NEW YORK (TheStreet) -- Shares of Union Pacific Corp. (UNP) - Get Report are down 3.38% to $113.48 in afternoon trading today as railroad stocks decline after Kansas City Southern (KSU) - Get Reportreduced its guidance for full year 2015.

Kansas City Southern said it now expects low single-digit revenue growth for full year 2015, down from mid single-digit growth for the year.

The railroad operator said the decrease is due to slow year-to-date carload growth from the energy sector, the continued weakening of the Mexican peso compared to the dollar, and lower fuel surcharge revenues. Kansas City Southern's stock is down more than 7%.

Other railroad stocks that are lower on the day include CSX Corp. (CSX) - Get Report, Norfolk Southern Corp. (NSC) - Get Report and Canadian National Railway (CNI) - Get Report, down over 3.5%, 2.7%, and 1.5%, respectively.

Separately, the average recommendation of 28 broker's estimates on UNP is a 1.9, with a 1 representing a "buy" rating and a 2 an "outperform," according to Reuters. The mean price target is $131.79.

TheStreet Ratings team rates UNION PACIFIC CORP 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, impressive record of earnings per share growth, 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."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• Powered by its strong earnings growth of 26.27% and other important driving factors, this stock has surged by 25.82% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UNP should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
• UNION PACIFIC CORP has improved earnings per share by 26.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNION PACIFIC CORP increased its bottom line by earning $5.76 versus $4.72 in the prior year. This year, the market expects an improvement in earnings ($6.55 versus $5.76).
• Despite its growing revenue, the company underperformed as compared with the industry average of 14.0%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
• The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Road & Rail industry and the overall market, UNION PACIFIC CORP's return on equity exceeds that of both the industry average and the S&P 500.
• 46.51% is the gross profit margin for UNION PACIFIC CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 23.25% is above that of the industry average.
• You can view the full analysis from the report here: UNP Ratings Report

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