Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. Union Pacific Corporation was founded in 1862 and is headquartered in Omaha, Nebraska.

Union Pacific Corporation демонстрирует сильную финансовую позицию в ряде ключевых метрик, таких как ROE и ROA, которые значительно превышают медианные значения по отрасли, что указывает на эффективное использование капитала и активов. Высокие показатели маржи прибыли также свидетельствуют о способности компании генерировать прибыль, что является положительным фактором для ее оценки. Однако высокий уровень P/E, P/B и P/S в сравнении с отраслевыми медианами может указывать на переоцененность акций. Долговая нагрузка также вызывает опасения, так как коэффициент долга к капиталу значительно выше медианы, что может увеличивать финансовые риски. Дивидендная доходность ниже отраслевых стандартов, что может негативно сказаться на привлекательности акций для доходных инвесторов. Тем не менее, рост выручки и чистой прибыли по годам подтверждает устойчивость бизнеса. В целом, несмотря на некоторые негативные аспекты, сильные финансовые показатели и высокие маржи позволяют сохранить позитивный взгляд на компанию в долгосрочной перспективе.

Union Pacific Corporation

Key Points
The last few year's of Warren Buffett's tenure as Berkshire Hathaway CEO saw him stockpiling cash.
New CEO Greg Abel thinks the market is providing one of the best opportunities in at least 21 months.
Berkshire's core operations continue to perform well, with potential improvements cancelling out headwinds.
Warren Buffett sat at the helm of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) for over 60 years before turning the reins over to Greg Abel at the start of 2026. Abel indicated that not much will change at the company under his leadership in his first letter to shareholders. Still, Abel will be a very different CEO than Buffett, as he's more versed in business operations than in investment decisions.
The last few years of Buffett's tenure at Berkshire were marked by his decision to sell significant stakes in some of the company's biggest marketable equity positions, adding to a growing cash pile. For a while, Buffett used some of that cash to buy back shares of Berkshire from the open market under the company's share repurchase program. But even that stopped in June 2024 after 24 straight quarters of share repurchases. It's been 21 months since Buffett's final share repurchase for Berkshire Hathaway.
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But Abel just put an end to that streak. An SEC filing revealed that the company has resumed share repurchases. In fact, Abel believes the stock presents such good value right now that he's put his own money on the line as well.
One of the best opportunities in 21 months
Shares of Berkshire Hathaway experienced a notable downtrend in value last summer following Buffett's announcement that he'd be stepping down as CEO at the end of 2025. That led to significant multiple compression, pushing Berkshire's price-to-book ratio to about 1.5 at the bottom of the sell-off. That's a multiple the stock had rarely seen since Buffett's last share repurchase, but it apparently wasn't cheap enough for him to pull the trigger on it.
Shares dipped near the start of 2026 as well, pushing the stock's price-to-book ratio to a low of 1.42, well below the multiple Buffett paid in May 2024. That said, that valuation is based on data compiled in Berkshire's 2025 annual report, and the value may not have been clear at the start of the year.
Berkshire released its full-year results at the end of February, showing a continued increase in its cash pile, reaching $373 billion. Its equity portfolio was worth just under $300 billion at the end of the year. It's worth about $307 billion today. The two account for the vast majority of Berkshire's book value.
Abel took the opportunity to start buying back shares on March 4. That follows a decline in shares due to disappointing fourth-quarter operating results and the market's reaction to the Iran war. Considering Berkshire's core operations are relatively insulated from foreign affairs, a decline in Berkshire shares could be an opportunity. That said, Berkshire's equity portfolio is full of many companies with large international operations.
Berkshire stock traded for a price-to-book ratio of about 1.46 on March 4. That ratio could be lower if adjusted for the real-time value of Berkshire's stock portfolio and cash pile. As mentioned, the portfolio's value at the end of 2025 has increased since the start of the year, and Berkshire continues to produce positive cash flow from operations. As a result, the current valuation presents a compelling opportunity to buy Berkshire shares based solely on the company's book value and historical trading.
Is it actually a buying opportunity?
Just because a stock trades at a good value doesn't mean it's a great buy. While the majority of Berkshire's book value stems from its liquid assets, investors should also consider the company's operating results to determine whether it deserves a higher or lower multiple these days than in the recent past.
In the company's core insurance business, the California wildfires at the start of 2025 were cancelled out by a quiet hurricane season on the Atlantic coast. No hurricanes made landfall this year, Abel pointed out. As a result, 2025 showed solid insurance results despite some lumpiness. Premiums written at GEICO, notably, continued to climb, and losses came in around the same percentage as last year.
Berkshire's railroad business, Burlington Northern Santa Fe (BNSF), showed improvements in operating margin as it decreased the time shipments spent idle at terminals. But with a 34.5% operating margin in 2025, up from 32% in 2024, the railroad still operates with worse margins than its biggest competitors. Union Pacific, for example, had an operating margin of 40% last year.
The energy business produced results in line with the prior year; however, management warned that recent legislation and regulatory changes, including the "big, beautiful bill," could negatively impact its results going forward. The catch-all category for the company's owned-and-operated businesses, "manufacturing, service, and retailing," saw a slight increase in its revenue and improved operating margin.
So the results were a bit mixed last year. But investors should consider whether Berkshire's operations can improve overall going forward.
To that end, its insurance business benefits from the ability to underwrite more risk than just about anyone else. Its railroad business is showing marked improvement. The energy business is seeing growing demand despite regulatory challenges. As a result, it may be a great time to start buying the stock.
Abel certainly thinks so. Not only did he put some of Berkshire's cash to work buying shares, but he also bought $15 million worth of the stock for his personal trust. Berkshire still looks like a great company, and it's trading at a fair price.
Should you buy stock in Berkshire Hathaway right now?
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Adam Levy has positions in Union Pacific. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

