Bollard Group LLC boosted its stake in shares of Union Pacific Corporation (NYSE:UNP – Free Report) by 12.6% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 26,079 shares of the railroad operator’s stock after purchasing an additional 2,927 shares during the period. Bollard Group LLC’s holdings in Union Pacific were worth $6,327,000 at the end of the most recent reporting period.
Other hedge funds have also bought and sold shares of the company. Tucker Asset Management LLC acquired a new stake in shares of Union Pacific during the fourth quarter worth $25,000. SWAN Capital LLC raised its stake in Union Pacific by 2,575.0% in the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator’s stock worth $25,000 after acquiring an additional 103 shares during the last quarter. Rachor Investment Advisory Services LLC acquired a new stake in Union Pacific during the 4th quarter worth about $25,000. High Point Wealth Management LLC acquired a new stake in Union Pacific during the 4th quarter worth about $26,000. Finally, Scarborough Advisors LLC purchased a new stake in Union Pacific during the 1st quarter valued at about $27,000. Institutional investors and hedge funds own 80.38% of the company’s stock.
Analyst Ratings Changes Several brokerages have recently issued reports on UNP. Citizens Jmp began coverage on Union Pacific in a research note on Wednesday, July 15th. They issued an “outperform” rating and a $350.00 price objective for the company. Wells Fargo & Company reiterated an “overweight” rating and issued a $335.00 target price (up from $315.00) on shares of Union Pacific in a research report on Friday. The Goldman Sachs Group set a $317.00 price target on shares of Union Pacific and gave the stock a “neutral” rating in a research report on Thursday. JPMorgan Chase & Co. lifted their price objective on shares of Union Pacific from $304.00 to $334.00 and gave the company a “neutral” rating in a research note on Friday. Finally, Raymond James Financial reaffirmed a “strong-buy” rating on shares of Union Pacific in a report on Monday, July 13th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $319.16.
Check Out Our Latest Report on Union Pacific
Insiders Place Their Bets In other Union Pacific news, EVP Eric J. Gehringer sold 2,991 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total transaction of $789,504.36. Following the transaction, the executive vice president owned 43,012 shares of the company’s stock, valued at approximately $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.22% of the stock is currently owned by company insiders.
Key Headlines Impacting Union Pacific Here are the key news stories impacting Union Pacific this week:
Positive Sentiment: Union Pacific reported better-than-expected Q2 results, with adjusted EPS of $3.41 and revenue of $6.86 billion, both ahead of Wall Street estimates, reinforcing confidence in operating momentum and pricing power. Positive Sentiment: Analysts turned more constructive after the earnings beat, with Citigroup, JPMorgan, Benchmark, and Bank of America all raising price targets, suggesting expectations for further upside in the stock. Positive Sentiment: Union Pacific and Canadian National reached a binding access agreement tied to the proposed Norfolk Southern merger, easing competition concerns and improving the odds of regulatory approval while also giving UNP better Chicago routing efficiency and expanded corridor access. Article Title Neutral Sentiment: The broader news flow also highlighted that the merger and access agreement may reshape North American rail traffic patterns, but the deal still depends on Surface Transportation Board approval and final closing. Neutral Sentiment: Several articles noted Union Pacific’s record freight revenue and improved efficiency, which supports the bullish case but is already partly reflected in the recent rally. Union Pacific Stock Performance NYSE:UNP opened at $307.54 on Friday. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.99 and a quick ratio of 0.73. The firm has a market capitalization of $182.59 billion, a price-to-earnings ratio of 24.90, a PEG ratio of 3.18 and a beta of 0.96. The company’s 50-day moving average is $275.12 and its two-hundred day moving average is $258.32. Union Pacific Corporation has a 1-year low of $210.84 and a 1-year high of $315.99.
Union Pacific (NYSE:UNP – Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share for the quarter, topping analysts’ consensus estimates of $3.26 by $0.15. The firm had revenue of $6.86 billion during the quarter, compared to analysts’ expectations of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The firm’s quarterly revenue was up 11.5% on a year-over-year basis. During the same quarter last year, the company posted $3.03 EPS. Analysts forecast that Union Pacific Corporation will post 12.64 EPS for the current year.
Union Pacific Dividend Announcement The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, May 29th were given a $1.38 dividend. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific’s dividend payout ratio (DPR) is 45.47%.
Union Pacific Company Profile (Free Report)
Union Pacific Corporation (NYSE: UNP) is one of the largest freight railroad companies in the United States. Its principal operating subsidiary, Union Pacific Railroad, has roots that trace back to the Pacific Railway Act of 1862 and the construction of the first transcontinental rail link completed in 1869. The company is headquartered in Omaha, Nebraska, and operates as a holding company for rail transportation and related services.
Union Pacific’s core business is the movement of freight by rail across an extensive rail network serving the western two‑thirds of the United States.
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Bank of Nova Scotia increased its stake in shares of Union Pacific Corporation (NYSE:UNP – Free Report) by 19.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 284,453 shares of the railroad operator’s stock after acquiring an additional 45,813 shares during the quarter. Bank of Nova Scotia’s holdings in Union Pacific were worth $69,014,000 at the end of the most recent quarter.
Several other large investors have also modified their holdings of UNP. Rachor Investment Advisory Services LLC purchased a new stake in Union Pacific in the 4th quarter valued at approximately $25,000. Tucker Asset Management LLC acquired a new stake in Union Pacific in the fourth quarter valued at $25,000. SWAN Capital LLC increased its position in shares of Union Pacific by 2,575.0% in the fourth quarter. SWAN Capital LLC now owns 107 shares of the railroad operator’s stock valued at $25,000 after buying an additional 103 shares in the last quarter. High Point Wealth Management LLC purchased a new position in shares of Union Pacific in the fourth quarter valued at $26,000. Finally, Cornerstone Financial Management LLC acquired a new position in shares of Union Pacific during the 4th quarter worth $27,000. 80.38% of the stock is owned by institutional investors and hedge funds.
Key Stories Impacting Union Pacific Here are the key news stories impacting Union Pacific this week:
Positive Sentiment: Union Pacific reported better-than-expected Q2 results, with adjusted EPS of $3.41 and revenue of $6.86 billion, both ahead of Wall Street estimates, reinforcing confidence in operating momentum and pricing power. Positive Sentiment: Analysts turned more constructive after the earnings beat, with Citigroup, JPMorgan, Benchmark, and Bank of America all raising price targets, suggesting expectations for further upside in the stock. Positive Sentiment: Union Pacific and Canadian National reached a binding access agreement tied to the proposed Norfolk Southern merger, easing competition concerns and improving the odds of regulatory approval while also giving UNP better Chicago routing efficiency and expanded corridor access. Article Title Neutral Sentiment: The broader news flow also highlighted that the merger and access agreement may reshape North American rail traffic patterns, but the deal still depends on Surface Transportation Board approval and final closing. Neutral Sentiment: Several articles noted Union Pacific’s record freight revenue and improved efficiency, which supports the bullish case but is already partly reflected in the recent rally. Union Pacific Stock Up 1.1% Union Pacific stock opened at $307.54 on Friday. The firm has a market cap of $182.59 billion, a price-to-earnings ratio of 24.90, a P/E/G ratio of 3.18 and a beta of 0.96. The firm has a fifty day moving average price of $275.12 and a two-hundred day moving average price of $258.32. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.99 and a quick ratio of 0.73. Union Pacific Corporation has a fifty-two week low of $210.84 and a fifty-two week high of $315.99.
Union Pacific (NYSE:UNP – Get Free Report) last announced its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.26 by $0.15. The business had revenue of $6.86 billion for the quarter, compared to the consensus estimate of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. Union Pacific’s quarterly revenue was up 11.5% on a year-over-year basis. During the same quarter last year, the company posted $3.03 earnings per share. As a group, analysts forecast that Union Pacific Corporation will post 12.64 earnings per share for the current year.
Union Pacific Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, May 29th were issued a $1.38 dividend. This represents a $5.52 annualized dividend and a yield of 1.8%. The ex-dividend date of this dividend was Friday, May 29th. Union Pacific’s payout ratio is 45.47%.
Insider Buying and Selling at Union Pacific In related news, EVP Eric J. Gehringer sold 2,991 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total value of $789,504.36. Following the sale, the executive vice president owned 43,012 shares of the company’s stock, valued at $11,353,447.52. The trade was a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.22% of the company’s stock.
