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

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 higher today making it today's featured transportation winner. The industry as a whole was unchanged today. By the end of trading, Union Pacific rose $2.47 (2%) to $123.40 on average volume. Throughout the day, 1.6 million shares of Union Pacific exchanged hands as compared to its average daily volume of two million shares. The stock ranged in a price between $121.33-$123.64 after having opened the day at $122.03 as compared to the previous trading day's close of $120.93. Other companies within the Transportation industry that increased today were: Central North Airport Group ( OMAB), up 7.1%, DS Torm ( TRMD), up 5.6%, Euroseas ( ESEA), up 5.5%, and Global Ship Lease ( GSL), up 5.3%.
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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 $57.33 billion and is part of the services sector. The company has a P/E ratio of 15.7, equal to the average transportation industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 14.1% 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 impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the negative front, Overseas Shipholding Group ( OSG), down 27.3%, Newlead Holdings ( NEWL), down 11.1%, Costamare ( CMRE), down 10.7%, and FreeSeas ( FREE), down 7.8%, were all laggards within the transportation industry with Delta Air Lines ( DAL) being today's transportation industry laggard.

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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