New Berkshire Hathaway CEO Greg Abel Just Broke This 21-Month Streak Started by Warren Buffett

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Industrial Select Sector SPDR Fund (Symbol: XLI) where we have detected an approximate $696.8 million dollar outflow -- that's a 2.3% decrease week over week (from 179,576,000 to 175,476,000). Among the largest underlying components of XLI, in trading today Union Pacific Corp (Symbol: UNP) is off about 2.2%, Eaton Corp plc (Symbol: ETN) is down about 1.9%, and Lockheed Martin Corp (Symbol: LMT) is lower by about 0.1%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $112.75 per share, with $179.305 as the 52 week high point — that compares with a last trade of $166.73. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Top Ten Hedge Funds Holding SGDJ
ALEX Stock Predictions
RSSL Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Outflows: XLI, UNP, ETN, LMT

Fintel reports that on March 6, 2026, Baird upgraded their outlook for Union Pacific (NYSE:UNP) from Neutral to Outperform.
Analyst Price Forecast Suggests 6.55% Upside
As of February 25, 2026, the average one-year price target for Union Pacific is $270.70/share. The forecasts range from a low of $218.60 to a high of $309.75. The average price target represents an increase of 6.55% from its latest reported closing price of $254.06 / share.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Union Pacific is 26,485MM, an increase of 8.06%. The projected annual non-GAAP EPS is 14.41.
What is the Fund Sentiment?
There are 3,044 funds or institutions reporting positions in Union Pacific. This is an decrease of 714 owner(s) or 19.00% in the last quarter. Average portfolio weight of all funds dedicated to UNP is 0.39%, an increase of 14.41%. Total shares owned by institutions decreased in the last three months by 6.32% to 531,915K shares. The put/call ratio of UNP is 0.49, indicating a bullish outlook.
What are Other Shareholders Doing?
Capital World Investors holds 20,136K shares representing 3.39% ownership of the company. In its prior filing, the firm reported owning 10,481K shares , representing an increase of 47.95%. The firm increased its portfolio allocation in UNP by 87.19% over the last quarter.
Geode Capital Management holds 15,361K shares representing 2.59% ownership of the company. In its prior filing, the firm reported owning 15,064K shares , representing an increase of 1.93%. The firm decreased its portfolio allocation in UNP by 48.51% over the last quarter.
Bank Of America holds 12,378K shares representing 2.09% ownership of the company. In its prior filing, the firm reported owning 11,988K shares , representing an increase of 3.16%. The firm increased its portfolio allocation in UNP by 3.20% over the last quarter.
Jpmorgan Chase holds 11,458K shares representing 1.93% ownership of the company. In its prior filing, the firm reported owning 10,861K shares , representing an increase of 5.21%. The firm decreased its portfolio allocation in UNP by 88.16% over the last quarter.
Capital Research Global Investors holds 10,981K shares representing 1.85% ownership of the company. In its prior filing, the firm reported owning 8,713K shares , representing an increase of 20.65%. The firm increased its portfolio allocation in UNP by 21.34% over the last quarter.
Fintel is one of the most comprehensive investing research platforms available to individual investors, traders, financial advisors, and small hedge funds.
Our data covers the world, and includes fundamentals, analyst reports, ownership data and fund sentiment, options sentiment, insider trading, options flow, unusual options trades, and much more. Additionally, our exclusive stock picks are powered by advanced, backtested quantitative models for improved profits.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Baird Upgrades Union Pacific (UNP)

