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.

Trade-Ideas LLC identified Union Pacific ( UNP) as a pre-market laggard 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 $606.8 million.
  • UNP traded 19,918 shares today in the pre-market hours as of 8:38 AM.
  • UNP is down 3.8% today from yesterday's close.

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More details on UNP:

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates railroads in the United States. The stock currently has a dividend yield of 2%. UNP has a PE ratio of 19.2. Currently there are 14 analysts that rate Union Pacific a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Union Pacific has been 4.3 million shares per day over the past 30 days. Union Pacific has a market cap of $97.1 billion and is part of the services sector and transportation industry. The stock has a beta of 0.52 and a short float of 0.6% with 1.00 days to cover. Shares are down 8.1% year-to-date as of the close of trading on Tuesday.

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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, impressive record of earnings per share growth, compelling growth in net income, revenue growth and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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 26.3% 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 $5.76 versus $4.72 in the prior year. This year, the market expects an improvement in earnings ($6.48 versus $5.76).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Road & Rail industry average. The net income increased by 21.9% when compared to the same quarter one year prior, going from $1,174.00 million to $1,431.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.6%. Since the same quarter one year prior, revenues slightly increased by 9.3%. 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. When compared to other companies in the Road & Rail industry and the overall market, UNION PACIFIC CORP's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.

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