Union Story

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UNP -- USA Stock  

USD 205.96  2.71  1.30%

The predictive indicators we use to evaluate Union help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Union Pacific. We apply different methods to arrive at the intrinsic value of Union based on widely used predictive technical indicators. Today's article will recap Union Pacific. We will evaluate if Union Pacific shares are reasonably priced going into February.
Published over a month ago
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Is Union Pacific (NYSE:UNP) gaining more confidence from insiders?
The company's average rating is Buy from 20 analysts. 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. Earning per share calculations of Union Pacific is based on official Zacks consensus of 8 analysts regarding Union Pacific's future annual earnings. Given the historical accuracy of 97.03%, the future earnings per share of the company is estimated to be 8.0422 with the lowest and highest values of 7.85 and 8.15, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
The successful prediction of Union Pacific stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Union Pacific Corp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Union Pacific based on Union Pacific hews, social hype, general headline patterns, and widely used predictive technical indicators.
We also calculate exposure to Union Pacific's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Union Pacific's related companies.

Use Technical Analysis to project Union expected Price

Union Pacific technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Union Pacific technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Union Pacific trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Union Pacific, but it might be worth checking our own buy vs. sell analysis

Breaking it down a bit more

The recent bullish price patterns experienced by current Union Pacific shareholders created some momentum for insiders as it was traded today as low as 215.71 and as high as 218.46 per share. The company directors and management have been very successful in rebalancing the company assets at opportune times to take advantage of market volatility in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.46. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.
 2020 2021 (projected)
Share Based Compensation31.5 M31.32 M
Net Cash Flow from Operations7.75 B7.01 B

Cost of Revenue Breakdown

Union Pacific Cost of Revenue yearly trend continues to be very stable with very little volatility. Cost of Revenue is likely to grow to about 4.8 B this year. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Union Pacific Cost of Revenue is very stable at the moment as compared to the past year. Union Pacific reported last year Cost of Revenue of 4.4 Billion
2011
2012
2013
2014
2015
2016
2020
2021
20116.75 Billion
20126.95 Billion
20137.08 Billion
20147.33 Billion
20155.66 Billion
20164.88 Billion
20204.4 Billion
20214.76 Billion

Some Union technical indicators suggest reversion

The semi deviation is down to 1.85 as of today. Union Pacific has relatively low volatility with skewness of -0.72 and kurtosis of 2.23. However, we advise all investors to independently investigate Union Pacific to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Takeaway on Union Pacific Investment

Although some other firms under the railroads industry are still a bit expensive, Union Pacific may offer a potential longer-term growth to insiders. The inconsistency in the assessment between current Union valuation and our trade advice on Union Pacific is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Union Pacific.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Union Pacific Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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