Union Story

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UNP -- USA Stock  

USD 209.71  8.63  4.29%

Union Pacific is scheduled to announce its earnings today. The next earnings report is expected on the 22nd of April 2021. While many traders are getting carried away by overanalyzing industrials space, it is reasonable to recap Union Pacific under the recent economic conditions. What exactly are Union Pacific shareholders getting in February?
Published over a month ago
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Should you continue to hold Union Pacific (NYSE:UNP) based on the recent analyst consensus?
The company has 29.66 B in debt with debt to equity (D/E) ratio of 1.72, which is OK given its current industry classification.
What is the right price you would pay to acquire a share of Union Pacific? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated.
Please read more on our stock advisor page.

What is happening with Union Pacific Corp this year

Annual and quarterly reports issued by Union Pacific Corp are formal financial statements that are published yearly and quarterly and sent to Union stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Union Pacific often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Union utilizes its cash?

To perform a cash flow analysis of Union Pacific, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Union Pacific is receiving and how much cash it distributes out in a given period. The Union Pacific cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Union Pacific Net Cash Flow from Operations is very stable at the moment as compared to the past year. Union Pacific reported last year Net Cash Flow from Operations of 8.54 Billion

Breaking it down a bit more

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.

Is Union a risky opportunity?

Let's check the volatility. Union is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Union (NYSE:UNP) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. obtaining a share of an Union Pacific stock makes you a part-owner of that company.

Union Pacific Current Consensus

Here is the recent trade recommendation based on an ongoing consensus estimate among financial analysis covering Union Pacific. The Union consensus assessment is calculated by taking the average estimates from all of the analysts covering Union Pacific

Strong Buy
14
Hold
5
Strong Buy1470.0
Buy15.0
Hold525.0
Sell00.0
Strong Sell00.0

Anything left for Union Pacific after the decline?

The variance is down to 2.91 as of today. As of the 21st of January, Union Pacific has the Risk Adjusted Performance of 0.057, coefficient of variation of 1894.69, and Semi Deviation of 1.85. 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. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate nineteen technical drivers for Union Pacific, which can be compared to its competition. Please validate Union Pacific coefficient of variation, maximum drawdown, as well as the relationship between the Maximum Drawdown and skewness to decide if Union Pacific is priced more or less accurately, providing market reflects its prevalent price of 207.9 per share. Given that Union Pacific has jensen alpha of (0.05), we advise you to double-check Union Pacific's current market performance to make sure the company can sustain itself at a future point.

Our Conclusion on Union Pacific

Although some companies under the railroads industry are still a bit expensive, Union Pacific may offer a potential longer-term growth to insiders. In closing, as of the 21st of January 2021, our analysis shows that Union Pacific almost mirrors the market. The firm is fairly valued and projects below average probability of financial unrest for the next 2 years. Our ongoing 30 days 'Buy-Sell' recommendation on the firm is Buy.

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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