Latest news with #UNP
Yahoo
6 days ago
- Business
- Yahoo
2 Cash-Producing Stocks Worth Investigating and 1 to Turn Down
Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities. Not all companies are created equal, and StockStory is here to surface the ones with real upside. Keeping that in mind, here are two cash-producing companies that reinvest wisely to drive long-term success and one that may struggle to keep up. Trailing 12-Month Free Cash Flow Margin: 11.3% Part of the transcontinental railroad project, Union Pacific (NYSE:UNP) is a freight transportation company that operates a major railroad network. Why Are We Out on UNP? Weak unit sales over the past two years imply it may need to invest in improvements to get back on track Flat earnings per share over the last two years underperformed the sector average Free cash flow margin dropped by 6 percentage points over the last five years, implying the company became more capital intensive as competition picked up Union Pacific is trading at $219.24 per share, or 18.2x forward P/E. If you're considering UNP for your portfolio, see our FREE research report to learn more. Trailing 12-Month Free Cash Flow Margin: 21.8% Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services. Why Could FVRR Be a Winner? Customer spending is rising as the company has focused on monetization over the last two years, leading to 17.4% annual growth in its average revenue per buyer Incremental sales over the last three years have been highly profitable as its earnings per share increased by 52.1% annually, topping its revenue gains Free cash flow margin expanded by 9.7 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends Fiverr's stock price of $32.99 implies a valuation ratio of 14x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free. Trailing 12-Month Free Cash Flow Margin: 13.8% Credited with an invention in the 1950s that improved crop yields, Valmont (NYSE:VMI) provides engineered products and infrastructure services for the agricultural industry. Why Does VMI Stand Out? Operating margin expanded by 4.9 percentage points over the last five years as it scaled and became more efficient Earnings growth has massively outpaced its peers over the last two years as its EPS has compounded at 18.7% annually Free cash flow margin increased by 7.9 percentage points over the last five years, giving the company more capital to invest or return to shareholders At $317.30 per share, Valmont trades at 17.1x forward P/E. Is now a good time to buy? See for yourself in our full research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.
Yahoo
19-05-2025
- Business
- Yahoo
Argus Sees Union Pacific (UNP) As A Compelling Opportunity
On May 16, Argus Research analyst Kristina Ruggeri pointed to Union Pacific Corp.'s (NYSE:UNP) recent underperformance as a buying opportunity. The analyst based his positive view on the company's ability to maintain a healthy operating margin despite macro pressures. He attributed this solid performance to higher volumes, productivity gains, and better value-based pricing. Additionally, the analyst cited Union Pacific's above-industry-average dividend yields of about 2.3% as positive for the stock. He reiterated his Buy rating on the stock with a price target of $275. A freight train carrying railcar equipment in the foreground with a commercial area in the background. A day before, BofA analyst Ken Hoexter raised his price target on Union Pacific Corp. (NYSE:UNP) to $262 from $256 while reiterating his Buy rating. However, their update was more broad-based as BofA analysts raised price targets and valuation multiples across the rails, less-than-truckload shippers, truckload shippers, and intermodal carriers industry. As per the report, they have become slightly more positive on this space as they now see increased volume flows at least until mid-Summer, compared to a recessionary outlook earlier. This led to upward estimate revisions across that industry. UNP, as a railroad company, remains an integral part of the global supply chain. It enjoys stable fundamentals and a well-defined business strategy. By rail, it connects 23 U.S. states in the western two-thirds of the country. While we acknowledge the potential of UNP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNP and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None.
