|Bid||136.72 x 300|
|Ask||136.75 x 100|
|Day's Range||136.39 - 137.87|
|52 Week Range||101.06 - 143.05|
|PE Ratio (TTM)||10.22|
|Forward Dividend & Yield||2.92 (2.11%)|
|1y Target Est||N/A|
President Trump has threatened in the past to scrap the NAFTA deal unless the whole agreement is thoroughly reviewed in the present light. The Association of American Railroads is an alliance of major US railroads across North America. On NAFTA, it had written to the US President calling for constructive negotiations and maintaining in place elements that proved beneficial for the US.
Trump’s pro-growth agenda in the form of a 14% cut in corporate tax and deregulation have proved major turning points for the US economy. The corporate tax cuts from 35% to 21% could result in huge savings for US companies including railroads (IYJ). Note that US railroads such as Norfolk Southern (NSC) and CSX (CSX) receive almost 100% of their revenue from the United States. Thus, a 14% reduction in the corporate tax rate would significantly boost their cash flows.
2016 and 2017 were particularly bad for coal traffic due to the strength in the US dollar, international markets flooded with coal, and most importantly, low natural gas prices. The natural gas prices were low due to a slump in crude oil prices, which led to a switch to natural-gas-fired power plants from coal-fired power plants. Canadian Pacific Railway (CP) earned 9.9% of revenues from its coal business, whereas the commodity’s share in total carloads was 11.6% in 2017.
The Zacks Analyst Blog Highlights: Union Pacific, Kansas City, Canadian Pacific, CSX and Norfolk
The top U.S. railways regulator plans to hold a series of meetings with disgruntled shippers and other customers starting next month, after fresh complaints over service delays and higher costs from automotive and grain lobby groups. The Surface Transportation Board's last major public hearing was in October and focused on service issues at the CSX Corp railroad. Reuters reported two weeks ago that a drive to cut costs and boost margins at CSX, Norfolk Southern Corp, and Union Pacific Corp was hurting some of America's largest rail customers.
The turnaround of Freight Railroad industry can be attributed to an improvement in the coal-related scenario and a boost in intermodal volume.
In February 2018, Genesee & Wyoming’s (GWR) freight volumes from North American, European, and Australian operations were ~254,300 carloads, which represents a rise of 0.8% or 2,000 plus carloads compared with February 2017. GWR’s same-railroad carloads in the reported month expanded 0.6% to less than 254,000 carloads compared with over 252,200 carloads in February 2017.
Union Pacific temporarily grounded drones it was flying over rail yards to look for safety violations, after the railroad workers’ union urged workers to flood a company safety hotline with complaints....
Union Pacific Corp. (UNP) will invest $450 million in Texas infrastructure this year, the company announced earlier this month. The Omaha, Nebraska-based company is one of the seven Class I North American railroads. The railroad has invested more than $2.3 billion over the last five years in the Lone Star state.
Union Pacific Corp. (UNP) will invest $450 million in Texas infrastructure this year, the company announced earlier this month. The Omaha, Nebraska-based company is one of the seven Class I North American railroads. It has a significant presence in Texas and Dallas-Fort Worth specifically.
With coal and intermodal growth on an upswing, railroads are expected to perform well in 2018. The new tax law further adds to a positive view.
President Trump tours the border wall prototypes. Union Pacific Railroad Chairman and CEO Lance Fritz says the strength of the U.S. economy has created strong ties with manufacturers.