Union Pacific Corporation [UNP] – A riskier no matter how short-term sentiments looks

Union Pacific Corporation [NYSE: UNP] stock went down by -2.00% or -3.26 points down from its previous closing price of 163.05. The stock reached $159.79 during the last trading session. During the course of the last 5 trading session in the week, UNP share price went up during 2 out of 5 days, that way gaining 4.92% in the period of the last 7 days.

UNP had two major price movements with the latest trading session as the price jumped to a high of $161.85, at one point touching $158.225. The latest high is set lower that the high price recorded in the period of the last 52 weeks, set at -15.44%. The 52-week high currently stands at 188.96 distance from the present share price, noting recovery -8.88% after the recent low of 105.08.

Union Pacific Corporation [NYSE:UNP]: Analyst Rating and Earnings

Pro stock traders frequently make sure to pay attention what expert market analysts are saying about a potential stock buy. Regarding Union Pacific Corporation [UNP] right now, the most recent ratings from Wall St. analysts that we can see right now is regarding the quarter that’s slated to end in 3/30/2020. On average, stock market experts give UNP an Overweight rating. The average 12-month price forecast for this stock is $159.79, with the high estimate being $185.00, the low estimate being $125.00 and the median estimate amounting to $167.00. This is compared to its latest closing price of $163.05.

Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Union Pacific Corporation [UNP] is sitting at 4.14. This is compared to 1 month ago, when its average rating was 4.20.

Keep your eyes peeled for the next scheduled financial results to be made public for this company, which are scheduled to be released on 07/16/2020.

Fundamental Analysis of Union Pacific Corporation [UNP]

Now let’s turn to look at profitability: with a current Operating Margin for Union Pacific Corporation [UNP] sitting at 39.90% and its Gross Margin at 79.90%, this company’s Net Margin is now 28.00. These measurements indicate that Union Pacific Corporation [UNP] is generating considerably more profit, after expenses are accounted for, compared to its market peers.

This company’s Return on Total Capital is 19.45, and its Return on Invested Capital has reached 13.95. Its Return on Equity is 33.70%, and its Return on Assets is 9.80%. These metrics all suggest that Union Pacific Corporation is doing well at using the money it earns to generate returns.

Turning to investigate this organization’s capital structure, Union Pacific Corporation [UNP] has generated a Total Debt to Total Equity ratio of 149.12. Similarly, its Total Debt to Total Capital is 59.86, while its Total Debt to Total Assets stands at 43.46. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 140.19, and its Long-Term Debt to Total Capital is 56.27.

What about valuation? This company’s Enterprise Value to EBITDA is 11.80 and its Total Debt to EBITDA Value is 2.34. The Enterprise Value to Sales for this firm is now 5.90, and its Total Debt to Enterprise Value stands at 0.18. Union Pacific Corporation [UNP] has a Price to Book Ratio of 6.90, a Price to Cash Flow Ratio of 14.83 and P/E Ratio of 18.57. These metrics all suggest that Union Pacific Corporation is more likely to generate a positive ROI.

Union Pacific Corporation [UNP] has 692.40M shares outstanding, amounting to a total market cap of 110.64B. Its stock price has been found in the range of 105.08 to 188.96. At its current price, it has moved down by -15.44% from its 52-week high, and it has moved up 52.07% from its 52-week low.

This stock’s Beta value is currently 1.04, which indicates that it is 2.33% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 58.11. This RSI score is good, suggesting this stock is neither overbought or oversold.

Conclusion: Is Union Pacific Corporation [UNP] a Reliable Buy?

Shares of Union Pacific Corporation [UNP], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.

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Author: Kevin Freeman