Analyst Upgrades and Downgrades UNP has been the subject of a number of analyst reports. Citizens Jmp initiated coverage on Union Pacific in a report on Wednesday, July 15th. They issued an “outperform” rating and a $350.00 price target for the company. Susquehanna boosted their price objective on shares of Union Pacific from $305.00 to $333.00 and gave the stock a “positive” rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. boosted their price target on Union Pacific from $304.00 to $334.00 and gave the stock a “neutral” rating in a research report on Friday. Royal Bank Of Canada restated an “outperform” rating and set a $339.00 target price (up from $289.00) on shares of Union Pacific in a research note on Friday. Finally, Weiss Ratings lowered Union Pacific from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday, June 23rd. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, Union Pacific presently has an average rating of “Moderate Buy” and an average price target of $319.16.
Get Our Latest Report on Union Pacific
Union Pacific Profile (Free Report)
Union Pacific Corporation (NYSE: UNP) is one of the largest freight railroad companies in the United States. Its principal operating subsidiary, Union Pacific Railroad, has roots that trace back to the Pacific Railway Act of 1862 and the construction of the first transcontinental rail link completed in 1869. The company is headquartered in Omaha, Nebraska, and operates as a holding company for rail transportation and related services.
Union Pacific’s core business is the movement of freight by rail across an extensive rail network serving the western two‑thirds of the United States.
Featured Articles Five stocks we like better than Union Pacific AMD and Cerbras Create A New Blueprint For Hardware Intel Earnings Reveal Whether the Chip Selloff Created a Buy CrowdStrike’s Cerebras Deal Puts Its AI Security Strategy to the Test Plugging In: How Kinder Morgan Powers Up Profits Want to see what other hedge funds are holding UNP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Union Pacific Corporation (NYSE:UNP – Free Report).
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Union Pacific Corp. (NYSE:UNP) on Thursday reported better-than-expected second-quarter 2026 results.
Adjusted diluted EPS of $3.41 topped the $3.24 estimate, while operating revenue rose 12% to $6.864 billion, beating the $6.713 billion estimate.
Management said second-half demand is tracking above initial expectations, supported by industrial activity, grain, petrochemicals and domestic intermodal.
Union Pacific shares closed at $304.33 on Thursday.
These analysts made changes to their price targets on Union Pacific following earnings announcement.
Wells Fargo analyst Christian Wetherbee maintained the stock with an Overweight rating and raised the price target from $315 to $335. Benchmark analyst Nathan P. Martin maintained the stock with a Buy and raised the price target from $325 to $335. Considering buying UNP stock? Here’s what analysts think:
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Buffett Spent 60 Years Ignoring Tech and the Bill Is Coming DueUnion Pacific NYSE: UNP reported record second-quarter 2026 financial results, with executives citing volume growth, pricing gains and improved operating performance, while also raising the railroad’s full-year earnings outlook.
Chief Executive Officer Jim Vena said the company delivered “record financial results driven by strong execution and 2% volume growth.” Net income totaled $2 billion, and earnings per share were $3.36 on a reported basis. Adjusted for merger costs, EPS was $3.41.
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AI Broke the Trucks: 3 Transports to Buy After the AI Panic“There was a lot of in and outs as we compare our performance against last year,” Vena said, noting fuel was a major driver of both surcharge revenue and expense. Excluding those factors, he said Union Pacific saw “solid core improvement” in revenue and operating income.
Revenue Rises as Fuel Surcharges and Volume Lift Results Chief Financial Officer Jennifer Hamann said operating revenue rose 12% from a year earlier to $6.9 billion, while freight revenue also increased 12% to $6.5 billion. Fuel surcharge revenue contributed 750 basis points to freight revenue growth and increased by roughly $460 million, reflecting higher fuel prices and volume.
2026 Sector Playbook: 3 Sectors Trading Below Fair ValueVolume growth added 225 basis points to freight revenue, while core pricing and business mix contributed 175 basis points. Hamann said the company’s “quarterly pricing dollars continue to exceed inflation dollars” as Union Pacific competes for business at levels reflecting the value of its rail service.
Business mix was a slight headwind in the quarter, Hamann said, as stronger-than-expected domestic intermodal growth offset the mix benefit from lower international intermodal traffic.
Operating expenses rose 13% to $4.1 billion, primarily due to higher diesel fuel prices. Fuel expense increased 63%, driven by a 60% increase in the average fuel price and 2% higher gross ton miles. The company’s average price per gallon rose to $3.86 from $2.42 a year earlier, adding 120 basis points to the operating ratio.
Union Pacific’s operating ratio was 59.2% in the quarter. Hamann said cash from operations increased 21% to $5.5 billion, while free cash flow totaled $1.8 billion after network reinvestment and dividends. The company also paid down $1.5 billion of long-term debt in the first half, bringing adjusted debt-to-EBITDA to 2.5 times.
Company Raises 2026 EPS Outlook Union Pacific raised its 2026 outlook to reported EPS growth in the high single-digit range, up from its prior outlook for 6% year-to-date growth in line with January expectations. Hamann said the company expects continued operating ratio improvement despite pressure from fuel costs.
“Fuel prices remain volatile,” Hamann said, adding that recent purchases have been above $4 per gallon. In response to an analyst question, she said fuel would likely continue to pressure the operating ratio, but Union Pacific expects volume opportunities and productivity gains to help offset that headwind.
Vena said he would prefer lower fuel prices despite the revenue benefit from fuel surcharges, because sustained high fuel prices could affect customers and consumer demand. Hamann said the company has not yet seen that demand impact.
Bulk, Industrial and Premium Segments Show Mixed Trends Executive Vice President of Marketing and Sales Kenny Rocker said second-quarter freight revenue excluding fuel surcharge grew 4% to $5.5 billion, which he described as a record.
In the bulk segment, revenue rose 7% despite a 1% decline in volume. Grain and grain products posted double-digit volume growth, driven by export demand, facility expansions, renewable fuels and related feedstocks. Rocker said the category delivered record second-quarter volume and revenue. Coal volume was pressured by weaker natural gas prices, mild weather and customer downtime.
Industrial revenue increased 8% on 3% volume growth. Petrochemicals benefited from improved demand and new business, while metals and minerals volumes rose on higher domestic steel production and business development wins, offsetting weakness in export soda ash.
Premium revenue rose 21% on 4% volume growth and a 16% increase in average revenue per car. Domestic intermodal posted its fourth consecutive record quarter in both volume and revenue, with private asset, rail asset and parcel volumes all up double digits. Rocker said the business benefited from constrained truck capacity and share gains. International intermodal volume fell 14%, though the company saw improvement late in the quarter from stronger West Coast imports.
Looking ahead, Rocker said grain and grain products are positioned for further second-half growth, while coal is expected to remain challenging due to elevated inventories and lower natural gas prices. He also said domestic intermodal should continue to perform well, supported by over-the-road conversions and Union Pacific’s service product.
Operations Improve as Volume Grows Executive Vice President of Operations Eric Gehringer said Union Pacific delivered record second-quarter operating performance while handling 2% more volume. Employee and derailment rates improved compared with their respective three-year rolling averages.
Freight car velocity increased 5% to 231 miles per day, a second-quarter record. Train speed rose 3%, and terminal dwell improved 7% to 19.7 hours, matching the first-quarter record and marking the third straight quarter below 20 hours. Gehringer said both the intermodal and manifest service performance indexes finished at 95%.
The company also reported record workforce productivity, train length and fuel consumption performance. Locomotive productivity improved 1%, fuel consumption improved 1%, workforce productivity rose 5%, and train length increased 2% from a year earlier.
Gehringer said Union Pacific continues to make strategic capacity investments, including in the Houston Complex, Pacific Northwest siding extensions and Sunset Double Track projects.
Norfolk Southern Merger and CN Agreement Remain in Focus Vena also provided an update on Union Pacific’s proposed merger with Norfolk Southern. He said the Surface Transportation Board accepted the company’s application as complete on May 28 and that Union Pacific planned to submit supplemental information requested by the board on Monday.
Vena said Union Pacific has expanded its Committed Gateway Pricing and made other voluntary commitments intended to improve the competitive nature of the proposed merger. He also highlighted a newly announced merger settlement agreement with Canadian National.
Vena said the agreement with Canadian National addresses ownership and competitive issues involving the Kansas City terminal and Terminal Railroad Association of St. Louis, while also giving Canadian National access between east of St. Louis and Kansas City. He said the agreement would provide CN with a path to move traffic into Mexico and would give Union Pacific better east-to-west access through Chicago.
