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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 $232.41 in the latest trading session, marking a +0.49% move from the prior day. This change outpaced the S&P 500's 0.67% loss on the day. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq lost 0.13%.

Coming into today, shares of the railroad had gained 1.75% in the past month. In that same time, the Transportation sector gained 6.21%, while the S&P 500 gained 3.65%.

Investors will be hoping for strength from Union Pacific as it approaches its next earnings release. The company is expected to report EPS of $3, up 16.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.41 billion, up 15.17% from the year-ago period.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $11.55 per share and revenue of $24.91 billion. These results would represent year-over-year changes of +16.08% and +14.25%, respectively.

Investors should also note any recent changes to analyst estimates for Union Pacific. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 0.27% lower. Union Pacific is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Union Pacific currently has a Forward P/E ratio of 20.02. For comparison, its industry has an average Forward P/E of 20.02, which means Union Pacific is trading at a no noticeable deviation to the group.

We can also see that UNP currently has a PEG ratio of 2. 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 1.92 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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