This Omaha Stock Blows Away Berkshire Hathaway

NEW YORK (TheStreet) -- Here we sit in the year 2013 and guess what? A railroad stock is one of the leading stocks in the entire market!

Data from Best Stocks Now App

Union Pacific ( UNP) is a $71.7 billion large-cap stock, whose company is headquartered in Omaha, Neb. It's also a stock I own in my conservative growth accounts.

Now you may be asking: Isn't this a stock of yesteryear, a stodgy old one? Yes, but it doesn't have the performance of the majority of stocks of yesteryear. It continues to retain its Best Stocks Now-like performance!

Data from Best Stocks Now App

During the past 10 years, UNP has delivered a 19.8% return each year to investors. The great Berkshire Hathaway ( BRK.B), by contrast, has delivered 8.6% per year, during the same time!

Over the past five years, UNP has delivered an average of 17.9% per year, while the BRKB has dealt investors a 6.3% return.

Over the past three years, it's delivered almost 32% each year to shareholders as compared to BRKB's 13.5%.

Boring old UNP continues to chug along, delivering 20% to 30% per year. And in the last 12 months, UNP is up another 40.1%, earning it a momentum grade of "A-".

Data from Best Stocks Now App

Many people say that investing is all about the future. So let's take a look at UNP's valuation. While there are no guarantees that it will continue to perform well, whatsoever, UNP clearly has a proven track record (pardon the pun).

And looking to the future, we see that UNP is trading at just 14.1 times forward earnings. It is trading at a discount to the market, probably because it's not a very glamorous, "cool" stock. UNP is expected to grow by 14.2% per year over the next five years. It is trading at right around its growth rate, so it's not expensive, with a PEG ratio of 0.99.

The final piece in analyzing UNP is to take a look at its stock chart, and here I see a stock that continues to hit new highs!

Out of the almost 3,400 stocks that I track on a daily basis, UNP is ranked number 84 overall and it earns an overall grade of "A."

And you thought that the only good thing in Omaha was the wizard himself!

Data from Best Stocks Now App

At the time of publication, Gunderson was long UNP, although positions may change at any time.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

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