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

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Union Pacific (UNP - Free Report) closed the most recent trading day at $206.39, moving -1.82% from the previous trading session. This change lagged the S&P 500's daily loss of 0.9%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.26%.

Prior to today's trading, shares of the railroad had lost 0.18% over the past month. This has was narrower than the Transportation sector's loss of 0.58% and the S&P 500's loss of 2.66% in that time.

Wall Street will be looking for positivity from Union Pacific as it approaches its next earnings report date. This is expected to be January 24, 2023. In that report, analysts expect Union Pacific to post earnings of $2.82 per share. This would mark year-over-year growth of 6.02%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.34 billion, up 10.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.51 per share and revenue of $25.03 billion, which would represent changes of +15.68% and +14.82%, respectively, from the prior year.

Investors should also note any 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. 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 has moved 0.11% lower. Union Pacific currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Union Pacific is holding a Forward P/E ratio of 18.26. This represents a premium compared to its industry's average Forward P/E of 18.17.

We can also see that UNP currently has a PEG ratio of 1.83. 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. Transportation - Rail stocks are, on average, holding a PEG ratio of 1.98 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 148, which puts it in the bottom 42% 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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