Vena argued the merger would create seamless single-line service, improve reliability, lower costs and make rail more competitive against trucks and other railroads. “Now versus almost one year ago when we first announced our plans to merge, we have even more conviction that our transaction is in the public interest,” he said.
About Union Pacific (NYSE:UNP)Union Pacific Corporation NYSE: UNP is one of the largest freight railroad companies in the United States. Its principal operating subsidiary, Union Pacific Railroad, has roots that trace back to the Pacific Railway Act of 1862 and the construction of the first transcontinental rail link completed in 1869. The company is headquartered in Omaha, Nebraska, and operates as a holding company for rail transportation and related services.
Union Pacific's core business is the movement of freight by rail across an extensive rail network serving the western two‑thirds of the United States.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Union Pacific Corporation (UNP) Q2 2026 Earnings Call July 23, 2026 8:45 AM EDT
Company Participants
Vincenzo Vena - CEO & Director
Eric Gehringer - Executive Vice President of Operations
Jennifer Hamann - Executive VP & CFO
Kenny Rocker - Executive Vice President of Marketing & Sales
Conference Call Participants
Ken Hoexter - BofA Securities, Research Division
Christian Wetherbee - Wells Fargo Securities, LLC, Research Division
Walter Spracklin - RBC Capital Markets, Research Division
Jonathan Chappell - Evercore ISI Institutional Equities, Research Division
David Vernon - Bernstein Institutional Services LLC, Research Division
Stephanie Benjamin Moore - Jefferies LLC, Research Division
Thomas Wadewitz - UBS Investment Bank, Research Division
Brian Ossenbeck - JPMorgan Chase & Co, Research Division
Jason Seidl - TD Cowen, Research Division
Ariel Rosa - Citigroup Inc., Research Division
Brandon Oglenski - Barclays Bank PLC, Research Division
Jordan Alliger - Goldman Sachs Group, Inc., Research Division
Bascome Majors - Stephens Inc., Research Division
Madison Pasterchick - Morgan Stanley, Research Division
Jeffrey Kauffman - Citizens Bank
Harrison Bauer - Susquehanna Financial Group, LLLP, Research Division
Richa Talwar - Deutsche Bank AG, Research Division
Presentation
Unknown Attendee
Thank you for accessing Union Pacific Corporation's 2026 Second Quarter Earnings Conference Call held at 8:45 a.m. Eastern Time on July 23, 2026, in Omaha, Nebraska.
This presentation and the accompanying materials include statements that contain estimates, projections or expectations regarding the company's financial results and operations and future economic conditions.
These statements are forward-looking statements as defined by the federal securities laws. Forward-looking statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. The materials accompanying this presentation include more detailed information regarding forward-looking information and these risks and uncertainties. In addition, please refer to the company's website and SEC filings for additional information about our risk factors.
Key Takeaways Union Pacific beat Q2 estimates as EPS rose 8.5% and revenue increased 11.5% year over year.UNP grew freight revenues 12%, led by pricing gains, higher fuel surcharge revenue and volume growth.UNP expects high-single digit EPS growth in 2026 with operating ratio improvement and $3.3B capex. Union Pacific Corporation (UNP - Free Report) reported impressive second-quarter 2026 results, wherein both the earnings and revenues beat the Zacks Consensus Estimate.
Quarterly earnings (excluding 5 cents from non-recurring items) of $3.41 per share beat the Zacks Consensus Estimate by 2.8% and increased 8.5% on a year-over-year basis.
Operating revenues of $6.86 billion beat the Zacks Consensus Estimate of $6.65 billion and rose 11.5% on a year-over-year basis, driven by core pricing gains, volume growth and higher fuel surcharge revenues, partially offset by business mix. Revenue carloads declined 1% year over year.
Freight revenues (accounting for 95% of the top line) increased 12% year over year to $6.52 billion. Other revenues increased 11% year over year to $346 million in the second quarter of 2026.
Operating income increased 9% year over year to $2.76 billion. Total operating expenses of $4.10 billion inched up 13% year over year. Fuel expenses rose 63% year over year. Expenses on purchased services and materials increased 10% on a year-over-year basis, while expenses on compensation and benefits decreased 1% year over year.
The operating ratio (operating expenses as a percentage of revenues) in the second quarter of 2026, on an adjusted basis, improved 110 basis points year over year to 59.2%.
UNP’s Segmental HighlightsBulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $2.04 billion, which increased 7% on a year-over-year basis. Segmental revenue carloads decreased 1% year over year to $514 million.
Industrial freight revenues totaled $2.39 billion, up 8% year over year. Segmental revenue carloads increased 3% year over year to $586 million.
Freight revenues in the premium division were $2.08 billion, up 21% year over year. Premium revenue carloads increased 4% year over year to $1.06 billion.
UNP’s LiquidityUnion Pacific exited the second quarter of 2026 with cash and cash equivalents of $1.16 billion compared with $1.27 billion at the quarter's end of 2026. Debt (due after a year) of $29.04 billion was down 4.14% compared with the December-quarter end of 2026 actuals.
UNP’s 2026 OutlookFor 2026, earnings per share are expected to register high-single digit growth, consistent with attaining the three-year CAGR target of high-single digit to low-double digit growth through 2027.
UNP further anticipates operating ratio improvement. Capital expenditure is expected to be approximately $3.3 billion. UNP aims to continue generating strong cash while increasing annual dividend payouts.
Currently, UNP carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation CompaniesWestinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.
Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.
Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.
Union Pacific (UNP - Free Report) came out with quarterly earnings of $3.41 per share, beating the Zacks Consensus Estimate of $3.2 per share. This compares to earnings of $3.03 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +6.56%. A quarter ago, it was expected that this railroad would post earnings of $2.85 per share when it actually produced earnings of $2.93, delivering a surprise of +2.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Union Pacific, which belongs to the Zacks Transportation - Rail industry, posted revenues of $6.86 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.18%. This compares to year-ago revenues of $6.15 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Union Pacific shares have added about 26.5% since the beginning of the year versus the S&P 500's gain of 9.6%.
What's Next for Union Pacific?While Union Pacific has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Union Pacific was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.32 on $6.73 billion in revenues for the coming quarter and $12.62 on $26.04 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Canadian National (CNI - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 24.
This railroad is expected to post quarterly earnings of $1.39 per share in its upcoming report, which represents a year-over-year change of +3%. The consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level.
Canadian National's revenues are expected to be $3.26 billion, up 5.5% from the year-ago quarter.
Union Pacific (UNP - Free Report) reported $6.86 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 11.5%. EPS of $3.41 for the same period compares to $3.03 a year ago.
The reported revenue represents a surprise of +3.18% over the Zacks Consensus Estimate of $6.65 billion. With the consensus EPS estimate being $3.20, the EPS surprise was +6.56%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Union Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Ratio: 59.7% versus the three-analyst average estimate of 59.4%.Revenue Ton-Miles: 109.95 billion versus 110.05 billion estimated by two analysts on average.Revenue Carloads - Total: 2.16 million compared to the 2.16 million average estimate based on two analysts.Revenue Carloads - Industrial Products: 586 thousand compared to the 588.92 thousand average estimate based on two analysts.Average revenue per car: $3,014.00 versus $2,967.10 estimated by two analysts on average.Average revenue per car - Industrial Products: $4,075.00 versus the two-analyst average estimate of $4,135.32.Revenue Carloads - Premium: 1.06 million compared to the 1.06 million average estimate based on two analysts.Freight Revenues- Premium: $2.09 billion versus $1.95 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +20.8% change.Freight Revenues- Bulk: $2.04 billion compared to the $2.04 billion average estimate based on two analysts. The reported number represents a change of +7.5% year over year.Operating Revenues- Other revenues: $346 million versus $306.03 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.3% change.Freight Revenues- Industrial Products: $2.39 billion versus the two-analyst average estimate of $2.44 billion. The reported number represents a year-over-year change of +7.9%.Operating Revenues- Freight revenues: $6.52 billion versus the two-analyst average estimate of $6.42 billion. The reported number represents a year-over-year change of +11.6%.View all Key Company Metrics for Union Pacific here>>>
Shares of Union Pacific have returned +12.5% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
OMAHA, Neb.--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) today reported second quarter 2026 net income of $2.0 billion, up 6%, and diluted EPS of $3.36, up 7%, compared to reported second quarter 2025 net income of $1.9 billion and diluted EPS of $3.15. Adjusted second quarter 2026 net income* of $2.0 billion increased 12%, and adjusted diluted EPS* of $3.41 increased 13%, compared to adjusted second quarter 2025 net income* of $1.8 billion and adjusted diluted EPS* of $3.03. "Strong.
