Union Pacific Corp

Union Pacific operates a 23,000-mile freight rail network spanning the western two-thirds of the United States. The company hauls agricultural products, industrial chemicals, automobiles, coal, and intermodal containers between major ports like Los Angeles and inland distribution hubs. Its business model relies on long-term contracts with shippers, fuel surcharges, and pricing power from its dominant regional network. Union Pacific connects Mexico's manufacturing zones to Canadian markets, making it a critical infrastructure provider for North American trade.

Union Pacific offers exposure to industrial production and trade volumes with relatively stable cash flows from contracted freight. The company has returned capital through dividends and buybacks, though rail volumes fluctuate with economic cycles. Risks include regulatory constraints on pricing, capital-intensive track maintenance, and competition from trucking on shorter routes. The stock typically trades at a premium to book value reflecting its irreplaceable network assets.

Union Pacific faces direct competition from BNSF Railway (owned by Berkshire Hathaway) across similar western routes, particularly for coal and agricultural freight. Kansas City Southern competes on north-south trade lanes between the U.S. and Mexico. Canadian Pacific and Norfolk Southern compete in adjacent regions where rail networks overlap or connect.

Union Pacific has increased its dividend consecutively for over 15 years, establishing itself as a dividend growth stock among industrials. The company targets a payout ratio allowing room for capital spending on track maintenance and efficiency projects while returning excess cash to shareholders. Dividend growth has historically tracked earnings per share growth.

UNP last closed at $241.33, up 0.69% in the most recent trading session. Over the past 52 weeks, the stock has traded between a low of $204.66 and a high of $268.14. The current price represents 58% of its 52-week range, which helps investors gauge where the stock sits relative to its recent trading history.

Among 31 analysts covering UNP, the consensus rating is Buy — 19 rate it a buy, 12 hold, and 0 sell. The average price target sits at $407.95, implying 69% upside from the current price. Keep in mind that analyst targets reflect 12-month expectations and can shift quickly after earnings reports or major company events.

Union Pacific Corp generated $24.28B in revenue during fiscal year 2026, with $7.07B reaching the bottom line as net income. The net profit margin of 29.1% is strong by most industry standards.

UNP trades at a P/E ratio of 19.43 on trailing earnings of $11.98 per share. That's roughly in line with the broader market average of ~20-25x. Comparing this multiple against Road & Rail sector peers gives better context than the broad market alone, since P/E norms vary significantly across industries.

Performance varies across timeframes, reflecting shifting market conditions. Returns by timeframe: +3.38% (3M), +2.18% (6M), +1.39% (1Y), +4.06% (YTD). Comparing these figures against the S&P 500 and sector benchmarks helps determine whether UNP is outperforming or lagging the broader market.