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 up 0.4%. By the end of trading, Union Pacific fell $1.94 (-1.4%) to $137.02 on average volume. Throughout the day, 1.9 million shares of Union Pacific exchanged hands as compared to its average daily volume of 1.9 million shares. The stock ranged in price between $136.25-$139.23 after having opened the day at $138.89 as compared to the previous trading day's close of $138.96. Other companies within the Transportation industry that declined today were: Era Group ( ERA), down 4.2%, DryShips ( DRYS), down 3.5%, Eagle Bulk Shipping ( EGLE), down 3.2%, and Newlead Holdings ( NEWL), down 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 $65.27 billion and is part of the services sector. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Shares are up 10.5% year to date as of the close of trading on Wednesday. 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, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, FreeSeas ( FREE), up 25.8%, TOP Ships ( TOPS), up 6.4%, Gol Intelligent Airlines ( GOL), up 6%, and Safe Bulkers ( SB), up 5.5%, were all gainers within the transportation industry with Canadian Pacific Railway ( CP) being today's featured transportation industry leader.

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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