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Union Pacific Corporation (UNP), with a market cap of $149.07 billion, is a leading U.S. freight railroad operator. Based in Omaha, Nebraska, the company provides rail transportation services across 23 states through its principal operating company, Union Pacific Railroad Company.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and UNP fits right into that category, signifying its substantial size, stability, and dominance in the railroad industry. As a key player in transporting goods across industries, UNP benefits from long-term stability and steady revenue growth. Its ability to optimize costs and improve productivity further strengthens its market position.
However, the transportation behemoth has fallen 4.8% from its 52-week high of $258.07, which it hit on September 4. Shares of UNP have climbed 3.7% over the past three months, outperforming the SPDR S&P Transportation ETF’s (XTN) 12.6% decline over the same time frame.
Moreover, in the longer term, UNP shares have declined 3.7% over the past six months and 2.8% over the past 52 weeks. By contrast, XTN has surged 4.8% over the past six months and has declined 1.8% over the past 52 weeks.
Despite recent fluctuations, UNP has been trading well above its 50-day moving average and 200-day moving average since the end of January.
On January 23, the company’s stock surged 5.2% following its Q4 earnings release. UNP announced a 7% increase in its operating income, which amounted to $9.7 billion. Moreover, its EPS came in at $2.91, surpassing the Wall Street EPS estimates by 4.7%.
In the railroads industry, UNP’s rival, Canadian Pacific Kansas City Limited (CP), is lagging behind, declining 9.1% over the past six months and 12.1% over the past 52 weeks.
Moreover, Wall Street analysts remain moderately bullish on UNP’s prospects. The stock holds a consensus “Moderate Buy” rating from the 25 analysts covering it. The mean target of $264.80 suggests a potential upside of 7.7% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
