Union Pacific (UNP) Sees Record Freight Growth Despite Challenges

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Apr 24, 2025
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  • Union Pacific reports steady financials with a focus on shareholder returns and growth opportunities.
  • Analysts predict a potential 18.43% upside in Union Pacific's stock price.
  • Union Pacific's GF Value suggests a fair value growth of 14.38% from its current stock price.

Union Pacific (UNP, Financial) has reported its first-quarter 2025 financial results, highlighting significant strides in operational efficiency and revenue. The company achieved a 60.7% operating ratio alongside a 4% increase in freight revenue, excluding fuel impacts. Maintaining a stable net income of $1.6 billion and an earnings per share (EPS) of $2.70, Union Pacific demonstrates financial resilience. Furthermore, the company has returned $2.5 billion to its shareholders. Looking ahead, Union Pacific anticipates robust growth, particularly in grain exports and intermodal conversions, bolstering its long-term prospects.

Wall Street Analysts Forecast

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According to projections from 27 analysts, Union Pacific Corp (UNP, Financial) is expected to see its stock price reach an average of $254.23 over the next year. The high estimate is pegged at $285.00, while the low sits at $200.00. This average target price signifies a potential upside of 18.43% compared to the current share price of $214.66. Investors seeking detailed projections can consult the Union Pacific Corp (UNP) Forecast page for more insights.

The consensus from 31 brokerage firms rates Union Pacific Corp (UNP, Financial) at an average of 2.1, translating to an "Outperform" recommendation. The scale used ranges from 1, indicating a Strong Buy, to 5, representing a Sell.

From the perspective of GuruFocus, the estimated GF Value for Union Pacific Corp (UNP, Financial) within the next year is $245.53. This valuation suggests a 14.38% upside from the current price of $214.66. The GF Value is a proprietary metric from GuruFocus, designed to provide an estimation of what the stock's fair trading value should be. This estimate is derived from historical trading multiples, past growth patterns, and future business performance forecasts. Investors can explore more about the company's valuation on the Union Pacific Corp (UNP) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.