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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 the most recent trading day at $199.09, moving +1.28% from the previous trading session. This move lagged the S&P 500's daily gain of 1.42%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 5.16%.

Heading into today, shares of the railroad had lost 5.16% over the past month, lagging the Transportation sector's loss of 2.69% and the S&P 500's gain of 0.27% in that time.

Union Pacific will be looking to display strength as it nears its next earnings release, which is expected to be April 20, 2023. On that day, Union Pacific is projected to report earnings of $2.62 per share, which would represent year-over-year growth of 1.95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.13 billion, up 4.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.43 per share and revenue of $24.91 billion. These totals would mark changes of +0.88% and +0.14%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Union Pacific. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has moved 0.22% lower. 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 17.19 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 17.19.

Meanwhile, UNP's PEG ratio is currently 1.72. 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 2.21 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% 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.

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