Union Pacific Corp (UNP) released its 8-K filing detailing the company's financial performance for the second quarter of 2026, which showed favorable results co
Analysts on Wall Street project that Union Pacific (UNP - Free Report) will announce quarterly earnings of $3.20 per share in its forthcoming report, representing an increase of 5.6% year over year. Revenues are projected to reach $6.65 billion, increasing 8.1% from the same quarter last year.
The consensus EPS estimate for the quarter has undergone an upward revision of 1.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
With that in mind, let's delve into the average projections of some Union Pacific metrics that are commonly tracked and projected by analysts on Wall Street.
According to the collective judgment of analysts, 'Freight Revenues- Premium' should come in at $1.95 billion. The estimate suggests a change of +12.7% year over year.
Analysts forecast 'Freight Revenues- Bulk' to reach $2.04 billion. The estimate indicates a year-over-year change of +7.1%.
The average prediction of analysts places 'Operating Revenues- Other revenues' at $306.03 million. The estimate suggests a change of -1.6% year over year.
The combined assessment of analysts suggests that 'Freight Revenues- Industrial Products' will likely reach $2.44 billion. The estimate indicates a year-over-year change of +10.1%.
The consensus estimate for 'Operating Ratio' stands at 59.4%. Compared to the present estimate, the company reported 59.0% in the same quarter last year.
Based on the collective assessment of analysts, 'Revenue Ton-Miles' should arrive at 110.05 billion. Compared to the present estimate, the company reported 107.55 billion in the same quarter last year.
Analysts predict that the 'Revenue Carloads - Total' will reach 2.16 million. Compared to the current estimate, the company reported 2.11 million in the same quarter of the previous year.
Analysts' assessment points toward 'Revenue Carloads - Industrial Products' reaching 588.92 thousand. The estimate is in contrast to the year-ago figure of 569.00 thousand.
Analysts expect 'Average revenue per car' to come in at $2967.10 . Compared to the present estimate, the company reported $2764.00 in the same quarter last year.
It is projected by analysts that the 'Average revenue per car - Industrial Products' will reach $4135.32 . Compared to the current estimate, the company reported $3885.00 in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Revenue Carloads - Premium' of 1.06 million. The estimate is in contrast to the year-ago figure of 1.03 million.
The consensus among analysts is that 'Average revenue per car - Premium' will reach $1830.35 . Compared to the present estimate, the company reported $1688.00 in the same quarter last year.
View all Key Company Metrics for Union Pacific here>>>
Over the past month, Union Pacific shares have recorded returns of +17.5% versus the Zacks S&P 500 composite's +0.6% change. Based on its Zacks Rank #3 (Hold), UNP will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Allspring Global Investments Holdings LLC lifted its stake in shares of Union Pacific Corporation (NYSE:UNP – Free Report) by 10.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 396,610 shares of the railroad operator’s stock after purchasing an additional 38,782 shares during the quarter. Allspring Global Investments Holdings LLC owned about 0.07% of Union Pacific worth $96,424,000 at the end of the most recent quarter.
Several other hedge funds have also recently modified their holdings of the stock. Capital World Investors boosted its position in shares of Union Pacific by 92.1% during the 4th quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator’s stock worth $4,658,142,000 after purchasing an additional 9,655,306 shares in the last quarter. Norges Bank acquired a new position in shares of Union Pacific during the 4th quarter worth $1,779,907,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Union Pacific by 72.7% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,177,002 shares of the railroad operator’s stock valued at $2,169,168,000 after purchasing an additional 3,861,636 shares in the last quarter. Capital Research Global Investors lifted its stake in shares of Union Pacific by 26.0% in the fourth quarter. Capital Research Global Investors now owns 10,980,904 shares of the railroad operator’s stock valued at $2,540,105,000 after purchasing an additional 2,267,708 shares during the period. Finally, Baupost Group LLC MA acquired a new stake in shares of Union Pacific in the third quarter valued at about $353,658,000. 80.38% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets Several research analysts have weighed in on UNP shares. JPMorgan Chase & Co. upped their target price on shares of Union Pacific from $275.00 to $304.00 and gave the stock a “neutral” rating in a research report on Friday, July 10th. BMO Capital Markets reiterated a “market perform” rating and set a $285.00 price target (up from $278.00) on shares of Union Pacific in a research report on Friday, April 24th. UBS Group reissued a “neutral” rating and set a $274.00 price target (up from $253.00) on shares of Union Pacific in a research note on Friday, April 24th. Weiss Ratings cut Union Pacific from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, June 23rd. Finally, Sanford C. Bernstein raised their price objective on Union Pacific from $289.00 to $293.00 and gave the company an “outperform” rating in a research note on Tuesday, March 31st. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $299.11.
View Our Latest Research Report on UNP
Union Pacific Price Performance Shares of NYSE:UNP opened at $301.44 on Friday. The company has a market cap of $178.96 billion, a P/E ratio of 24.83, a P/E/G ratio of 3.13 and a beta of 0.96. The company has a quick ratio of 0.73, a current ratio of 0.92 and a debt-to-equity ratio of 1.53. Union Pacific Corporation has a 52 week low of $210.84 and a 52 week high of $303.15. The business has a fifty day simple moving average of $271.93 and a 200-day simple moving average of $256.00.
Union Pacific (NYSE:UNP – Get Free Report) last released its earnings results on Thursday, April 23rd. The railroad operator reported $2.93 earnings per share for the quarter, topping the consensus estimate of $2.86 by $0.07. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.The firm had revenue of $6.22 billion for the quarter, compared to the consensus estimate of $6.12 billion. During the same period in the prior year, the business posted $2.70 earnings per share. The firm’s revenue for the quarter was up 3.2% compared to the same quarter last year. Equities research analysts forecast that Union Pacific Corporation will post 12.62 EPS for the current year.
Union Pacific Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were issued a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Friday, May 29th. Union Pacific’s dividend payout ratio is presently 45.47%.
Key Stories Impacting Union Pacific Here are the key news stories impacting Union Pacific this week:
Positive Sentiment: Union Pacific received the first rail from Rocky Mountain Steel’s new $1.2 billion Pueblo mill, kicking off a seven-year domestic supply contract that could improve rail-input reliability and support efficiency. Article Title Positive Sentiment: Several analysts remain constructive, with recent price-target increases and buy/outperform-style ratings helping reinforce expectations for stronger earnings and continued momentum. Article Title Positive Sentiment: Heading into Q2 results, earnings estimates have been rising as stronger freight demand may offset volume and supply-chain pressures, which could set up a positive catalyst if Union Pacific beats expectations. Article Title Neutral Sentiment: A valuation article said Union Pacific looks fairly valued on cash flow, suggesting the shares may be closer to intrinsic value than deeply discounted, which is less of a near-term trading catalyst. Article Title Negative Sentiment: Dan Loeb’s Third Point cut its Union Pacific stake by more than 90% while also slashing other railroad holdings, a move that may pressure sentiment around the sector amid merger uncertainty. Article Title Insider Transactions at Union Pacific In other Union Pacific news, EVP Eric J. Gehringer sold 2,991 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total transaction of $789,504.36. Following the transaction, the executive vice president owned 43,012 shares of the company’s stock, valued at $11,353,447.52. This trade represents a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Kenyatta G. Rocker sold 27,387 shares of Union Pacific stock in a transaction on Friday, April 24th. The shares were sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the completion of the transaction, the executive vice president owned 61,102 shares in the company, valued at approximately $16,605,079.52. This trade represents a 30.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 32,378 shares of company stock worth $8,781,595 in the last three months. Company insiders own 0.22% of the company’s stock.
About Union Pacific (Free Report)
Union Pacific Corporation (NYSE: UNP) is one of the largest freight railroad companies in the United States. Its principal operating subsidiary, Union Pacific Railroad, has roots that trace back to the Pacific Railway Act of 1862 and the construction of the first transcontinental rail link completed in 1869. The company is headquartered in Omaha, Nebraska, and operates as a holding company for rail transportation and related services.
Union Pacific’s core business is the movement of freight by rail across an extensive rail network serving the western two‑thirds of the United States.
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Key Takeaways UNP's Q2 earnings are expected to rise 5.6%, while revenues are projected to grow 7.2%. Freight revenues are estimated to increase 10% to $6.42 billion on stronger service demand. Lower shipment volumes and supply-chain disruptions may pressure UNP's bottom line. Union Pacific Corporation (UNP - Free Report) is scheduled to report second-quarter 2026 results on July 23, before market open.
