NEW YORK (TheStreet) -- Union Pacific (UNP - Get Report) CEO John (Jack) Koraleski said his company's business is doing well, and TheStreet's Jim Cramer believes this success stems from its new track in Mexico.
Cramer says Union Pacific has the best Mexican import business in the world that benefits greatly from the North American Free Trade Agreement (NAFTA). He adds grain, fracking sand, and the automotive and lumber/housing sectors are doing quite well.
Cramer notes these are all good signs and points out Union Pacific stock remains inexpensive because the company must re-price multiple contracts next year. He recommends buying Union Pacific until the low $200 range.
TheStreet Ratings team agrees, as it rates Union Pacific as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNION PACIFIC CORP (UNP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."