Union Pacific: A Closer Look At Opportunities And Headwinds
Summary
- Union Pacific lowered its operating efficiency estimates as it continues to struggle with supply chain problems and inflationary headwinds.
- Like its peers, the railroad needs to improve operations to service demand.
- The company continues to be in a good spot to improve its earnings despite economic headwinds.
- Even if economic indicators continue to deteriorate, UNP investors should add on weakness to benefit from its ability to reward shareholders with high dividend growth and buybacks.
Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.
As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of UNP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
This article serves the sole purpose of adding value to the research process. Always take care of your own risk management and asset allocation.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.