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the JPMorgan US Quality Factor ETF (Symbol: JQUA) where we have detected an approximate $151.5 million dollar outflow -- that's a 2.0% decrease week over week (from 114,650,000 to 112,300,000). Among the largest underlying components of JQUA, in trading today Union Pacific Corp (Symbol: UNP) is down about 0.8%, Lockheed Martin Corp (Symbol: LMT) is up about 1.2%, and Blackrock Inc (Symbol: BLK) is lower by about 4.3%. For a complete list of holdings, visit the JQUA Holdings page » The chart below shows the one year price performance of JQUA, versus its 200 day moving average:
Looking at the chart above, JQUA's low point in its 52 week range is $49.2541 per share, with $64.90 as the 52 week high point — that compares with a last trade of $64.04. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
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Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
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IYM market cap history
MNMD Stock Predictions
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Outflow Detected - JQUA, UNP, LMT, BLK

(0:20) - Finding The New FANG stocks
(6:30) - Tracey’s Top Stock Picks To Keep On Your Watchlist
(24:10) - Episode Roundup: UNP, CHRW, NTR, LEA, XOM
Welcome to Episode #476 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
There’s a new sheriff on Wall Street and it isn’t technology.
HALO investing has burst onto the scene. No, those letters are not company names. It means “Hard Assets, Low Obsolescence.”
H-A-L-O.
What is HALO Investing?
It’s an investment strategy used to avoid investing in companies that might see AI disruption. Investors want to buy companies that make or own hard assets and where AI cannot replace it.
The “hard assets” may be land, or a railroad. It may be a gold mine or an oil rig.
Low Obsolescence is a little more difficult to define. But if the AI can’t replace it, then it’s in the “low” category.
For example, Union Pacific was incorporated in 1862 and has survived depressions, recessions, world wars, and pandemics. AI may make a railroad more efficient and employees more productive, but it will never replace the train or the rails.
You could say UNP fits into the category of “low obsolescence.”
5 HALO Stocks for 2026
1. Union Pacific Corp. (UNP)
Union Pacific is an American railroad which was incorporated by Abraham Lincoln in 1862. It’s no longer a big growth stock but earnings are expected to rise 6.9% in 2026 and 7.5% in 2027.
Shares of Union Pacific are up 15% year-to-date and are near 5-year highs. Union Pacific has a forward price-to-earnings (P/E) ratio of 21.2. A P/E ratio under 15 is considered a value. It also pays a dividend, yielding 2.1%.
Should a railroad like Union Pacific be on your HALO short list?
2. CH Robinson Worldwide, Inc. (CHRW)
CH Robinson Worldwide is a logistics and trucking company. The freight industry has seen tough times in the last few years, but CH Robinson’s earnings are expected to jump 15.9% in both 2026 and 2027.
Shares of CH Robinson rose 76.2% over the last year to 5-year highs. It pays a dividend, currently yielding 1.4%. CH Robinson isn’t cheap. It has a forward P/E of 30.
Insiders are buying at CH Robinson. Should HALO investors buy too?
3. Nutrien Ltd. (NTR)
Nutrien is a fertilizer manufacturer and agribusiness company headquartered in Canada. Nothing says “hard assets” like a commodity like fertilizers.
Earnings estimates have been revised higher in the last week for 2026. Nutrien is expected to grow earnings by 5.3%. Shares of Nutrien have been on the move higher, however. Over the last year, Nutrien was up 39.4%, to a 3-year high.
Nutrien is a value stock, with a forward P/E of 15. It pays a dividend, currently yielding 3%.
Fertilizers aren’t yet back in favor. Should investors put a fertilizer company like Nutrien on their HALO short list anyway?
4. Lear Corp. (LEA)
Lear Corp. makes seating and electrical systems for the automotive industry. After two tough years, earnings are expected to rebound by 11.2% in 2026 and another 17.8% in 2027.
Shares of Lear are already on the move higher. Lear is up 13.1% year-to-date and has jumped 38.2% over the last year.
Lear is dirt cheap. It has a forward P/E of just 9.3. A P/E ratio under 10 usually indicates a company is a deep value. Lear also pays a dividend, currently yielding 2.3%.
Should auto industry companies like Lear be on your 2026 HALO list?
5. Exxon Mobil Corp. (XOM)
Exxon Mobil Corp. is one of the largest integrated oil companies in the United States. Shares of Exxon Mobil are up 21.7% year-to-date even though the earnings outlook is terrible.
Exxon Mobil’s earnings declined in 2023, 2024, and 2025 and are expected to decline again in 2026 by 3.6%. But analysts aren’t completely gloomy. In 2027, earnings are forecast to jump 21.8%.
Exxon Mobil is trading at new all-time highs even as earnings decline which means it’s not a cheap stock. It’s forward P/E is 22.4 with a PEG ratio of 15.6. A PEG measure P/E divided by growth. A low PEG ratio symbolizes a company may have growth but also be a value. A PEG above 10 is considered very high.
Exxon Mobil is shareholder friendly. It pays a dividend currently yielding 2.7%.
Should HALO investors put an oil company like Exxon Mobil on their 2026 short list?
What Else Should You Know About HALO Investing?
Tune into this week’s podcast to find out.
[In full disclosure, Tracey owns CHRW in Zacks Insider Trader portfolio.]
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Union Pacific Corporation (UNP) : Free Stock Analysis Report
Lear Corporation (LEA) : Free Stock Analysis Report
Nutrien Ltd. (NTR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

