In the latest trading session, Union Pacific (UNP - Free Report) closed at $150.25, marking a -1.4% move from the previous day. This change lagged the S&P 500's 0.92% loss on the day. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.65%.
Heading into today, shares of the railroad had gained 0.2% over the past month, outpacing the Transportation sector's loss of 4.04% and the S&P 500's loss of 2.56% in that time.
Wall Street will be looking for positivity from UNP as it approaches its next earnings report date. This is expected to be January 24, 2019. On that day, UNP is projected to report earnings of $2.06 per share, which would represent year-over-year growth of 34.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.82 billion, up 6.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.84 per share and revenue of $22.87 billion, which would represent changes of +35.41% and +7.7%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UNP. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. UNP is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, UNP currently has a Forward P/E ratio of 19.43. This valuation marks a premium compared to its industry's average Forward P/E of 18.76.
We can also see that UNP currently has a PEG ratio of 1.82. 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 industry currently had an average PEG ratio of 1.55 as of yesterday's close.
The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.
To follow UNP in the coming trading sessions, be sure to utilize Zacks.com.