UNP Stock Analysis — Union Pacific Corporation
Sector: Industrials
AI Verdict
Union Pacific trades at 19.7x next year's earnings for 22.1% expected growth, which is cheap for the growth you're getting if its rail network moat keeps pricing power intact.
Competitive Moat
Union Pacific operates the largest rail network in the Western U.S., giving it unmatched right-of-way access and scale that new entrants can't replicate. Its extensive infrastructure and long-term customer contracts create high barriers to entry and pricing power in freight transport.
Summary
UNP is notable for its dominant rail infrastructure and a forecasted 22.1% jump in earnings next year.
Where It Stands
Union Pacific has delivered a 27.62% 1-year return with an RSI of 68.9 (elevated), and trades at 19.7x forward earnings versus the industrials median of 20x.
Key Metrics
- RSI: 68.9 — Near Overbought
- Trailing P/E: 24.1x
- Forward P/E: 19.7x
- PEG Ratio: 1.08
- Earnings Growth: +0.2%
- Revenue Growth: +0.0%
- Market Cap: $173.7B
- Dividend Yield: 0.02%
- 1-Year Return: 27.62%
- 52-Week High: $303.15
- 52-Week Low: $210.84
Analyst Consensus
19 Buy · 10 Hold · 0 Sell (29 analysts)
Bull Case
With forward EPS expected to rise 22.1% and a forward P/E of 19.7x, you're paying a fair price for above-average growth in a sector where scale is hard to match.
Bear Case
An RSI of 68.9 signals pullback risk, so a slide to a neutral RSI could mean a 5–10% correction even if fundamentals hold.
Catalyst to Watch
Watch for quarterly volume and pricing updates — a miss on freight demand or margins would challenge the 22.1% EPS growth expectation.