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

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In the latest trading session, Union Pacific (UNP - Free Report) closed at $227.98, marking a +1.8% move from the previous day. This move outpaced the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 0.1%.

Coming into today, shares of the railroad had lost 1.72% in the past month. In that same time, the Transportation sector lost 4.48%, while the S&P 500 lost 5.13%.

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 $3 per share, which would represent year-over-year growth of 16.73%. Our most recent consensus estimate is calling for quarterly revenue of $6.41 billion, up 15.17% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.55 per share and revenue of $24.91 billion, which would represent changes of +16.08% and +14.25%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Union Pacific currently has a Zacks Rank of #3 (Hold).

Investors should also note Union Pacific's current valuation metrics, including its Forward P/E ratio of 19.39. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 19.39.

We can also see that UNP currently has a PEG ratio of 1.94. 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. The Transportation - Rail industry currently had an average PEG ratio of 1.83 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 gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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