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Union Pacific (UNP) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Union Pacific (UNP - Free Report) closed at $249.54, marking a -0.59% move from the previous day. This move lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, added 0.33%.

Heading into today, shares of the railroad had gained 7.62% over the past month, outpacing the Transportation sector's gain of 3.28% and the S&P 500's gain of 3.11% in that time.

Wall Street will be looking for positivity from Union Pacific as it approaches its next earnings report date. This is expected to be January 20, 2022. In that report, analysts expect Union Pacific to post earnings of $2.66 per share. This would mark year-over-year growth of 12.71%. Meanwhile, our latest consensus estimate is calling for revenue of $5.65 billion, up 9.85% from the prior-year quarter.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $9.97 per share and revenue of $21.7 billion. These results would represent year-over-year changes of +21.73% and +11.09%, respectively.

Investors might also notice recent changes to analyst estimates for Union Pacific. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Union Pacific is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Union Pacific is holding a Forward P/E ratio of 25.19. This valuation marks a premium compared to its industry's average Forward P/E of 24.5.

Also, we should mention that UNP has a PEG ratio of 2.52. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Rail stocks are, on average, holding a PEG ratio of 2.21 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 201, which puts it in the bottom 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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