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

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Union Pacific (UNP - Free Report) closed the most recent trading day at $224.95, moving +0.22% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.36%.

Heading into today, shares of the railroad had gained 0.4% over the past month, lagging the Transportation sector's gain of 3.35% and the S&P 500's gain of 0.75% in that time.

Investors will be hoping for strength from UNP as it approaches its next earnings release. On that day, UNP is projected to report earnings of $2.34 per share, which would represent year-over-year growth of 40.12%. Meanwhile, our latest consensus estimate is calling for revenue of $5.19 billion, up 22.2% from the prior-year quarter.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $9.56 per share and revenue of $21.19 billion. These results would represent year-over-year changes of +16.73% and +8.49%, respectively.

Investors might also notice recent changes to analyst estimates for UNP. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. UNP is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that UNP has a Forward P/E ratio of 23.48 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 23.48.

It is also worth noting that UNP currently has a PEG ratio of 2.35. 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 2.35 based on yesterday's closing prices.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 232, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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