This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

This Omaha Stock Blows Away Berkshire Hathaway

NEW YORK (TheStreet) -- Here we sit in the year 2013 and guess what? A railroad stock is one of the leading stocks in the entire market!

Data from Best Stocks Now App

Union Pacific (UNP) is a $71.7 billion large-cap stock, whose company is headquartered in Omaha, Neb. It's also a stock I own in my conservative growth accounts.

Now you may be asking: Isn't this a stock of yesteryear, a stodgy old one? Yes, but it doesn't have the performance of the majority of stocks of yesteryear. It continues to retain its Best Stocks Now-like performance!

Data from Best Stocks Now App

During the past 10 years, UNP has delivered a 19.8% return each year to investors. The great Berkshire Hathaway (BRK.B), by contrast, has delivered 8.6% per year, during the same time!

Over the past five years, UNP has delivered an average of 17.9% per year, while the BRKB has dealt investors a 6.3% return.

Over the past three years, it's delivered almost 32% each year to shareholders as compared to BRKB's 13.5%.

Boring old UNP continues to chug along, delivering 20% to 30% per year. And in the last 12 months, UNP is up another 40.1%, earning it a momentum grade of "A-".

Data from Best Stocks Now App

Many people say that investing is all about the future. So let's take a look at UNP's valuation. While there are no guarantees that it will continue to perform well, whatsoever, UNP clearly has a proven track record (pardon the pun).

And looking to the future, we see that UNP is trading at just 14.1 times forward earnings. It is trading at a discount to the market, probably because it's not a very glamorous, "cool" stock. UNP is expected to grow by 14.2% per year over the next five years. It is trading at right around its growth rate, so it's not expensive, with a PEG ratio of 0.99.

The final piece in analyzing UNP is to take a look at its stock chart, and here I see a stock that continues to hit new highs!

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs