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

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Union Pacific (UNP - Free Report) closed at $203.57 in the latest trading session, marking a -0.89% move from the prior day. This change lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.

Prior to today's trading, shares of the railroad had lost 1.74% over the past month. This has was narrower than the Transportation sector's loss of 2.98% and the S&P 500's loss of 4.07% in that time.

Investors will be hoping for strength from Union Pacific as it approaches its next earnings release. The company is expected to report EPS of $2.62, up 1.95% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.13 billion, up 4.61% from the year-ago period.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $11.46 per share and revenue of $25.02 billion. These results would represent year-over-year changes of +1.15% and +0.59%, respectively.

Any recent changes to analyst estimates for Union Pacific should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Union Pacific is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Union Pacific is currently trading at a Forward P/E ratio of 17.93. For comparison, its industry has an average Forward P/E of 17.93, 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 1.79 right now. 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 2.06 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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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