The Zacks Consensus Estimate for UNP’s second-quarter 2026 earnings has been revised upward by 1.9% over the past 60 days to $3.20 per share. The consensus mark for earnings implies a 5.6% rise from the year-ago actuals. The Zacks Consensus Estimate for UNP’s second-quarter 2026 revenues is pegged at $6.60 billion, indicating 7.2% growth year over year.
Union Pacific has an encouraging earnings surprise history. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once in the remaining, delivering an average beat of 2.3%.
Let’s see how things are likely to have shaped up for Union Pacific this earnings season.
Factors to Note Ahead of UNP’s Q2 Earnings ReleaseWe expect the company’s top-line performance in the to-be-reported quarter to have been boosted by an uptick in demand for services. The Zacks Consensus Estimate for freight revenues (which accounts for the majority portion of total revenues) is pegged at $6.42 billion, which indicates a 10% increase from second-quarter 2025 actuals.
The consensus mark for other revenues is pegged at $306.03 million, implying a 1.6% decrease from the second-quarter 2025 actuals.
On the contrary, persistent geopolitical tensions in the Middle East and ongoing supply-chain disruptions are also likely to have pressured the company's bottom line. The decline in shipment volumes are likely to have offset the benefits of pricing initiatives, hampering the company’s prospects in the June-end quarter of 2026.
What Our Model Says About UNPOur proven model predicts an earnings beat for Union Pacific this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
UNP has an Earnings ESP of +0.34% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of UNP’s Q1 ResultsUNP reported mixed first-quarter 2026 results, wherein the company’s earnings beat the Zacks Consensus Estimate but revenues missed the same.
Quarterly earnings (excluding 6 cents from non-recurring items) of $2.93 per share beat the Zacks Consensus Estimate by 2.8% and increased 8.5% on a year-over-year basis.
Operating revenues of $6.21 billion missed the Zacks Consensus Estimate of $6.22 billion but rose 3.15% on a year-over-year basis
Other Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
CSX Corporation (CSX - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank #2 at present. CSX is scheduled to report second-quarter 2026 results on July 22, after market close.
The Zacks Consensus Estimate for the second-quarter 2026 earnings has been revised upward by 6.38% over the past 60 days to 50 cents per share. The Zacks Consensus Estimate for revenues is pegged at $3.82 billion, indicating a 6.90% increase from the second-quarter 2025 actuals.
Schneider National (SNDR - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #2 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter 2026 earnings has been remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.
Storied railroad freight company Union Pacific (UNP +3.84%) had a fine Thursday on the stock market. Thanks in no small part to an analyst's price target increase, its shares thundered nearly 4% higher that trading session.
On the right track That morning, Bernstein SocGen prognosticator David Vernon made that change. He now believes Union Pacific stock is worth $346 per share; his previous level was $330. More importantly, he maintained his positive view on the stock by maintaining his outperform (i.e., buy) recommendation.
Image source: Getty Images.
A single analyst move doesn't necessarily push a stock higher or lower. What compounded this one is that it followed two other bullish analyst takes, both coming on Wednesday.
The first was from Nathan Martin of Benchmark, who upped his price target to $325 per share from $300, and kept his buy recommendation intact. The second was the initiation of coverage by Citizens JMP, which began covering transportation sector titles. The firm's Jeff Kauffman flagged Union Pacific as an outperform, with a relatively high price target of $350.
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Rolling with the recovery According to reports, Kauffman wrote that what he considers to be the early phase of an economic recovery in the U.S. will be a major catalyst for improvements in earnings for the transportation sector generally and Union Pacific specifically in the coming quarters.
While I don't believe we're in a serious slump, I'd agree that our economy is positioned for some improvement. So I'd buy this argument, which certainly supports the buy case for Union Pacific's equity.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.
PUEBLO, Colo.--(BUSINESS WIRE)--Rocky Mountain Steel Mills announced today that Union Pacific Railroad received the first stick of rail from Rocky Mountain Steel's new long rail mill at its Pueblo, Colorado facility, marking the official commencement of operations at the new, $1.2 billion facility. Union Pacific leadership, led by Chief Executive Officer Jim Vena, visited the Colorado mill for a tour and meeting with Rocky Mountain Steel Mills employees. In April, Union Pacific and Rocky Mounta.
Wall Street expects a year-over-year increase in earnings on higher revenues when Union Pacific (UNP - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 23, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis railroad is expected to post quarterly earnings of $3.20 per share in its upcoming report, which represents a year-over-year change of +5.6%.
Revenues are expected to be $6.6 billion, up 7.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.22% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Union Pacific?For Union Pacific, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.34%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Union Pacific will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Union Pacific would post earnings of $2.85 per share when it actually produced earnings of $2.93, delivering a surprise of +2.81%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Union Pacific appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Transportation - Rail industry, CSX (CSX - Free Report) , is soon expected to post earnings of $0.5 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +13.6%. This quarter's revenue is expected to be $3.82 billion, up 6.9% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for CSX has been revised 0.9% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.31%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that CSX will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Union Pacific (UNP - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Union Pacific currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if UNP is a promising momentum pick, let's examine some Momentum Style elements to see if this railroad holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For UNP, shares are up 1.67% over the past week while the Zacks Transportation - Rail industry is up 2% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 5.23% compares favorably with the industry's 4.32% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Union Pacific have risen 14.26%, and are up 22.06% in the last year. In comparison, the S&P 500 has only moved 11.35% and 21.86%, respectively.
Investors should also take note of UNP's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now UNP is averaging 2,391,458 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with UNP.
Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost UNP's consensus estimate, increasing from $12.54 to $12.56 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that UNP is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Union Pacific on your short list.
Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Union Pacific?The final step today is to look at a stock that meets our ESP qualifications. Union Pacific (UNP - Free Report) earns a #3 (Hold) 13 days from its next quarterly earnings release on July 23, 2026, and its Most Accurate Estimate comes in at $3.19 a share.
By taking the percentage difference between the $3.19 Most Accurate Estimate and the $3.15 Zacks Consensus Estimate, Union Pacific has an Earnings ESP of +1.35%. Investors should also know that UNP is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
UNP is just one of a large group of Transportation stocks with a positive ESP figure. Kirby (KEX - Free Report) is another qualifying stock you may want to consider.
Kirby is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on July 29, 2026. KEX's Most Accurate Estimate sits at $1.74 a share 19 days from its next earnings release.
The Zacks Consensus Estimate for Kirby is $1.70, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.66%.
UNP and KEX's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Union Pacific Corporation is rated hold, reflecting limited near-term upside despite strong historical returns and positive EPS revisions. UNP's proposed $85B merger with Norfolk Southern could create significant value, but regulatory hurdles and industry consolidation concerns remain. Recent operational results show modest revenue growth, robust margin drop-through, and continued dividend increases, but buybacks have paused ahead of the merger.
Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) today submitted the first portion of their responses to the Surface Transpor
WICHITA, Kan.--(BUSINESS WIRE)--A Kansas federal court has granted class action status to a group of Wichita residents alleging that Union Pacific Corp. historically released hazardous waste from a rail yard site that contaminated the soil and groundwater of thousands of surrounding properties, according to attorneys at The Lanier Law Firm. Testing shows the contaminants include chlorinated solvents and other chemicals with known links to cancer that have migrated from the property at 29th Stre.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Delta Air Lines?The final step today is to look at a stock that meets our ESP qualifications. Delta Air Lines (DAL - Free Report) earns a #3 (Hold) eight days from its next quarterly earnings release on July 10, 2026, and its Most Accurate Estimate comes in at $1.45 a share.
By taking the percentage difference between the $1.45 Most Accurate Estimate and the $1.44 Zacks Consensus Estimate, Delta Air Lines has an Earnings ESP of +0.56%. Investors should also know that DAL is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
DAL is part of a big group of Transportation stocks that boast a positive ESP, and investors may want to take a look at Union Pacific (UNP - Free Report) as well.
Union Pacific is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on July 23, 2026. UNP's Most Accurate Estimate sits at $3.21 a share 21 days from its next earnings release.
For Union Pacific, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $3.14 is +2.09%.
DAL and UNP's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Union Pacific (UNP - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for Union Pacific basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Union Pacific imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Union PacificThis railroad is expected to earn $12.55 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Union Pacific. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Union Pacific to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Union Pacific (UNP - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.
