Is Union Pacific Stock a Good Investment?

Union Pacific Investment Advice

  UNP
To provide specific investment advice or recommendations on Union Pacific stock, we recommend investors consider the following general factors when evaluating Union Pacific. This will help you to make an informed decision on whether to include Union Pacific in one of your diversified portfolios:
  • Examine Union Pacific's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Union Pacific's leadership team and their track record. Good management can help Union Pacific navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Ground Transportation space and any emerging trends that could impact Union Pacific's business and its evolving consumer preferences.
  • Compare Union Pacific's performance and market position to its competitors. Analyze how Union Pacific is positioned in terms of product offerings, innovation, and market share.
  • Check if Union Pacific pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Union Pacific's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Union Pacific stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Union Pacific is a good investment.
 
Sell
 
Buy
Buy
Macroaxis provides recommendation on Union Pacific to complement and cross-verify current analyst consensus on Union Pacific. Our trade recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Union Pacific is not overpriced, please validate all Union Pacific fundamentals, including its price to sales, short ratio, annual yield, as well as the relationship between the cash per share and market capitalization . Given that Union Pacific has a price to earning of 19.05 X, we advise you to double-check Union Pacific market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your current risk tolerance and investing horizon.

Market Performance

InsignificantDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Union Pacific Stock

Researching Union Pacific's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 82.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.45. Union Pacific recorded earning per share (EPS) of 11.09. The entity last dividend was issued on the 28th of February 2025. The firm had 2:1 split on the 9th of June 2014.
To determine if Union Pacific is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Union Pacific's research are outlined below:
Union Pacific has 32.12 B in debt with debt to equity (D/E) ratio of 2.98, meaning that the company heavily relies on borrowing funds for operations. Union Pacific has a current ratio of 0.75, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Note however, debt could still be an excellent tool for Union to invest in growth at high rates of return.
Over 82.0% of Union Pacific outstanding shares are owned by institutional investors
Latest headline from kalkinemedia.com: Is Union Pacifics Rail Network Facing Challenges

Union Pacific Quarterly Gross Profit

2.81 Billion

Union Pacific uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Union Pacific. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Union Pacific's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
18th of April 2024
Upcoming Quarterly Report
View
24th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
23rd of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Union Pacific's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Union Pacific's investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
1998-10-22
1998-09-300.030.040.0133 
1999-10-21
1999-09-300.20.220.0210 
1999-07-22
1999-06-300.180.20.0211 
1999-01-21
1998-12-310.080.10.0225 
1998-04-23
1998-03-31-0.06-0.040.0233 
2006-01-19
2005-12-310.250.280.0312 
2005-07-21
2005-06-300.190.220.0315 
2002-01-24
2001-12-310.240.270.0312 

Union Pacific Target Price Consensus

Union target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Union Pacific's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
   30  Buy
Most Union analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Union stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Union Pacific, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice   Exposure   Valuation

Union Pacific Target Price Projection

Union Pacific's current and average target prices are 233.88 and 257.76, respectively. The current price of Union Pacific is the price at which Union Pacific is currently trading. On the other hand, Union Pacific's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.

Current Price

Union Pacific Market Quote on 22nd of March 2025

Low Price231.34Odds
High Price234.24Odds

233.88

Target Price

Analyst Consensus On Union Pacific Target Price

Low Estimate234.56Odds
High Estimate286.11Odds

257.7575

Historical Lowest Forecast  234.56 Target Price  257.76 Highest Forecast  286.11
Note that most analysts generally publish their price targets in research reports on specific companies, along with recommendations for the company's stock.Although price targets are often quoted in the financial news media, there could be a delay between the publication of the latest analyst outlook on Union Pacific and the information provided on this page.

Union Pacific Analyst Ratings

Union Pacific's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Union Pacific stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Union Pacific's financials, market performance, and future outlook by experienced professionals. Union Pacific's historical ratings below, therefore, can serve as a valuable tool for investors.

Know Union Pacific's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Union Pacific is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Union Pacific backward and forwards among themselves. Union Pacific's institutional investor refers to the entity that pools money to purchase Union Pacific's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Ameriprise Financial Inc2024-12-31
7.9 M
Franklin Resources Inc2024-12-31
7.7 M
Northern Trust Corp2024-12-31
M
T. Rowe Price Associates, Inc.2024-12-31
6.6 M
Amvescap Plc.2024-12-31
6.4 M
Fisher Asset Management, Llc2024-12-31
6.3 M
Wellington Management Company Llp2024-12-31
5.8 M
Royal Bank Of Canada2024-12-31
M
Ubs Asset Mgmt Americas Inc2024-12-31
M
Vanguard Group Inc2024-12-31
59 M
Blackrock Inc2024-12-31
45 M
Note, although Union Pacific's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Union Pacific's market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 141.88 B.

