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Union Pacific (UNP) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Union Pacific (UNP - Free Report) closed at $218.02, marking a +1.01% move from the previous day. This move outpaced the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.16%.

Coming into today, shares of the railroad had lost 0.52% in the past month. In that same time, the Transportation sector gained 1.22%, while the S&P 500 gained 0.09%.

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 $2.83 per share, which would represent year-over-year growth of 6.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.37 billion, up 11.05% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.55 per share and revenue of $25.06 billion, which would represent changes of +16.08% and +14.94%, respectively, from the prior year.

Investors might also notice 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.

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 0.22% higher. Union Pacific is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Union Pacific has a Forward P/E ratio of 18.69 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.35.

Investors should also note that UNP has a PEG ratio of 1.87 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Rail industry currently had an average PEG ratio of 2.05 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.

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


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