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

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Union Pacific (UNP - Free Report) closed at $239.46 in the latest trading session, marking a -0.14% move from the prior day. This change lagged the S&P 500's 1.32% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq lost 0.15%.

Prior to today's trading, shares of the railroad had lost 0.67% over the past month. This has was narrower than the Transportation sector's loss of 2.97% and lagged the S&P 500's gain of 3.61% in that time.

Union Pacific will be looking to display strength as it nears its next earnings release. On that day, Union Pacific is projected to report earnings of $2.70 per share, which would represent year-over-year growth of 14.41%. Our most recent consensus estimate is calling for quarterly revenue of $5.65 billion, up 9.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.99 per share and revenue of $21.72 billion. These totals would mark changes of +21.98% and +11.18%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Union Pacific. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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% higher within the past month. Union Pacific currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Union Pacific has a Forward P/E ratio of 24 right now. This represents a discount compared to its industry's average Forward P/E of 24.35.

Investors should also note that UNP has a PEG ratio of 2.4 right now. 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. UNP's industry had an average PEG ratio of 2.21 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 231, putting it in the bottom 10% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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

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