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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 the most recent trading day at $189.69, moving -0.17% from the previous trading session. This change lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.

Coming into today, shares of the railroad had lost 5.74% in the past month. In that same time, the Transportation sector lost 4.65%, while the S&P 500 lost 3.9%.

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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Union Pacific is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Union Pacific is holding a Forward P/E ratio of 16.58. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.58.

Investors should also note that UNP has a PEG ratio of 1.66 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. UNP's industry had an average PEG ratio of 1.97 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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