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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 at $222.84 in the latest trading session, marking a +0.1% move from the prior day. This move outpaced the S&P 500's daily loss of 0.2%.

Heading into today, shares of the railroad had lost 0.95% over the past month, outpacing the Transportation sector's loss of 2.7% and lagging the S&P 500's gain of 2.11% in that time.

Investors will be hoping for strength from UNP as it approaches its next earnings release. The company is expected to report EPS of $2.34, up 40.12% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.19 billion, up 22.2% from the year-ago period.

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 recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. UNP is currently a Zacks Rank #3 (Hold).

Investors should also note UNP's current valuation metrics, including its Forward P/E ratio of 23.29. Its industry sports an average Forward P/E of 23.29, so we one might conclude that UNP is trading at a no noticeable deviation comparatively.

Investors should also note that UNP has a PEG ratio of 2.33 right now. 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. Transportation - Rail stocks are, on average, holding a PEG ratio of 2.33 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 207, which puts it in the bottom 19% 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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