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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 $200.99, moving -0.23% from the previous trading session. This change lagged the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.

Coming into today, shares of the railroad had gained 1.21% in the past month. In that same time, the Transportation sector gained 1.42%, while the S&P 500 gained 3.44%.

Wall Street will be looking for positivity from Union Pacific as it approaches its next earnings report date. On that day, Union Pacific is projected to report earnings of $2.76 per share, which would represent a year-over-year decline of 5.8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.15 billion, down 1.89% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.33 per share and revenue of $24.71 billion. These totals would mark changes of 0% and -0.67%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Union Pacific. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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 0.1% lower. 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 17.79. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 17.79.

We can also see that UNP currently has a PEG ratio of 1.78. 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. The Transportation - Rail was holding an average PEG ratio of 2.3 at yesterday's closing price.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.

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