Union Pacific Corp (UNP): Today's Featured Transportation Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Union Pacific ( UNP) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day down 0.9%. By the end of trading, Union Pacific fell $1.38 (-1.1%) to $121.26 on light volume. Throughout the day, 1.4 million shares of Union Pacific exchanged hands as compared to its average daily volume of two million shares. The stock ranged in price between $121.26-$123.45 after having opened the day at $122.78 as compared to the previous trading day's close of $122.64. Other companies within the Transportation industry that declined today were: DS Torm ( TRMD), down 13.2%, Excel Maritime Carriers ( EXM), down 8.6%, Overseas Shipholding Group ( OSG), down 7.8%, and Hawaiian Holdings ( HA), down 6.3%.
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Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Union Pacific has a market cap of $57.86 billion and is part of the services sector. The company has a P/E ratio of 15.8, equal to the average transportation industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Monday. Currently there are 19 analysts that rate Union Pacific a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Union Pacific as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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