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Jan 08, 2019
Union Pacific (UNP, $138.65) Climbs +8% ,After Company Chooses Railroad Veteran Jim Vena as COO

Union Pacific (UNP, $138.65) Climbs +8% ,After Company Chooses Railroad Veteran Jim Vena as COO

Union Pacific Corp.’s stock price jumped +8% in early trading on Tuesday, following the announcement of  Jim Vena as the new chief operating officer (COO) at the railroad company.

Railroad industry veteran Vena, 60, worked with the late Hunter Harrison  to implement Harrison’s designed “precision scheduling railroading” (PSR) strategy for improving several railroads.

Union Pacific connects 23 states in western United States. But the company has faced challenges with service problems and rail network congestion, thereby dimming its profitability outlook for 2019. Nevertheless, the company adopted the PSR plan on Oct. 1 to improve the situation and to boost profitability by 2020.

The appointment of Vena made several analysts more hopeful of Union Pacific’s ability to successfully implement the PSR strategy. This led to the analysts’ upgrades in stock recommendations and/or price targets for the railroad company.

Related Ticker: UNP

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


UNP's Stochastic Oscillator remains in oversold zone for 6 days

The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Indicator entered the oversold zone -- be on the watch for UNP's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.

Following a +1.94% 3-day Advance, the price is estimated to grow further. Considering data from situations where UNP advanced for three days, in 188 of 333 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.

The Aroon Indicator entered an Uptrend today. In 99 of 252 cases where UNP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 39%.

Bearish Trend Analysis

The Momentum Indicator moved below the 0 level on September 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on UNP as a result. In 39 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 47%.

The Moving Average Convergence Divergence Histogram (MACD) for UNP turned negative on August 31, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 26 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 58%.

UNP moved below its 50-day moving average on September 01, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for UNP crossed bearishly below the 50-day moving average on September 10, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 9 of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 45%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where UNP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.

UNP broke above its upper Bollinger Band on August 19, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron PE Growth Rating for this company is 23 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is 26 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Price Growth Rating for this company is 45 (best 1 - 100 worst), indicating steady price growth. UNP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 47 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock slightly better than average.

The Tickeron Valuation Rating of 87 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.170) is normal, around the industry mean (5.404). P/E Ratio (23.028) is within average values for comparable stocks, (25.200). Projected Growth (PEG Ratio) (2.823) is also within normal values, averaging (2.250). Dividend Yield (0.020) settles around the average of (0.019) among similar stocks. UNP's P/S Ratio (6.645) is slightly higher than the industry average of (3.776).

Notable companies

The most notable companies in this group are Union Pacific Corp (NYSE:UNP), CSX Corp (NASDAQ:CSX), Norfolk Southern Corp (NYSE:NSC).

Industry description

The Railroad industry includes passenger and freight transportation services along rail lines. This also includes companies that provide maintenance and switching duties as part of rail services. Within North America, the industry is largely dominated by some large operators. Several short-line railroads serve regional and local routes. Union Pacific Corporation, Canadian National Railway Company, and CSX Corporation are some of the prominent names in the business. The railroad business is relatively cyclical; economic expansion boost the freight services in particular, while economic stagnation often dampens transportation demand.

Market Cap

The average market capitalization across the Railroads Industry is 44.72B. The market cap for tickers in the group ranges from 320 to 168.96B. UNP holds the highest valuation in this group at 168.96B. The lowest valued company is URAL at 320.

High and low price notable news

The average weekly price growth across all stocks in the Railroads Industry was 2%. For the same Industry, the average monthly price growth was 28%, and the average quarterly price growth was 35%. SWVL experienced the highest price growth at 44%, while RVSN experienced the biggest fall at -4%.

Volume

The average weekly volume growth across all stocks in the Railroads Industry was -25%. For the same stocks of the Industry, the average monthly volume growth was -16% and the average quarterly volume growth was -43%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 72
P/E Growth Rating: 25
Price Growth Rating: 53
SMR Rating: 59
Profit Risk Rating: 63
Seasonality Score: -19 (-100 ... +100)
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General Information

a provider of railroad and freight transportation services

Industry Railroads

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Details
Industry
Railroads
Address
1400 Douglas Street
Phone
+1 402 544-5000
Employees
29287
Web
https://www.up.com
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