This story originally appeared on Zacks
In the last trading session, Union Pacific (UNP) closed at $252.79, recording a move of 0.3% from the day before. This change outpaced the S&P 500’s loss of 1.94% today. Meanwhile, the Dow Jones lost 1.07%, and the tech-heavy Nasdaq lost 0.39%.
As the day started, railroad stocks were up 1.84% in the last month. At the same time, the transportation sector rose 5.57%, while the S&P 500 rose 5.72%.
Union Pacific will be looking to show strength as it nears its next earnings release, which is expected to be January 20, 2022. On that day, Union Pacific is expected to report earnings of $2.65 per share, which will represent year over year growth of 12.29 %. Meanwhile, Zacks revenue estimates forecast net sales of $5.64 billion, up 9.75% from the same period last year.
Investors should also note any recent changes to Union Pacific analyst estimates. These reviews usually reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive rating reviews as a good sign of the company’s business outlook.
Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.
The Zacks Rank system ranges from #1 (strong buy) to #5 (strong sell). The company has a successful and externally audited track record, with the No. 1 stock generating an average annual return of over 25% since 1988. In the past 30 days, our EPS aligned forecast is up 0.07%. Union Pacific is Zacks rated 3rd (Hold) at the moment.
Investors should also note Union Pacific’s current valuation metrics, including a forward price-to-earnings ratio of 22.47. This valuation represents a premium over the industry’s forward P/E average of 21.87.
It is also worth noting that UNP currently has a PEG ratio of 2.25. This metric is used similarly to the popular P/E ratio, but the PEG ratio also takes into account the expected earnings growth rate for the stock. Transportation – Rail was holding an average peg ratio (PEG) of 1.89 at yesterday’s closing price.
Transportation – The railway industry is part of the transportation sector. This group has a Zacks Industry Rating of 105, placing it in the top 42% of all 250+ industries.
Zacks Industry Ranking measures the strength of our industry groups by measuring the average Zacks rating of the individual stocks within the groups. Our research shows that industries ranked 50% 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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