Is Union Pacific Stock Underperforming the S&P 500?
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With a market cap of $132.4 billion, Union Pacific Corporation (UNP) operates in the railroad business in the United States through its subsidiary, Union Pacific Railroad Company. The Omaha, Nebraska-based company offers transportation services for grain and grain products, fertilizers, food, and refrigerated products, as well as coal and renewable energy.
Companies worth $10 billion or more are generally described as "large-cap stocks." UNP fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the railroads industry. UNP benefits from serving transportation services across 23 states in the United States and being the largest railroad in North America.
The railroad giant's stock dropped nearly 14.1% from its 52-week high of $258.07 touched on Sept. 4 last year. UNP’s stock has declined 10.2% in the past three months, lagging behind the S&P 500 Index’s ($SPX) marginal decrease.
UNP stock has decreased 2.8% on a YTD basis, whereas SPX is up marginally. Moreover, shares of UNP have tanked 3.2% over the past 52 weeks, underperforming the SPX's 11.4% rise over the same time frame.
To confirm its recent downturn, UNP has been trading below its 50-day and 200-day moving averages since early March, with some fluctuations.
On Apr. 24, UNP’s shares plunged 2% as the company delivered weaker-than-expected Q1 2025 results. The company’s total operating revenue of approximately $6 billion declined marginally from the year-ago quarter and missed the consensus estimates, mainly caused by reduced fuel surcharge revenue and lower other revenue. Its operating income also declined marginally year-over-year to $2.4 billion.
However, UNP’s adjusted earnings for the quarter rose marginally year-over-year to $2.70 per share but failed to meet the consensus estimates by 1.1%.
In the railroad arena, top rival CSX Corporation (CSX) has performed better than UNP, declining 2.1% on a YTD basis. However, CSX stock has fallen 5.7% over the past year, a steeper decline than UNP.
Among the 26 analysts covering UNP stock, the consensus rating is a “Moderate Buy.” Its mean price target of $248.73 suggests a 12.2% upside potential from current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.