In the latest trading session, Union Pacific (UNP - Free Report) closed at $144.10, marking a +1.79% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.
Heading into today, shares of the railroad had gained 2.6% over the past month, outpacing the Transportation sector's loss of 0.82% and the S&P 500's loss of 4.06% in that time.
UNP will be looking to display strength as it nears its next earnings release, which 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, our latest consensus estimate is calling for revenue of $5.82 billion, up 6.74% from the prior-year quarter.
UNP's full-year Zacks Consensus Estimates are calling for earnings of $7.85 per share and revenue of $22.87 billion. These results would represent year-over-year changes of +35.58% and +7.7%, respectively.
Investors should also note any recent changes to analyst estimates for UNP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.35% higher. UNP is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that UNP has a Forward P/E ratio of 18.35 right now. This valuation marks a premium compared to its industry's average Forward P/E of 18.15.
We can also see that UNP currently has a PEG ratio of 1.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Transportation - Rail industry currently had an average PEG ratio of 1.5 as of yesterday's close.
The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 16, putting it in the top 6% 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.