The Ultimate Guide to Union Pacific’s Stock Performance and Forecast
Union Pacific Corporation is a publicly traded railroad holding company headquartered in Omaha, Nebraska. Its principal operating company is Union Pacific Railroad, which connects 23 states in the western two-thirds of the United States. The company plays a crucial role in the global supply chain by providing a reliable and efficient freight transportation network.
Financial Performance and Ratios
Union Pacific Railroad operates over 32,693 route miles and serves many of the fastest-growing U.S. population centers. The company’s diversified business mix includes Bulk, Industrial, and Premium business groups. Union Pacific is committed to sustainability and has invested significantly in technology to improve fuel efficiency and reduce greenhouse gas emissions.
For the fiscal year 2023, Union Pacific reported: Revenue: $24.1 billion, Operating income: $9.1 billion, Net income: $6.4 billion. Key financial ratios include: Price-to-Earnings (P/E) ratio: 21.30, Price-to-Book (P/B) ratio: 8.42, Debt-to-Equity ratio: 1.97, Return on Equity (ROE): 43.40%, Return on Assets (ROA): 8.99%.
Union Pacific Stock Price Performance
Union Pacific Corporation (UNP) stock price has shown some volatility recently. As of January 8, 2025, the stock price was $231.76, with a 52-week high of $258.66 and a low of $218.55. Over the last six months, the stock has risen by 2.96%, but it has declined by 3.71% in the last three months.
Investment Insight
Union Pacific Corporation is a robust company boasting stable cash flows and consistently high returns on equity. Under especially favorable market conditions, its stock price has the potential to increase by over 20% annually on average. This growth projection is supported by the company’s impressive performance metrics. Nonetheless, given the current global uncertainties, one might anticipate slightly lower, but still substantial, growth.
Union Pacific Corporation Stock Forecast**
| MIN/MAX | 2025 | 2026 | 2027 | 2028 | 2029 |
|---|---|---|---|---|---|
| MIN | 631.61 | 663.86 | 697.76 | 733.39 | 770.84 |
| MAX | 747.52 | 785.69 | 825.82 | 867.98 | 912.31 |
When to buy?
Consider buying now. Whether you’re looking to open a new position or add to an existing one, this stock presents a compelling opportunity. With a PEG ratio of 0.19 and an equity risk premium of 13.17%, it indicates significant growth potential and favorable investment conditions.
Dividend Policy
The company has a consistent dividend policy, with a current dividend yield of 2.35%. The company has a payout ratio of 49.26%, indicating a balance between returning profits to shareholders and reinvesting in the business.
Conclusion
Union Pacific Corporation demonstrates strong financial health and consistent performance, making it a compelling investment opportunity. With stable cash flows, high return on equity, and favorable market conditions, the company shows potential for significant stock price growth. However, investors should remain cautious of global uncertainties that might affect growth projections.
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*Investment analysis involves scrutinizing over 50 different criteria to assess a company's ability to generate shareholder value. This comprehensive approach includes tracking revenue, profit, equity dynamics, dividend payments, cash flow, debt and financial management, stock price trends, bankruptcy risk, F-Score, and more. These metrics are consolidated into a straightforward Investment Scoreboard, which effectively helps predict future stock price movements.
**Use the price forecast to manage the risk of your investments.