Union Pacific is one of 99 individual stocks in the Transportation sector. Collectively, these companies sit at #3 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Union Pacific is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for UNP's full-year earnings has moved 0.7% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, UNP has moved about 17.9% on a year-to-date basis. At the same time, Transportation stocks have gained an average of 15.9%. This means that Union Pacific is performing better than its sector in terms of year-to-date returns.
Another Transportation stock, which has outperformed the sector so far this year, is XPO (XPO - Free Report) . The stock has returned 51.7% year-to-date.
The consensus estimate for XPO's current year EPS has increased 8.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Union Pacific belongs to the Transportation - Rail industry, a group that includes 9 individual stocks and currently sits at #62 in the Zacks Industry Rank. On average, stocks in this group have gained 19.8% this year, meaning that UNP is slightly underperforming its industry in terms of year-to-date returns.
On the other hand, XPO belongs to the Transportation - Truck industry. This 12-stock industry is currently ranked #43. The industry has moved +44.7% year to date.
Investors interested in the Transportation sector may want to keep a close eye on Union Pacific and XPO as they attempt to continue their solid performance.
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Omaha, Union Pacific (UNP - Free Report) is a Transportation stock that has seen a price change of 16.01% so far this year. The railroad is currently shelling out a dividend of $1.38 per share, with a dividend yield of 2.06%. This compares to the Transportation - Rail industry's yield of 0.78% and the S&P 500's yield of 1.41%.
Looking at dividend growth, the company's current annualized dividend of $5.52 is up 1.5% from last year. Over the last 5 years, Union Pacific has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Union Pacific's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
UNP is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $12.55 per share, with earnings expected to increase 7.63% from the year ago period.
From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, UNP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Pedestrians approach a Union Pacific freight train traveling past Jack London Square, Oakland, California, April 26, 2026. (Photo by Smith Collection/Gado/Getty Images)
Gado via Getty Images
The proposed merger of Union Pacific and Norfolk Southern is about life and death. Yes, you read that right. Which requires a brief digression.
Specifically, to Hillary Clinton versus Donald Trump in 2016. Remember when partisans of both claimed the election would decide whether the U.S. went the way of Venezuela, or not?
Life or death in politics is generally a fraud, though it’s a device used by politicians and partisans alike. Elect me or my candidate to “save” the people from all manner of horrors. It’s nonsense, and it should be treated as such.
Still, with transportation it’s not partisan or emotional to say that trucks on U.S. roads bring with them a body count. Over 5,000 deaths, most of them for innocents not driving trucks, in 2023 alone.
Please keep the trucking-related deaths top of mind while reading about the ongoing, Washington-driven delays of the proposed Union Pacific merger with Norfolk Southern. Yes, there’s a death count associated with the shipment of market goods by trucks that the merger addresses. That’s because the annual body count associated with rail shipment is near non-existent.
None of which is an unwarranted attack on trucking as a mode of shipment. The latter is essential as evidenced by the fact that over three quarters of market good shipments in the U.S. are handled by trucks.
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Just the same, and in the dominance of trucking as a mode of shipment, it’s easy to see that the would-be combination of Union Pacific and Norfolk Southern in no way creates what’s impossible to create in a free market: a national rail monopoly. And it certainly wouldn’t create a shipping monopoly. See the previously mentioned dominance of trucking.
What the merger would create is crucial information. Specifically, how much healthier and competitive rail networks would be if they could combine their efforts and resources on the path to more seamless national, and eventually international rail networks. Knowledge like this is particularly pressing right now.
To see why, readers need only contemplate the growth of wealth around the United States at all income levels. As Peggy Noonan observed in a recent column, sometimes we need to see what we’ve grown used to seeing through the eyes of others.
Noonan was alluding to the awestruck reactions of visitors to North America, and the U.S. specifically, for the World Cup. The consensus has been that they’re very taken by just how enormously well Americans live.
How this applies to goods shipment is that as wealth grows, so will grow the movement of goods around the United States. Yes, consumption mirrors production and production stateside will continue to soar. Which means advances in goods shipment must be achieved sooner rather than later not to bring harm to the trucking industry, but to avoid the necessity of not just more trucks on roads populated with passenger vehicles, but much bigger ones.
The proposed combination of Union Pacific and Norfolk Southern is ultimately an endeavor meant to discover whether rail, through fixed intercontinental routes, can shoulder what will be growing amounts of shipment throughout the United States and beyond. The answer to the latter must be discovered simply because if railroads aren’t the answer, others must be found.
As you read this, there’s a movement afoot in Washington to bring bigger, heavier, and longer trucks to America’s highways. To say that the delay of Union Pacific/Norfolk Southern is associated with these political machinations is hardly an insight. Which is tragic, along with a reminder that politics in Washington sometimes has a body count.
OMAHA, Neb.--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) will release second quarter 2026 financial and operating results on Thursday, July 23, 2026, at 7:45 a.m. ET. The company's management team will host a conference call and live webcast at 8:45 a.m. ET. Parties interested in participating via teleconference may dial 877-407-8293. International callers may dial 201-689-8349. A live webcast of the presentation and materials will be available in the investor relations section of Un.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of UNP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Union Pacific?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Union Pacific (UNP - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $3.15 a share 30 days away from its upcoming earnings release on July 23, 2026.
By taking the percentage difference between the $3.15 Most Accurate Estimate and the $3.14 Zacks Consensus Estimate, Union Pacific has an Earnings ESP of +0.29%. Investors should also know that UNP is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Omaha, Union Pacific (UNP - Free Report) is a Transportation stock that has seen a price change of 14.94% so far this year. The railroad is currently shelling out a dividend of $1.38 per share, with a dividend yield of 2.08%. This compares to the Transportation - Rail industry's yield of 0.77% and the S&P 500's yield of 1.42%.
Looking at dividend growth, the company's current annualized dividend of $5.52 is up 1.5% from last year. Over the last 5 years, Union Pacific has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Union Pacific's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UNP expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $12.54 per share, representing a year-over-year earnings growth rate of 7.55%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors have to be mindful of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UNP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Class I railroads Union Pacific (UNP +1.65%) and CSX (CSX +0.43%) are two prominent companies that transport bulk goods and commodities across the continent on tens of thousands of miles of track.
Railroads are classic industrial stocks, but still a fantastic business to invest in today. The incumbent railroad companies dominate North America, and, combined with regulatory hurdles, make it almost impossible for new entrants to enter the fray. That drives pricing power and strong investment returns. Union Pacific has returned 308% over the past decade, slightly outpacing the S&P 500 index's 326%. Meanwhile, CSX has been a home run, returning over 519%.
But which is the better railroad to own in 2026? There's a ton to like about Union Pacific, but much of that depends on a blockbuster acquisition. That's why CSX remains the better railroad stock in 2026. Here is what you need to know.
Image source: Getty Images.
CSX's operational improvement is the 2026 headline CSX operates approximately 20,000 miles of rail and provides rail and intermodal transport services throughout the eastern and southeastern United States and the Canadian provinces of Ontario and Quebec. CSX appointed Steve Angel as CEO in September 2025. He was the former CEO of Linde, an industrial gases giant where operational efficiency is paramount to success. That influence has shown up pretty quickly. CSX's operating margin rose by 560 basis points year over year in the first quarter of 2026, driven largely by a 6% reduction in operating expenses.
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The company also recently completed its project at the Howard Street Tunnel in Baltimore, which will boost intermodal volumes. Intermodal volumes rose 6% in the first quarter. The market has rewarded the stock with a forward P/E ratio of 24. It's not a very low valuation, certainly not a bargain. That said, it seems fair given analysts' expectation of approximately 10% annualized earnings growth over the next three to five years. It makes CSX a safe, steady investment.
Union Pacific's pending merger could transform the company Union Pacific is larger, with about 32,000 miles of railroad track, but operates in the western and central United States, touching parts of Mexico. It's the only railroad with access to all six gateways between the two countries. It's a major advantage, given the significant manufacturing and trade flows between these nations. However, the big story with Union Pacific right now is its pending $85 billion merger with Norfolk Southern, which both parties agreed to last summer.
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The merger is currently in regulatory review. Regulators could approve, reject, or impose conditions on the merger, such as requiring asset sales. If approved as is, the merger would create a behemoth in the industry. Its railroad would span over 50,000 miles through 43 states, linking roughly 100 ports across North America. The companies expect a decision on the merger sometime in 2027.
Blockbuster acquisitions come with an assortment of risks Even if regulators approve the merger as is, there are several risks that investors should consider with Union Pacific.
