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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Union Pacific ( UNP) pushed the Transportation industry higher today making it today's featured transportation winner. The industry as a whole closed the day up 1.1%. By the end of trading, Union Pacific rose $2.53 (1.6%) to $163.56 on average volume. Throughout the day, 2,309,838 shares of Union Pacific exchanged hands as compared to its average daily volume of 2,208,900 shares. The stock ranged in a price between $160.04-$163.63 after having opened the day at $161.60 as compared to the previous trading day's close of $161.03. Other companies within the Transportation industry that increased today were: ModusLink Global Solutions ( MLNK), up 13.0%, Sino-Global Shipping America ( SINO), up 9.3%, Genco Shipping & Trading ( GNK), up 8.7% and Danaos Corporation ( DAC), up 7.6%.

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Union Pacific has a market cap of $74.5 billion and is part of the services sector. The company has a P/E ratio of 17.8, above the S&P 500 P/E ratio of 17.7. Shares are up 28.1% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate Union Pacific a buy, no analysts rate it a sell, and 7 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, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, FreeSeas ( FREE), down 5.7%, Costamare ( CMRE), down 4.5%, Global Ship Lease ( GSL), down 4.0% and Teekay Tankers ( TNK), down 3.4%.

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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