Back to top

Image: Bigstock

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

Read MoreHide Full Article

Union Pacific (UNP - Free Report) closed at $213.33 in the latest trading session, marking a +0.38% move from the prior day. This move outpaced the S&P 500's daily loss of 0.03%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the railroad had gained 8.41% in the past month. In that same time, the Transportation sector gained 11.37%, while the S&P 500 gained 6.23%.

Wall Street will be looking for positivity from Union Pacific as it approaches its next earnings report date. The company is expected to report EPS of $2.85, up 7.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.37 billion, up 11.05% from the year-ago period.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $11.52 per share and revenue of $25.06 billion. These results would represent year-over-year changes of +15.78% and +14.94%, respectively.

Investors should also note any recent changes to analyst estimates for Union Pacific. 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Union Pacific is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Union Pacific has a Forward P/E ratio of 18.44 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.25.

Meanwhile, UNP's PEG ratio is currently 1.84. 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 2.04 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 142, putting it in the bottom 44% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Union Pacific Corporation (UNP) - free report >>

Published in