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Is Union Pacific (UNP) Stock Outpacing Its Transportation Peers This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Union Pacific (UNP - Free Report) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.

Union Pacific is one of 149 companies in the Transportation group. The Transportation group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. UNP is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for UNP's full-year earnings has moved 1.24% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, UNP has moved about 19.49% on a year-to-date basis. Meanwhile, stocks in the Transportation group have gained about 13.26% on average. This means that Union Pacific is outperforming the sector as a whole this year.

To break things down more, UNP belongs to the Transportation - Rail industry, a group that includes 10 individual companies and currently sits at #86 in the Zacks Industry Rank. On average, this group has gained an average of 18.85% so far this year, meaning that UNP is performing better in terms of year-to-date returns.

Investors in the Transportation sector will want to keep a close eye on UNP as it attempts to continue its solid performance.


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