This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: Looks Like We're Holding Our Own

Stocks in this article: UNPMWEKSU

Editor's Note: This article was originally published at 9:15 a.m. EDT on Real Money on May 24. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) -- If you ask me, we could do worse than 2% to 2.5% growth. That's the level of activity that Union Pacific (UNP) CEO Jack Koraleski thinks we can do in this country, and I believe that will result in a steady turn over time. Nothing rapid, but no slippage either. That pretty much jibes with the solid durable-goods numbers we just got Friday.

Why do I believe Koraleski has a bead on things? Because he's just about the biggest shipper of building materials, coal, oil, grain, chemicals and autos -- and that's pretty much everything that gives you a feel for what a nation can grow.

I was incredibly encouraged after speaking with Koraleski, because he is at the heart of the changing face of American industry due to the energy boom. Given the tight environmental noose on many pipeline developments, Union Pacific has stepped up by building new track everywhere and linking the wellhead to the refineries. That's a ton of jobs. I know from Frank Semple -- CEO of Markwest (MWE), a master limited partnership company -- that plenty of pipeline is still being laid, 18 projects worth multibillions just by Markwest alone. But the railcar imperative grows by the find -- and the runs from Texas (Eagle Ford) to Los Angeles, and from the Bakken to Louisiana, are really Union Pacific-dominated.

There's also a feverish building of chemical plants in the Southeast to take advantage of all of the natural gas and natural gas liquids being found, turning the materials into plastic and those oily materials. All are going Union Pacific's way.

Just the sheer volume of oil shipped is pretty amazing. Union Pacific moved more oil this quarter than it did all of 2011, and it is just beginning to ramp. If the Keystone pipeline doesn't get built, by the way, that oil will come via Union Pacific. If it does get built, this company will ship the pipe.

Autos isn't really an American story, unfortunately. The North American Free Trade Agreement (NAFTA) has given Mexico such an edge that I expect far fewer jobs to be generated from autos than what would otherwise have occurred at this stage of the cycle. However, Union Pacific is the shipper that controls Mexico -- through partnerships with Kansas City Southern (KSU) -- and that business is growing very quickly.

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
DOW 16,721.16 +259.84 1.58%
S&P 500 1,955.22 +28.11 1.46%
NASDAQ 4,458.6490 +75.8020 1.73%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs