Stocks of Union Pacific Corporation (NYSE:UNP) Flying High- Credit Suisse Increased the Target Price to $119, Thestreet Gave A Score of A+

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By Thomas Copeland on August 19, 2014 Company

The stocks of Union Pacific Corporation (NYSE:UNP) closed at $103.83 on the last trading day, August 18, 2014, after Credit Suisse, a research and equity firm, updated the ratings of Pacific Corporation (NYSE:UNP) to ‘outperform’ and increased the price target of the company’s stocks to $119. The equity firm increased the ratings of Pacific Corporation (NYSE:UNP) considering the positive effects of higher EBIT.

Moreover, the ratings team of TheStreet gave the stocks of Pacific Corporation (NYSE:UNP) a ‘buy’ rating with a score of A+. The ratings team further said that Union Pacific Corporation (NYSE:UNP) had a lot of positive performance indicators, which were taken into account while rating the company’s stocks. The team further elaborated on the positive indicators by saying that the company’s EPS and growth in revenue is remarkable. Moreover, the ROE (returns on equity) of the company is also very impressive. The company’s position is solid in the market with increasing profit margins. However, the team said that Union Pacific Corporation’s (NYSE:UNP) cash flow for operation is weak.

Some Highlights from the Report:

The revenue growth of Union Pacific Corporation (NYSE:UNP) surpassed the industry average of 8.8 percent. Over a period of one year, the revenues of company increased by 10 percent. This increase in revenues seems to have trickled down to the EPS of the company.
Moreover, the shares of the company rose 28.29 percent in a matter of one year, as more and more investors have realized the impressive EPS offered by the company. Although the stocks of Union Pacific Corporation (NYSE:UNP) have increased significantly over a period of one year, analysts are still of the opinion that the prices of this stock will rise even further.
During the most recent quarter, the EPS of the company increased by 20.7 percent if compared with the figures of the same quarter a year back. Moreover, the company has been reporting positive EPS for the last 2 years; and market analysts are of the view that the earnings will continue to rise. Last year, Union Pacific Corporation (NYSE:UNP) reported an EPS of $4.72; and this year, analysts are expecting an EPS of $5.55.
Coming to the ROE (returns on equity), the figures have gone up slightly when compared with the numbers of the same quarter a year back, which can be taken as a positive indicator. The ROE of Union Pacific Corporation (NYSE:UNP) surpassed the average of both the road and rail industry and the Standard & Poor’s 500.
Union Pacific Corporation (NYSE:UNP) has a gross profit margin of 44.32 percent. Moreover, the net profit margin is currently at 21.46 percent; higher than the industry average.

Coming to the stock prices of Union Pacific Corporation (NYSE:UNP), the company, on the last trading day, started its stocks at a price of $102.74 and closed at an increased price of $103.79. The company has a market capitalization of $91.53 billion with a price to earnings ratio of 20.23. As far as the dividend yield of company’s stocks is concerned, the numbers are reported to be around 1.93 percent.