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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 $151.49, moving +0.04% from the previous trading session. This change lagged the S&P 500's 0.22% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Heading into today, shares of the railroad had gained 1.96% over the past month, outpacing the Transportation sector's gain of 0.69% and the S&P 500's loss of 0.57% in that time.

Investors will be hoping for strength from UNP as it approaches its next earnings release, which is expected to be January 24, 2019. In that report, analysts expect UNP to post earnings of $2.06 per share. This would mark year-over-year growth of 34.64%. Meanwhile, our latest consensus estimate is calling for revenue of $5.82 billion, up 6.74% from the prior-year quarter.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $7.84 per share and revenue of $22.87 billion. These results would represent year-over-year changes of +35.41% and +7.7%, respectively.

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

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.

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 0.41% higher. UNP is currently a Zacks Rank #2 (Buy).

Investors should also note UNP's current valuation metrics, including its Forward P/E ratio of 19.31. For comparison, its industry has an average Forward P/E of 18.81, which means UNP is trading at a premium to the group.

It is also worth noting that UNP currently has a PEG ratio of 1.81. 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. The Transportation - Rail was holding an average PEG ratio of 1.56 at yesterday's closing price.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 51, which puts it in the top 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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