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 closed the day down 0.2%. By the end of trading, Union Pacific rose $1.59 (1.1%) to $147.44 on average volume. Throughout the day, 2,452,648 shares of Union Pacific exchanged hands as compared to its average daily volume of 2,088,100 shares. The stock ranged in a price between $145.27-$148.20 after having opened the day at $146.05 as compared to the previous trading day's close of $145.85. Other companies within the Transportation industry that increased today were: Rand Logistics ( RLOG), up 7.7%, Providence & Worcester Railroad Company ( PWX), up 7.0%, Diana Containerships ( DCIX), up 5.6% and Newlead Holdings ( NEWL), 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 $66.7 billion and is part of the services sector. The company has a P/E ratio of 16.7, below the S&P 500 P/E ratio of 17.7. Shares are up 16.0% year to date as of the close of trading on Friday.

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, growth in earnings per share, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Excel Maritime Carriers ( EXM), down 11.5%, Sino-Global Shipping America ( SINO), down 7.5%, Grupo Aeroportuario del Sureste S.A.B. de ( ASR), down 7.0% and Air Methods ( AIRM), down 4.7% , were all laggards within the transportation industry with United Continental Holdings ( UAL) 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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