Market Cap

98.09 Billion

Union Pacific's profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.10  0.11 
Return On Capital Employed 0.16  0.16 
Return On Assets 0.10  0.10 
Return On Equity 0.40  0.42 
The company has Net Profit Margin of 0.28 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.41 %, which entails that for every 100 dollars of revenue, it generated $0.41 of operating income.
Determining Union Pacific's profitability involves analyzing its financial statements and using various financial metrics to determine if Union Pacific is a good buy. For example, gross profit margin measures Union Pacific's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Union Pacific's profitability and make more informed investment decisions.

Evaluate Union Pacific's management efficiency

Union Pacific has Return on Asset of 0.0906 % which means that on every $100 spent on assets, it made $0.0906 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.426 %, implying that it generated $0.426 on every 100 dollars invested. Union Pacific's management efficiency ratios could be used to measure how well Union Pacific manages its routine affairs as well as how well it operates its assets and liabilities. As of 03/22/2025, Return On Tangible Assets is likely to grow to 0.11. Also, Return On Capital Employed is likely to grow to 0.16. As of 03/22/2025, Change To Liabilities is likely to grow to about 352.6 M, while Total Current Liabilities is likely to drop slightly above 3.4 B.
Last ReportedProjected for Next Year
Book Value Per Share 27.80  29.19 
Tangible Book Value Per Share 26.50  27.82 
Enterprise Value Over EBITDA 13.62  6.90 
Price Book Value Ratio 8.20  8.61 
Enterprise Value Multiple 13.62  6.90 
Price Fair Value 8.20  8.61 
Enterprise Value112.4 B118 B
Leadership effectiveness at Union Pacific is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Dividend Yield
0.0227
Forward Dividend Yield
0.0227
Forward Dividend Rate
5.36
Beta
1.052

Basic technical analysis of Union Stock

As of the 22nd of March, Union Pacific has the Risk Adjusted Performance of 0.0193, coefficient of variation of 5539.19, and Semi Deviation of 1.36. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Union Pacific, as well as the relationship between them.

Union Pacific's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Union Pacific insiders, such as employees or executives, is commonly permitted as long as it does not rely on Union Pacific's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Union Pacific insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Union Pacific's Outstanding Corporate Bonds

Union Pacific issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Union Pacific uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Union bonds can be classified according to their maturity, which is the date when Union Pacific has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Union Pacific's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Union Pacific's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Union Pacific's intraday indicators

Union Pacific intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Union Pacific stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Union Pacific Corporate Filings

F4
11th of March 2025
The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities
ViewVerify
8K
18th of February 2025
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
12th of February 2025
Other Reports
ViewVerify
10th of February 2025
Prospectus used primarily for registering securities for public sale.
ViewVerify
Union Pacific time-series forecasting models is one of many Union Pacific's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Union Pacific's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Union Stock media impact

Far too much social signal, news, headlines, and media speculation about Union Pacific that are available to investors today. That information is available publicly through Union media outlets and privately through word of mouth or via Union internal channels. However, regardless of the origin, that massive amount of Union data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Union Pacific news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Union Pacific relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Union Pacific's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Union Pacific alpha.

Union Pacific Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Union Pacific can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Union Pacific Historical Investor Sentiment

Investor biases related to Union Pacific's public news can be used to forecast risks associated with an investment in Union. The trend in average sentiment can be used to explain how an investor holding Union can time the market purely based on public headlines and social activities around Union Pacific. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Union Pacific's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Union Pacific and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Union Pacific news discussions. The higher the estimate score, the more favorable the investor's outlook on Union Pacific.

Union Pacific Maximum Pain Price Across June 20th 2025 Option Contracts

Union Pacific's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Union Pacific close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Union Pacific's options.

Union Pacific Corporate Directors

Andrew CardIndependent DirectorProfile
Deborah HopkinsIndependent DirectorProfile
Erroll DavisIndependent DirectorProfile
David DillonIndependent DirectorProfile

Additional Tools for Union Stock Analysis

When running Union Pacific's price analysis, check to measure Union Pacific's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Union Pacific is operating at the current time. Most of Union Pacific's value examination focuses on studying past and present price action to predict the probability of Union Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Union Pacific's price. Additionally, you may evaluate how the addition of Union Pacific to your portfolios can decrease your overall portfolio volatility.