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Union Pacific (UNP) Gains But Lags Market: What You Should Know

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Union Pacific (UNP - Free Report) closed at $228.79 in the latest trading session, marking a +0.36% move from the prior day. This change lagged the S&P 500's 1.83% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.

Heading into today, shares of the railroad had lost 0.22% over the past month, outpacing the Transportation sector's loss of 4.41% and the S&P 500's loss of 5.51% in that time.

Investors will be hoping for strength from Union Pacific as it approaches its next earnings release. In that report, analysts expect Union Pacific to post earnings of $3 per share. This would mark year-over-year growth of 16.73%. Meanwhile, our latest consensus estimate is calling for revenue of $6.41 billion, up 15.17% from the prior-year quarter.

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.

It is also important to note the recent changes to analyst estimates for Union Pacific. These recent revisions tend to reflect the evolving nature of short-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.

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 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 19.73. For comparison, its industry has an average Forward P/E of 19.73, which means Union Pacific is trading at a no noticeable deviation to the group.

Investors should also note that UNP has a PEG ratio of 1.97 right now. 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 1.82 based on yesterday's closing prices.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 168, 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.

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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