Yahoo
13-05-2025
- Business
- Yahoo
Union Pacific Corporation (UNP): A Bull Case Theory
We came across a bullish thesis on Union Pacific Corporation (UNP) on Substack by Peter Thomason. In this article, we will summarize the bulls' thesis on UNP. Union Pacific Corporation (UNP)'s share was trading at $216.84 as of May 8th. UNP's trailing and forward P/E were 19.54 and 18.55 respectively according to Yahoo Finance. A slow moving freight train, revealing the importance of railway equipment. Union Pacific Corp represents a long-term, resilient investment opportunity rooted in the structural advantages of the railroad industry. Railroads offer the most cost-effective and carbon-efficient means of transporting goods over long distances, especially when compared to trucks and airplanes. While large cargo ships are cheaper, their use is limited to water-accessible routes, leaving railroads as the most viable and indispensable inland freight solution. The North American rail market is an oligopoly dominated by just seven major players across the U.S., Mexico, and Canada. Once a railroad operator establishes its extensive network of tracks, it essentially secures a monopoly over the transportation corridors it serves. This creates significant barriers to entry, as it is economically irrational for competitors to build parallel infrastructure due to the risk of overcapacity and mutually damaging price wars. Regulatory hurdles and the immense capital required to scale further deter new entrants. As a result, Union Pacific and its peers operate in a protected environment with durable pricing power and dependable cash flows. Although the returns on capital are solid rather than spectacular, the predictable nature of the business, limited competition, and high operational leverage ensure Union Pacific remains a vital and attractive investment for the long haul. Union Pacific Corporation (UNP) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 93 hedge fund portfolios held UNP at the end of the fourth quarter which was 78 in the previous quarter. While we acknowledge the risk and potential of UNP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than UNP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Jim Cramer on Union Pacific (UNP): Will His Pyramid Strategy Pay Off?
We recently published a list of . In this article, we are going to take a look at where Union Pacific Corporation (NYSE:UNP) stands against other stocks that Jim Cramer discussed. The optimism over US-China trade talks is increasing as the US Treasury Secretary is set to meet China's trade negotiator in Switzerland later this week. In a latest program on CNBC, Jim Cramer expressed his renewed optimism for major tech stocks and said the negative market sentiment about these companies was weakened after the latest quarterly reports. 'Sometimes you forget why you ever liked something in the first place. Take the super stocks, the hyperscalers, the tech titans—I don't care whatever you want to call them. These stocks all got lumped together because of their size, their gigantic market caps that dwarf the rest of the market, and then they lost their juice,' Cramer said. 'It's their scale, their smarts, their moats, their balance sheets, and their sensational products.' Jim Cramer also talked about the latest data in company reports that shows the demand for data centers remains strong. READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In. For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. With each stock, we mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Number of Hedge Fund Investors: 78 Jim Cramer in a latest program on CNBC talked about Union Pacific Corporation (NYSE:UNP). Here is what he said: 'Okay, people feel that this stock is right in the crosshairs of the tariffs, that they're going to hurt, get hurt more than anybody else. I want to buy the stock right here at 214. I would start buying. The next buy would be at 204, then maybe get some at 194. Build a good basis, start with small and build up in a pyramid. That's what I feel about Union Pacific Corp (NYSE:UNP). I'm looking at it myself. I like this level.' Diamond Hill Large Cap Concentrated Fund stated the following regarding Union Pacific Corporation (NYSE:UNP) in its Q4 2024 investor letter: 'Other bottom Q4 contributors included Extra Space Storage, Texas Instruments and Union Pacific Corporation (NYSE:UNP). Railroad operator Union Pacific saw muted volume growth in the quarter. Further, investors are contemplating the possibility higher tariffs on goods coming from Mexico could weigh on Union Pacific's business, which handles a large share of border crossings.' Overall, UNP ranks 6th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of UNP, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
UNP Q1 Earnings Call: Volumes Grow, Pricing Power Holds Amid Market Uncertainty
