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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 $213.85, marking a -0.89% move from the previous day. This change lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.11%.

Heading into today, shares of the railroad had lost 3.02% over the past month, lagging the Transportation sector's loss of 0.09% and the S&P 500's loss of 0.62% in that time.

Investors will be hoping for strength from Union Pacific as it approaches its next earnings release, which is expected to be July 21, 2022. The company is expected to report EPS of $2.93, up 7.72% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.22 billion, up 13.08% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.61 per share and revenue of $24.57 billion. These totals would mark changes of +16.68% and +12.68%, respectively, from last year.

Investors should also note any 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. Union Pacific is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Union Pacific has a Forward P/E ratio of 18.58 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 18.58.

It is also worth noting that UNP currently has a PEG ratio of 1.86. 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. The Transportation - Rail industry currently had an average PEG ratio of 1.86 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% 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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