The merger is an enormous deal. Union Pacific's market cap is about $157 billion, so this deal dramatically increases the company's size. Such large mergers almost always raise questions about how well the pieces fit together. A rocky post-merger transition could hurt operating efficiency or margins. There will likely be cost savings as Union Pacific cuts redundant expenses, but identifying, cutting, and realizing those savings can take several years.
On top of that, analysts currently see Union Pacific growing earnings by an average of 7% to 8% annually over the next three to five years, and Norfolk Southern growing earnings by an average of 4% to 5% over the same time period. Yet, Union Pacific trades at a forward P/E ratio of about 21 times 2026 earnings estimates. In other words, investors could be better off paying a slightly higher valuation for CSX, a more stable company with a stronger earnings growth outlook.
Union Pacific could look completely different once this merger saga plays out. Until then, you're buying Union Pacific for its merger story and long-term potential, not its current fundamentals. That makes CSX the better railroad stock to buy in 2026.
On June 02, 2026, we present a DCF analysis for Union Pacific Corp UNP , which has shown a price performance of +15.1% year-to-date and +21.6% over the past year. Despite this positive trend, our analysis indicates some caution regarding its current valuation.
DCF Earnings-based intrinsic value of $154.39 vs current price of $263.50 (margin of safety: -70.7%) DCF FCF-based intrinsic value of $152.67 vs current price (second opinion: -72.6% margin of safety) GF Score™ of 92/100 indicates a high reliability of the DCF inputs What Is UNP Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates Union Pacific's intrinsic value based on its expected future earnings growth. We assume a current EPS of $11.90, with a projected growth rate of 6.8% over the next ten years. The discount rate, calculated as the risk-free rate plus an equity risk premium, is set at 11%. After the growth phase, we apply a terminal growth rate of 4% for the subsequent ten years.
Parameter Value Current EPS (TTM, excl. non-recurring) $11.90 10-Year Growth Rate 6.8% 10-Year Treasury Rate 4.43% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project the EPS growth at 6.8% for ten years, resulting in a discounted value of $96.84 per share. In the second stage, we apply a terminal growth rate of 4% for the next ten years, yielding a discounted value of $57.55 per share. The intrinsic value is thus calculated as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.8%, discounted at 11% $96.84 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $57.55 Intrinsic Value Growth + Terminal $154.39 With a current price of $263.50, the intrinsic value of $154.39 indicates that Union Pacific is modestly overvalued, with a margin of safety of -70.7%. It is important to note that GuruFocus utilizes EPS excluding non-recurring items, as research indicates that stock prices are more closely correlated with earnings than with free cash flow. For further calculations, you can visit the UNP DCF Calculator.
What Does the Free Cash Flow DCF Say? When we apply the free cash flow (FCF) DCF model, we arrive at an intrinsic value of $152.67. This value is consistent with the earnings-based intrinsic value of $154.39, reinforcing the conclusion that Union Pacific is modestly overvalued, with a margin of safety of -72.6%.
How Does GF Value™ Compare to the DCF Models? The GF Value™ for Union Pacific is calculated at $244.62, providing a third perspective on the company's valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. While the DCF models suggest that Union Pacific is overvalued, the GF Value™ indicates a different stance, suggesting that the stock may be slightly overvalued at 7.7%. For more insights, visit the GF Value™ page.
What Does UNP's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been shown to generate higher long-term returns based on backtesting from 2006 to 2021. Union Pacific has a GF Score™ of 92/100, indicating strong fundamentals. The predictability rank is 3/5 stars, suggesting that the DCF model's reliability for this stock is moderate.
Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with lower predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions accurately.
What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the consensus indicates that Union Pacific is overvalued. Investors should exercise caution when considering this stock based on current valuations. For the full DCF analysis, visit the UNP DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is UNP's intrinsic value based on DCF?
According to our analysis, the earnings-based intrinsic value is $154.39, while the FCF-based intrinsic value is $152.67.
Is UNP overvalued or undervalued?
Both the DCF models and GF Value™ suggest that UNP is overvalued.
How reliable is the DCF model for UNP?
With a predictability rank of 3/5, the DCF model's reliability for UNP is moderate.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Marking a milestone in innovation and collaboration, Union Pacific Railroad on Tuesday unveiled its newest commemorative locomotive with Northrop Grumman and Wabtec, as No. 4547 began its first mission hauling Space Launch System solid rocket motor segments for NASA’s Artemis III lunar exploration program.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260603422961/en/
Union Pacific Railroad’s newest commemorative locomotive No. 4547 begins its first mission hauling rocket parts for NASA’s Artemis III lunar exploration program.
Departing from a shipping facility near Corinne, Utah, the locomotive carried components supporting NASA’s effort to explore deep space and return humanity to the moon. It was joined by No. 1616, another special commemorative locomotive that honors President Abraham Lincoln and Union Pacific’s rich history. Lincoln founded Union Pacific in 1862 when he signed the Pacific Railway Act, approving construction of the transcontinental railroad.
Union Pacific CEO Jim Vena joined Utah House Speaker Mike Schultz, Utah Senate President J. Stuart Adams, and leaders from Northrop Grumman, NASA and Wabtec for a ceremony marking the shipment and christening of No. 4547, a locomotive that honors President Donald J. Trump and commemorates America’s 250th anniversary.
“We are proud to honor President Donald J. Trump with this commemorative engine while helping advance the Artemis III mission,” Vena said. “As No. 4547 carries these rocket components, it represents the strength of our nation’s supply chain and our role in connecting the country – linking industries, communities and opportunity from our rail network to the surface of the moon.”
“From Northern Utah’s role in building the transcontinental railroad to powering exploration with our Space Launch System boosters, this partnership shows how American industries and innovation are building the future,” said Wendy Williams, vice president and general manager, launch and exploration, Northrop Grumman.
Artemis III is planned as NASA’s second crewed mission in its Artemis lunar exploration program. The mission will test integrated operations between the Orion spacecraft and commercial landers from SpaceX and Blue Origin to lay the groundwork for future missions, including a planned lunar landing as early as 2028.
Built by Wabtec, No. 4547 is the third in Union Pacific’s presidential locomotive series: No. 1616 honors President Abraham Lincoln, who founded Union Pacific in 1862, and No. 4141 recognizes President George H.W. Bush, a noted rail enthusiast.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
NORTHROP GRUMMAN
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260603422961/en/
No. 4547 Celebrates America’s 250th Anniversary and is the Third in Presidential Locomotive Series
CORINNE, Utah--(BUSINESS WIRE)--Marking a milestone in innovation and collaboration, Union Pacific Railroad on Tuesday unveiled its newest commemorative locomotive with Northrop Grumman and Wabtec, as No. 4547 began its first mission hauling Space Launch System solid rocket motor segments for NASA’s Artemis III lunar exploration program.
Departing from a shipping facility near Corinne, Utah, the locomotive carried components supporting NASA’s effort to explore deep space and return humanity to the moon. It was joined by No. 1616, another special commemorative locomotive that honors President Abraham Lincoln and Union Pacific’s rich history. Lincoln founded Union Pacific in 1862 when he signed the Pacific Railway Act, approving construction of the transcontinental railroad.
Union Pacific CEO Jim Vena joined Utah House Speaker Mike Schultz, Utah Senate President J. Stuart Adams, and leaders from Northrop Grumman, NASA and Wabtec for a ceremony marking the shipment and christening of No. 4547, a locomotive that honors President Donald J. Trump and commemorates America’s 250th anniversary.
“We are proud to honor President Donald J. Trump with this commemorative engine while helping advance the Artemis III mission,” Vena said. “As No. 4547 carries these rocket components, it represents the strength of our nation’s supply chain and our role in connecting the country – linking industries, communities and opportunity from our rail network to the surface of the moon.”
“From Northern Utah’s role in building the transcontinental railroad to powering exploration with our Space Launch System boosters, this partnership shows how American industries and innovation are building the future,” said Wendy Williams, vice president and general manager, launch and exploration, Northrop Grumman.
Artemis III is planned as NASA’s second crewed mission in its Artemis lunar exploration program. The mission will test integrated operations between the Orion spacecraft and commercial landers from SpaceX and Blue Origin to lay the groundwork for future missions, including a planned lunar landing as early as 2028.
