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

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Union Pacific (UNP) closed the most recent trading day at $206.71, moving +0.1% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the railroad had lost 0.95% in the past month. In that same time, the Transportation sector lost 2.87%, while the S&P 500 lost 1.89%.

Investors will be hoping for strength from Union Pacific as it approaches its next earnings release, which is expected to be July 21, 2022. In that report, analysts expect Union Pacific to post earnings of $2.87 per share. This would mark year-over-year growth of 5.51%. Meanwhile, our latest consensus estimate is calling for revenue of $6.18 billion, up 12.27% from the prior-year quarter.

UNP's full-year Zacks Consensus Estimates are calling for earnings of $11.56 per share and revenue of $24.54 billion. These results would represent year-over-year changes of +16.18% and +12.53%, respectively.

It is also important to note the recent changes to analyst estimates for Union Pacific. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 0.91% lower within the past month. Union Pacific currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Union Pacific has a Forward P/E ratio of 17.86 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.67.

We can also see 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. Transportation - Rail stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.

The Transportation - Rail industry is part of the Transportation sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 30% 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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