Freight transportation company Union Pacific (NYSE:UNP) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $6.03 billion. Its non-GAAP profit of $2.70 per share was 1.1% below analysts' consensus estimates. Is now the time to buy UNP? Find out in our full research report (it's free). Revenue: $6.03 billion vs analyst estimates of $6.07 billion (flat year on year, 0.8% miss) Adjusted EPS: $2.70 vs analyst expectations of $2.73 (1.1% miss) Adjusted EBITDA: $2.98 billion vs analyst estimates of $3.05 billion (49.5% margin, 2.2% miss) Operating Margin: 39.3%, in line with the same quarter last year Free Cash Flow Margin: 7.8%, similar to the same quarter last year Sales Volumes rose 6.6% year on year (-0.5% in the same quarter last year) Market Capitalization: $129.2 billion Union Pacific's first quarter performance reflected meaningful operational improvements and volume growth despite missing Wall Street's revenue and non-GAAP earnings expectations. Management attributed the quarter's flat top-line result to higher freight volumes and strong core pricing, partially offset by unfavorable business mix and lower fuel surcharge revenue. Executive Vice President Kenny Rocker highlighted that intermodal and bulk segments led volume gains, while CFO Jennifer Hamann noted productivity initiatives and cost management helped maintain margins even as external headwinds persisted. Looking ahead, Union Pacific's leadership signaled ongoing caution due to tariff uncertainty, volatile fuel prices, and shifting customer demand patterns. CEO Jim Vena stated, 'There's a lot of things—tariffs, economy, consumer behavior, interest rates—that are up in the air.' Management reiterated commitment to its three-year growth and margin targets but acknowledged the need for agility and scenario planning as conditions evolve. The company expects to adjust hiring, capital allocation, and operational levers based on how these external factors develop through the remainder of the year. Union Pacific's management pointed to a mix of operational gains, pricing strength, and external pressures as the main themes of the quarter. Despite flat revenues, leadership emphasized record service and productivity metrics. Volume Growth Led by Intermodal: Management cited a 13% increase in premium segment volume, particularly in intermodal shipments linked to West Coast imports, as a key driver, though this mix carried lower average revenue per car. Strong Core Pricing Execution: Core pricing reached its highest quarterly level in a decade, supported by improved service reliability and proactive customer engagement, which management believes will be sustainable. Business Mix and Fuel Headwinds: A shift toward lower-margin business lines, such as intermodal and coal, along with reduced fuel surcharge revenue, offset gains from higher volumes and pricing, holding margins flat. Cost Discipline and Productivity Initiatives: Workforce productivity and asset utilization improved, with management highlighting technology investments—like energy management systems and adaptive planning tools—that enabled operations to scale efficiently with volume. Tariff and Trade Policy Uncertainty: Executives noted that ongoing changes in tariffs, especially related to China and Mexico, have injected significant uncertainty into demand forecasting, prompting close coordination with customers and flexible network planning. Management's outlook for the remainder of the year centers on maintaining operational agility and disciplined pricing, while preparing for potential shifts in trade policy and consumer demand. Tariff and Policy Volatility: The company is monitoring evolving trade policies and tariffs, particularly those affecting international intermodal and automotive shipments, as these could materially impact volume and network flows. Pricing and Service Reliability: Leadership believes continued pricing discipline, underpinned by service consistency and network investments, will be critical for sustaining margins if volumes become more volatile. Cost Flexibility and Technology: Management emphasized its ability to flex costs, adjust workforce levels, and deploy digital tools to maintain operating leverage in both growth and contraction scenarios, noting that hiring and capital spending will be calibrated to demand trends. Chris Wetherbee (Wells Fargo): Asked for clarity on how management frames its earnings and margin outlook amid heightened uncertainty. CEO Jim Vena reiterated commitment to three-year targets but cautioned that 'everything is so fluid' and the company is prepared to react quickly to changes. Fadi Chamoun (BMO Capital Markets): Inquired about the sustainability and drivers of strong core pricing. CFO Jennifer Hamann pointed to contract repricing opportunities and catch-up from prior inflation, while Kenny Rocker emphasized pricing to service quality. Brandon Oglenski (Barclays): Questioned the impact of rising tariffs and potential demand shocks on West Coast intermodal flows. Management detailed frequent customer engagement and highlighted adaptive planning tools to scale resources up or down rapidly. Scott Group (Wolfe Research): Probed why robust volume and pricing did not translate into higher margins. Leadership attributed this to negative business mix and fuel headwinds, with expectations that mix could improve in the back half of the year. Jonathan Chappell (Evercore ISI): Asked about resource planning for possible intermodal volatility. Operations EVP Eric Gehringer described maintaining a "buffer of resources" and using network technology to adjust train capacity and routing as demand shifts. In the coming quarters, our analysts will be tracking (1) the trajectory of intermodal and automotive volumes as trade policies and tariffs evolve, (2) the company's ability to sustain pricing power and margin discipline even as business mix fluctuates, and (3) the operational impact of ongoing technology and productivity initiatives. The company's response to changes in customer demand and external macroeconomic pressures will remain key signposts for execution. Union Pacific currently trades at a forward P/E ratio of 18×. At this valuation, is it a buy or sell post earnings? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