Built by Wabtec, No. 4547 is the third in Union Pacific’s presidential locomotive series: No. 1616 honors President Abraham Lincoln, who founded Union Pacific in 1862, and No. 4141 recognizes President George H.W. Bush, a noted rail enthusiast.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
NORTHROP GRUMMAN
Northrop Grumman is a leading global aerospace and defense technology company. Our pioneering solutions equip our customers with the capabilities they need to connect and protect the world and push the boundaries of human exploration across the universe. Driven by a shared purpose to solve our customers’ toughest problems, our employees define possible every day.
OMAHA, Neb.--(BUSINESS WIRE)--Richard “Dick” Davidson, the former chairman and chief executive officer of Union Pacific Railroad who helped shape the modern railroad by expanding its footprint and advancing its technology, has died at the age of 84.
“Dick dedicated his life to railroading, working his way up from brakeman to CEO,” said Union Pacific CEO Jim Vena. “He loved this industry, believed in railroaders and set a standard for leadership that still guides Union Pacific today. We mourn his loss and extend our deepest condolences to his family and friends.”
A Career Born on the Railroad
Davidson was born on Jan. 9, 1942, in Allen, Kansas. Raised on a family farm by his mother after his father's death when Davidson was six years old, he learned early the values of self-reliance and hard work. To help pay for college, Davidson signed on as a part-time brakeman for the Missouri Pacific Railroad, launching what would become a lifelong career in railroading.
After graduating from Washburn University with a Bachelor of Arts degree, Davidson accepted a position in Missouri Pacific's management training program and rapidly rose through the organization. He continued climbing the ranks, serving as assistant general manager in Kansas City and becoming vice president of operations in 1976.
Leading Union Pacific
When Union Pacific merged with Missouri Pacific in 1982, Davidson became vice president of operations for the combined railroad. He served in a succession of expanding leadership roles before being elevated to president and CEO of Union Pacific Railroad in 1991. He was named chairman and CEO of Union Pacific Corporation in 1997.
During his tenure, Davidson oversaw the acquisitions of Chicago & North Western Railway and Southern Pacific Railroad. The Southern Pacific merger nearly doubled the size of Union Pacific and expanded the railroad's reach in the West and South, but absorbing the struggling railroad created operational challenges. Davidson responded with major investments in capital projects, modernizing the company's technology infrastructure and decentralizing operations. Union Pacific emerged stronger, and the operational framework Davidson put in place endured long after his retirement.
Recognition and Service Beyond the Railroad
Davidson's contributions to American industry were widely recognized. He was inducted into the Horatio Alger Association of Distinguished Americans, named to the Kansas Business Hall of Fame and the Nebraska Business Hall of Fame, and honored as Kansan of the Year by the Native Sons and Daughters of Kansas. He also received an honorary doctorate from Washburn University.
In addition to his positions at Union Pacific, Davidson served as chair of the Greater Omaha Chamber of Commerce, a director at Creighton University, and a member of the boards of the Kroger Company, the Boy Scouts of America, and the Capitol Visitors Center. He also served as chairman of President George W. Bush's National Infrastructure Advisory Board.
Davidson, who lived in Naples, Florida, with his wife Trish, was a loving husband, father and grandfather. A celebration of life will be held at a future date.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
Richard “Dick” Davidson, the former chairman and chief executive officer of Union Pacific Railroad who helped shape the modern railroad by expanding its footprint and advancing its technology, has died at the age of 84.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260605641628/en/
Union Pacific Railroad former Chairman and CEO Dick Davidson
“Dick dedicated his life to railroading, working his way up from brakeman to CEO,” said Union Pacific CEO Jim Vena. “He loved this industry, believed in railroaders and set a standard for leadership that still guides Union Pacific today. We mourn his loss and extend our deepest condolences to his family and friends.”
A Career Born on the Railroad
Davidson was born on Jan. 9, 1942, in Allen, Kansas. Raised on a family farm by his mother after his father's death when Davidson was six years old, he learned early the values of self-reliance and hard work. To help pay for college, Davidson signed on as a part-time brakeman for the Missouri Pacific Railroad, launching what would become a lifelong career in railroading.
After graduating from Washburn University with a Bachelor of Arts degree, Davidson accepted a position in Missouri Pacific's management training program and rapidly rose through the organization. He continued climbing the ranks, serving as assistant general manager in Kansas City and becoming vice president of operations in 1976.
Leading Union Pacific
When Union Pacific merged with Missouri Pacific in 1982, Davidson became vice president of operations for the combined railroad. He served in a succession of expanding leadership roles before being elevated to president and CEO of Union Pacific Railroad in 1991. He was named chairman and CEO of Union Pacific Corporation in 1997.
During his tenure, Davidson oversaw the acquisitions of Chicago & North Western Railway and Southern Pacific Railroad. The Southern Pacific merger nearly doubled the size of Union Pacific and expanded the railroad's reach in the West and South, but absorbing the struggling railroad created operational challenges. Davidson responded with major investments in capital projects, modernizing the company's technology infrastructure and decentralizing operations. Union Pacific emerged stronger, and the operational framework Davidson put in place endured long after his retirement.
Recognition and Service Beyond the Railroad
Davidson's contributions to American industry were widely recognized. He was inducted into the Horatio Alger Association of Distinguished Americans, named to the Kansas Business Hall of Fame and the Nebraska Business Hall of Fame, and honored as Kansan of the Year by the Native Sons and Daughters of Kansas. He also received an honorary doctorate from Washburn University.
In addition to his positions at Union Pacific, Davidson served as chair of the Greater Omaha Chamber of Commerce, a director at Creighton University, and a member of the boards of the Kroger Company, the Boy Scouts of America, and the Capitol Visitors Center. He also served as chairman of President George W. Bush's National Infrastructure Advisory Board.
Davidson, who lived in Naples, Florida, with his wife Trish, was a loving husband, father and grandfather. A celebration of life will be held at a future date.
ABOUT UNION PACIFIC
Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260605641628/en/
CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs. Insider Cluster Buys: Stocks that multiple company officers and directors have bought. Double Buys: Companies that both Gurus and Insiders are buying Triple Buys: Companies that both Gurus and Insiders are buying, and Company is buying back.
The so-called Trump Ballroom Tracker, a financial index used to track the companies that have donated to the president’s new ballroom project, has significantly outperformed the market this year.
More precisely, the tracker, launched by Quiver Quantitative on October 27, 2025, has gained roughly 26% so far in 2026. In comparison, the S&P 500 has gone up just 10.82% in the same time period, according to data from the trading platform Autopilot.
In other words, the Trump Ballroom Tracker has outperformed the S&P 500’s gain by 15.18 percentage points. In relative terms, the portfolio has delivered about 140% more than the benchmark index in more or less five months.
Trump donor portfolio tracker vs. S&P 500 YTD. Source: Autopilot (@Autopilot) Most notable Trump Ballroom Tracker gains Several constituents of the Trump Ballroom Tracker have posted substantial gains since October. Most notably, the memory chip maker Micron Technology (NASDAQ: MU) has led the group with a staggering 352.5% return.
Other noteworthy performers include Caterpillar (NYSE: CAT) with a return of 78.4% and Alphabet (NASDAQ: GOOGL) with 38.2%. Also worth mentioning are gainers such as Union Pacific (NYSE: UNP), which is up 20.9%, Apple (NASDAQ: AAPL), up 15.8%, and Amazon (NASDAQ: AMZN), which has gained 11.8%.
However, the performance across the basket has been far from uniform, as several high-profile technology names have not been so fortunate. For instance, Microsoft (NASDAQ: MSFT) is down 19.4%, Meta Platforms (NASDAQ: META) has fallen 16.4%, while Palantir (NASDAQ: PLTR) has lost 25.1% since the tracker debuted. The worst performer, however, was the cryptocurrency exchange Coinbase, which has declined 54.5%.
Still, despite some of the individual holdings performing more poorly than expected, the strength of the overall tracker cannot be denied, even if it remains just an unconventional experiment in measuring the potential market impact of corporate political engagement.
Featured image via Shutterstock
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All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Headquartered in Omaha, Union Pacific (UNP - Free Report) is a Transportation stock that has seen a price change of 15.44% so far this year. The railroad is currently shelling out a dividend of $1.38 per share, with a dividend yield of 2.07%. This compares to the Transportation - Rail industry's yield of 0.74% and the S&P 500's yield of 1.46%.
Looking at dividend growth, the company's current annualized dividend of $5.52 is up 1.5% from last year. Over the last 5 years, Union Pacific has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Union Pacific's current payout ratio is 46%, meaning it paid out 46% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UNP expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $12.54 per share, which represents a year-over-year growth rate of 7.55%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. It's important to keep in mind that not all companies provide a quarterly payout.
For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UNP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
