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.
The Aroon Indicator for UNP entered a downward trend on April 18, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 155 similar instances where the Aroon Indicator formed such a pattern. In of the 155 cases the stock moved lower. This puts the odds of a downward move at .
UNP moved below its 50-day moving average on March 22, 2024 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 March 25, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 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 .
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 of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator shows that the ticker has stayed in the oversold zone for 4 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.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 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 upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UNP advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
UNP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (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 Price Growth Rating for this company is (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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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: UNP's P/B Ratio (9.479) is very high in comparison to the industry average of (2.095). P/E Ratio (21.991) is within average values for comparable stocks, (27.876). Projected Growth (PEG Ratio) (2.503) is also within normal values, averaging (1.614). Dividend Yield (0.023) settles around the average of (0.037) among similar stocks. P/S Ratio (5.814) is also within normal values, averaging (4.311).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of railroad and freight transportation services
Industry Railroads