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Union Pacific (UNP) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Union Pacific (UNP) closed at $205.52, marking a -0.58% move from the previous day. This change lagged the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the railroad had lost 1.49% in the past month. In that same time, the Transportation sector lost 0.6%, while the S&P 500 gained 1.51%.

Wall Street will be looking for positivity from Union Pacific as it approaches its next earnings report date. This is expected to be July 21, 2022. On that day, Union Pacific is projected to report earnings of $2.87 per share, which would represent year-over-year growth of 5.51%. Meanwhile, our latest consensus estimate is calling for revenue of $6.15 billion, up 11.71% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.56 per share and revenue of $24.57 billion. These totals would mark changes of +16.18% and +12.67%, respectively, from last year.

Any recent changes to analyst estimates for Union Pacific should also be noted by investors. 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. The Zacks Consensus EPS estimate has moved 0.91% lower within the past month. Union Pacific currently has a Zacks Rank of #3 (Hold).

Investors should also note Union Pacific's current valuation metrics, including its Forward P/E ratio of 17.88. This valuation marks a premium compared to its industry's average Forward P/E of 17.69.

It is also worth noting that UNP currently has a PEG ratio of 1.79. 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 was holding an average PEG ratio of 1.79 at yesterday's closing price.

The Transportation - Rail industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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