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 1.2%. By the end of trading, Union Pacific fell $1.97 (-1.5%) to $131.99 on average volume. Throughout the day, two million shares of Union Pacific exchanged hands as compared to its average daily volume of 1.8 million shares. The stock ranged in price between $131.77-$133.48 after having opened the day at $132.75 as compared to the previous trading day's close of $133.96. Other companies within the Transportation industry that declined today were: FreeSeas ( FREE), down 11.9%, Covenant Transportation Group ( CVTI), down 7.8%, Genco Shipping & Trading ( GNK), down 7.4%, and Excel Maritime Carriers ( EXM), down 6.9%.
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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 $61.84 billion and is part of the services sector. The company has a P/E ratio of 15.9, below the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Friday. Currently there are 18 analysts that rate Union Pacific a buy, no analysts rate it a sell, and eight 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, 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.

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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