, marking a -0.06% move from the prior day. This move lagged the S&P 500's daily gain of 1.31%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Coming into today, shares of the railroad had lost 0.17% in the past month. In that same time, the Transportation sector lost 0.39%, while the S&P 500 gained 2.12%.
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 $2.76 per share, which would represent a year-over-year decline of 5.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.15 billion, down 1.89% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.34 per share and revenue of $24.71 billion. These totals would mark changes of +0.09% and -0.66%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Union Pacific. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. Union Pacific is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Union Pacific is currently trading at a Forward P/E ratio of 17.04. Its industry sports an average Forward P/E of 17.04, so we one might conclude that Union Pacific is trading at a no noticeable deviation comparatively.
Also, we should mention that UNP has a PEG ratio of 1.7. 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. Transportation - Rail stocks are, on average, holding a PEG ratio of 2.27 based on yesterday's closing prices.
The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.