Seeking Alpha
Value, registered investment advisor, growth at reasonable price, long only
Profile| Send Message|
( followers)  

Here we sit in the year 2013 and guess what? A railroad stock is one of the leading stocks in the entire market.


(Click to enlarge)

Data from Best Stocks Now App

Union Pacific Corp. (NYSE:UNP) is a $71.7 billion large cap stock company headquartered in Omaha, Nebraska, and it's a stock that I own in my conservative growth accounts.

Now you may be asking: isn't this a stock of yesteryear, a stodgy old stock? Yes, but it doesn't have the performance of the majority of stocks of yesteryear. It continues to retain its Best Stocks Now-like performance.


(Click to enlarge)

Data from Best Stocks Now App

Over the past ten years, UNP has delivered a 19.8% return per year to investors. The great Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B), by contrast, has delivered 8.6% per year over the past ten years.

Over the past five years, UNP has delivered an average of 17.9% per year, while the BRK.B has dealt investors 6.3%. Over the past three years, it's delivered almost 32% percent per year to shareholders as compared to BRK.B's 13.5%.

On the other hand, boring old UNP continues to chug along delivering 20 to 30% per year. And in the last 12 months, UNP is up another 40.1%, earning it a momentum grade of "A-."


(Click to enlarge)

Data from Best Stocks Now App

Now many say investing is all about the future, so let's take a look at UNP's valuation. While there are no guarantees whatsoever that it will continue to perform well, UNP clearly has a proven track record (pardon the pun).

And looking to the future, we see that UNP is trading at just 14.1 times forward earnings. It is trading at a discount to the market probably because it's not a very glamorous, "cool" stock. UNP is expected to grow by 14.2% per year over the next five years. It is trading at right around its growth rate, so it's not expensive with a PEG ratio of 0.99.


(Click to enlarge)

The final piece in analyzing UNP is to take a look at its stock chart, and here I see a stock that continues to hit new highs. Out of the almost 3,400 stocks that I track on a daily basis, UNP is ranked number 84 overall and it earns an overall grade of "A." And you thought that the only good thing in Omaha was the wizard himself.


(Click to enlarge)

Data from Best Stocks Now App

Source: This Omaha Stock Blows Away Berkshire Hathaway