The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Union Pacific (UNP - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
Union Pacific is one of 149 individual stocks in the Transportation sector. Collectively, these companies sit at #10 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. UNP is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for UNP's full-year earnings has moved 1.53% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the latest available data, UNP has gained about 22.71% so far this year. In comparison, Transportation companies have returned an average of 1.85%. This means that Union Pacific is performing better than its sector in terms of year-to-date returns.
To break things down more, UNP belongs to the Transportation - Rail industry, a group that includes 10 individual companies and currently sits at #33 in the Zacks Industry Rank. Stocks in this group have gained about 21.78% so far this year, so UNP is performing better this group in terms of year-to-date returns.
Going forward, investors interested in Transportation stocks should continue to pay close attention to UNP as it looks to continue its solid performance.