New Lifetime High Reached: Union Pacific (UNP)

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.

Trade-Ideas LLC identified Union Pacific ( UNP) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Union Pacific as such a stock due to the following factors:

  • UNP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $381.4 million.
  • UNP has traded 2,497 shares today.
  • UNP is trading at a new lifetime high.

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More details on UNP:

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in the United States. The stock currently has a dividend yield of 1.9%. UNP has a PE ratio of 19.6. Currently there are 14 analysts that rate Union Pacific a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Union Pacific has been 2.0 million shares per day over the past 30 days. Union Pacific has a market cap of $86.6 billion and is part of the services sector and transportation industry. The stock has a beta of 1.00 and a short float of 0.8% with 1.94 days to cover. Shares are up 16.2% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant 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, revenue growth, 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.

Highlights from the ratings report include:
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • UNION PACIFIC CORP has improved earnings per share by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, UNION PACIFIC CORP increased its bottom line by earning $9.43 versus $8.27 in the prior year. This year, the market expects an improvement in earnings ($10.90 versus $9.43).
  • Despite its growing revenue, the company underperformed as compared with the industry average of 8.4%. Since the same quarter one year prior, revenues slightly increased by 6.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Road & Rail industry and the overall market, UNION PACIFIC CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • 41.11% is the gross profit margin for UNION PACIFIC CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.29% is above that of the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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