Union Pacific (UNP, $104.86): Should You Catch This Train?

Union Pacific (UNP, $104.86) is a railroad freight transportation company serving much of North America.

UNP had sales of $17 billion in 2010, and net income of $2.8 billion. Projected consensus earnings (EPS) growth is 18.8%, 20.2% and 14.7% for fiscal years 2011 through 2013.  The PE is 16.0 based on projected 2011 EPS  of $6.57 and the dividend yield is 1.81%.

UNP’s stock has recently been reaching all-time highs.  During the last decade, the share price climbed to about $85, dropped to about $35 during the 2008 Financial Meltdown, and then began its recovery. The stock has been climbing steadily since it passed the $85 mark a year ago.

Who would find this stock attractive to own? Well, the trading range is not wide enough to entice traders. But the earnings, PE and dividend are attractive enough to catch the eye of growth investors, value investors, and growth & income investors.  There is no reason not to buy at the current price. For those investors looking for a slightly better price, you might be able to get the stock at $102 in the very near-term.

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