Still Avoiding Union Pacific
Summary
- Despite impressive financial performance, Union Pacific remains a poor investment compared to risk-free alternatives like the 10-Year Treasury Note.
- The stock trades at near decade-high valuations, with a negative risk premium and high recession probability, making it too risky.
- Market expectations for Union Pacific's growth are overly optimistic, with a predicted 6% growth rate deemed excessive and risky.
- Given the current valuation and economic conditions, it's prudent to avoid Union Pacific and seek safer investments like Treasury Notes.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.
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