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UNP vs WAB
Which Stock Would AI Choose? Union Pacific (UNP) vs. Westinghouse Air Brake (WAB) Stock Comparison
Key Takeaways
- UNP operates as a major North American railroad with stable cash flows, a dividend yield near 2%, and recent support from a proposed merger with Norfolk Southern.
- WAB supplies rail equipment and technology, delivering stronger recent revenue growth of 17.5% year-over-year in Q2 2026 and an upgraded full-year outlook.
- Both stocks trade in the rail sector but differ in business models: UNP focuses on freight operations while WAB benefits from equipment demand and a growing backlog exceeding $30 billion.
- Recent market activity shows UNP shares pulling back from July highs near $306 amid broader sector rotation, while WAB approached record levels near $280 following earnings beats.
- Analyst sentiment remains constructive for both, with UNP receiving a UBS upgrade to Buy and WAB holding a Moderate Buy consensus and average target around $313.
- Relative performance highlights trade-offs between UNP’s defensive stability and dividend profile versus WAB’s higher growth trajectory and margin expansion.
Introduction
Union Pacific Corporation (UNP) and Westinghouse Air Brake Technologies Corporation (WAB) represent complementary segments of the North American rail ecosystem. UNP provides freight transportation services across a vast network, while WAB manufactures locomotives, signaling systems, and related components. Investors and traders focused on transportation infrastructure, industrial cyclical exposure, or relative value within the rail complex may find this comparison useful for assessing positioning, momentum, and sector-specific catalysts in the current market environment.
UNP Overview and Recent Performance
Union Pacific Corporation operates one of the largest railroad networks in the United States, transporting freight across the western two-thirds of the country. In recent weeks, shares eased from a July peak near $306 amid broader market rotation yet remained supported by solid second-quarter results, including revenue of approximately $6.9 billion and adjusted earnings per share of $3.41. Pricing power in freight operations and volume growth contributed to sentiment. A proposed combination with Norfolk Southern has drawn customer endorsements and regulatory attention, providing a longer-term catalyst. Analyst upgrades, including from UBS to Buy with a raised target, reflected optimism around 2027 growth prospects.
WAB Overview and Recent Performance
Westinghouse Air Brake Technologies Corporation, commonly known as Wabtec, supplies equipment, systems, and digital solutions for the global rail industry through its Freight and Transit segments. Recent market activity featured strong second-quarter performance with revenue reaching $3.18 billion, up 17.5% year-over-year, and adjusted earnings per share of $2.76. The company raised full-year 2026 revenue guidance following robust order momentum and backlog expansion. Shares advanced toward record territory near $280, outperforming some rail peers on the earnings reaction. A Moderate Buy consensus among analysts, with an average price target around $313, underscored positive positioning driven by demand for modernization and aftermarket services.
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Head-to-Head Comparison
Union Pacific functions as a rail operator with high operating leverage and substantial fixed assets, generating recurring revenue from freight volumes and pricing. Westinghouse Air Brake operates upstream as an equipment and technology provider, benefiting from capital spending cycles, modernization programs, and aftermarket demand. Recent momentum favored WAB through double-digit revenue growth and guidance increases, while UNP offered greater earnings stability and a dividend commitment. Risk factors differ: UNP faces regulatory and integration uncertainties from the Norfolk Southern proposal, whereas WAB contends with supply-chain variables and exposure to global transit spending. Sector exposure overlaps in rail but diverges in cyclical sensitivity, with WAB showing higher beta to equipment orders and UNP tied more closely to economic freight activity.
Tickeron AI Verdict
Based on observable factors such as earnings momentum, guidance revisions, and relative price behavior in recent market activity, Tickeron’s AI models currently assign a higher probabilistic weighting to WAB for short-term trend consistency and growth catalysts. UNP retains appeal through defensive characteristics and merger-related developments, yet the combination of stronger top-line expansion and backlog visibility at WAB supports a modest edge in current positioning. Outcomes remain subject to broader market conditions and sector rotation.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is UNP is a StrongBuy and WAB is a Hold.
UNP | WAB | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 87 Overvalued | 89 Overvalued | |
PROFIT vs RISK RATING 1..100 | 41 | 4 | |
SMR RATING 1..100 | 26 | 65 | |
PRICE GROWTH RATING 1..100 | 46 | 30 | |
P/E GROWTH RATING 1..100 | 32 | 16 | |
SEASONALITY SCORE 1..100 | 65 | 90 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
UNP's Valuation (87) in the Railroads industry is in the same range as WAB (89) in the Trucks Or Construction Or Farm Machinery industry. This means that UNP’s stock grew similarly to WAB’s over the last 12 months.
WAB's Profit vs Risk Rating (4) in the Trucks Or Construction Or Farm Machinery industry is somewhat better than the same rating for UNP (41) in the Railroads industry. This means that WAB’s stock grew somewhat faster than UNP’s over the last 12 months.
UNP's SMR Rating (26) in the Railroads industry is somewhat better than the same rating for WAB (65) in the Trucks Or Construction Or Farm Machinery industry. This means that UNP’s stock grew somewhat faster than WAB’s over the last 12 months.
WAB's Price Growth Rating (30) in the Trucks Or Construction Or Farm Machinery industry is in the same range as UNP (46) in the Railroads industry. This means that WAB’s stock grew similarly to UNP’s over the last 12 months.
WAB's P/E Growth Rating (16) in the Trucks Or Construction Or Farm Machinery industry is in the same range as UNP (32) in the Railroads industry. This means that WAB’s stock grew similarly to UNP’s over the last 12 months.
| UNP | WAB | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 58% | N/A |
| Stochastic ODDS (%) | 3 days ago 48% | 3 days ago 50% |
| Momentum ODDS (%) | 3 days ago 64% | 3 days ago 49% |
| MACD ODDS (%) | 3 days ago 69% | 3 days ago 41% |
| TrendWeek ODDS (%) | 3 days ago 53% | 3 days ago 52% |
| TrendMonth ODDS (%) | 3 days ago 53% | 3 days ago 63% |
| Advances ODDS (%) | 3 days ago 55% | 19 days ago 64% |
| Declines ODDS (%) | 5 days ago 46% | 4 days ago 44% |
| BollingerBands ODDS (%) | 3 days ago 62% | 3 days ago 64% |
| Aroon ODDS (%) | 3 days ago 55% | 3 days ago 72% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
UNP’s FA Score shows that 2 FA rating(s) are green while WAB’s FA Score has 3 green FA rating(s).
- UNP’s FA Score: 2 green, 3 red.
- WAB’s FA Score: 3 green, 2 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
UNP’s TA Score shows that 5 TA indicator(s) are bullish while WAB’s TA Score has 2 bullish TA indicator(s).
- UNP’s TA Score: 5 bullish, 4 bearish.
- WAB’s TA Score: 2 bullish, 7 bearish.
Price Growth
UNP (@Railroads) experienced а +0.02% price change this week, while WAB (@Railroads) price change was -0.73% for the same time period.
The average weekly price growth across all stocks in the @Railroads industry was -2.12%. For the same industry, the average monthly price growth was -8.88%, and the average quarterly price growth was +7.81%.
Reported Earning Dates
UNP is expected to report earnings on Oct 22, 2026.
WAB is expected to report earnings on Oct 21, 2026.
Industries' Descriptions
@Railroads (-2.12% weekly)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.
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UNP and
Correlation & Price change
A.I.dvisor indicates that over the last year, UNP has been closely correlated with NSC. These tickers have moved in lockstep 94% of the time. This A.I.-generated data suggests there is a high statistical probability that if UNP jumps, then NSC could also see price increases.