Stock of the Day

October 17, 2022

Union Pacific (UNP)

$223.63
+$2.98 (+1.3%)
Market Cap: $133.42B

About Union Pacific

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. Union Pacific Corporation was founded in 1862 and is headquartered in Omaha, Nebraska.

Union Pacific Bull Case

Here are some ways that investors could benefit from investing in Union Pacific Co.:

  • The stock has received multiple "buy" ratings from analysts, indicating strong confidence in its future performance.
  • Union Pacific Co. has a solid market capitalization, which reflects its stability and potential for growth in the railroad industry.
  • The current stock price is around $219, which may present a buying opportunity for investors looking for value.
  • Recent dividend announcements show a commitment to returning value to shareholders, with a quarterly dividend of $1.34 per share, translating to an annualized yield of approximately 2.45%.
  • Analysts forecast a positive earnings outlook, with expectations of earnings per share reaching approximately 11.99 for the current year, suggesting potential profitability.

Union Pacific Bear Case

Investors should be bearish about investing in Union Pacific Co. for these reasons:

  • The stock has recently traded down, indicating potential volatility and uncertainty in the market.
  • Union Pacific Co. reported earnings that missed consensus estimates, which may raise concerns about its operational performance.
  • The company has a relatively high debt-to-equity ratio, suggesting that it relies significantly on debt financing, which can be risky in fluctuating economic conditions.
  • Revenue has shown a slight decline compared to the previous year, which could indicate challenges in maintaining growth.
  • With a mix of ratings from analysts, including some hold and sell ratings, there may be differing opinions on the stock's future performance, leading to uncertainty for investors.
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