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Union Pacific (UNP) Gains As Market Dips: What You Should Know

In the latest trading session, Union Pacific (UNP) closed at $212.22, marking a +0.51% move from the previous day. This move outpaced the S&P 500's daily loss of 0.19%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq lost 0.09%.

Heading into today, shares of the railroad had gained 3.49% over the past month, lagging the Transportation sector's gain of 5.88% and the S&P 500's gain of 4.7% in that time.

Investors will be hoping for strength from Union Pacific as it approaches its next earnings release. In that report, analysts expect Union Pacific to post earnings of $2.83 per share. This would mark year-over-year growth of 6.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.37 billion, up 11.05% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.52 per share and revenue of $25.06 billion, which would represent changes of +15.78% and +14.94%, respectively, from the prior year.

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Investors should also note any recent changes to analyst estimates for Union Pacific. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Union Pacific is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Union Pacific is holding a Forward P/E ratio of 18.32. Its industry sports an average Forward P/E of 17.63, so we one might conclude that Union Pacific is trading at a premium comparatively.

We can also see that UNP currently has a PEG ratio of 1.83. 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. UNP's industry had an average PEG ratio of 1.97 as of yesterday's close.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Union Pacific Corporation (UNP) : Free Stock Analysis Report

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