/Union%20Pacific%20Corp_%20logo%20on%20phone-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Omaha, Nebraska-based Union Pacific Corporation (UNP) is a leading transportation company renowned for its extensive rail network and critical role in freight transport across the United States. With a market cap of $139.69 billion, Union Pacific stands as one of the most influential players in the rail transport industry. Competing vigorously with other major rail companies, Union Pacific's main rivals include CSX Corporation (CSX), which dominates the eastern rail market.
Companies worth $10 billion or more are generally considered "large-cap" stocks, and Union Pacific exemplifies this category, signifying its substantial size, stability, and dominance in the rail transport industry. The company has solidified its market leadership and driven growth through operational efficiency, strategic investments in infrastructure, and advancements in technology, ensuring its resilience in a competitive and evolving transportation landscape.
Shares of Union Pacific have dropped 11.5% from their 52-week high of $258.66, reached on Feb. 26. Over the past three months, UNP's shares have tumbled 7.5%, significantly underperforming the broader Nasdaq Composite ($NASX), which gained 6.9% during the same period.
Longer term, UNP has declined 6.8% on a YTD basis, while the shares are now holding onto a gain of 14.7% over the past 52 weeks. In comparison, the Nasdaq is up 14.5% in 2024 and 29.7% over the past year.
To confirm the recent bearish price trend, UNP has been trading below its 50-day moving average since late May and its 200-day moving average since the beginning of this month.
UNP's recent outperformance can be attributed to its better-than-expected Q1 results released on April 25. While the stock saw a 5% gain on the announcement day, it has experienced a downtrend since then. The company reported first-quarter earnings of $1.64 billion, translating to a profit of $2.69 per share, surpassing Wall Street expectations. Additionally, the company posted revenue of $6.03 billion, exceeding the $6 billion forecasted by analysts.
To emphasize the stock’s overall underperformance, rival CSX has outperformed UNP. CSX stock is down 5% on a YTD basis.
Analysts are moderately optimistic about UNP's prospects despite the weak price performance. The stock has a consensus rating of "Moderate Buy" from 20 analysts in coverage. The mean price target of $262.45 reflects a 14.6% premium over current levels.
On the date of publication, Rashmi Kumari 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.