HALO Stocks are the Must-Own Stocks of 2026

Looking at the universe of stocks we cover at Dividend Channel, on 2/27/26, Hubbell Inc. (Symbol: HUBB), Union Pacific Corp (Symbol: UNP), and Watts Water Technologies Inc (Symbol: WTS) will all trade ex-dividend for their respective upcoming dividends. Hubbell Inc. will pay its quarterly dividend of $1.42 on 3/16/26, Union Pacific Corp will pay its quarterly dividend of $1.38 on 3/31/26, and Watts Water Technologies Inc will pay its quarterly dividend of $0.52 on 3/13/26. As a percentage of HUBB's recent stock price of $526.75, this dividend works out to approximately 0.27%, so look for shares of Hubbell Inc. to trade 0.27% lower — all else being equal — when HUBB shares open for trading on 2/27/26. Similarly, investors should look for UNP to open 0.52% lower in price and for WTS to open 0.16% lower, all else being equal.
Below are dividend history charts for HUBB, UNP, and WTS, showing historical dividends prior to the most recent ones declared.
Hubbell Inc. (Symbol: HUBB):
Union Pacific Corp (Symbol: UNP):
Watts Water Technologies Inc (Symbol: WTS):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 1.08% for Hubbell Inc., 2.07% for Union Pacific Corp, and 0.63% for Watts Water Technologies Inc.
In Wednesday trading, Hubbell Inc. shares are currently up about 1.9%, Union Pacific Corp shares are up about 1.1%, and Watts Water Technologies Inc shares are up about 2.1% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Hubbell, Union Pacific and Watts Water Technologies

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Industrial Select Sector SPDR ETF (Symbol: XLI) where we have detected an approximate $339.6 million dollar inflow -- that's a 1.1% increase week over week in outstanding units (from 172,176,000 to 174,126,000). Among the largest underlying components of XLI, in trading today GE Vernova Inc (Symbol: GEV) is up about 0.8%, Boeing Co. (Symbol: BA) is down about 1.1%, and Union Pacific Corp (Symbol: UNP) is higher by about 1%. For a complete list of holdings, visit the XLI Holdings page » The chart below shows the one year price performance of XLI, versus its 200 day moving average:
Looking at the chart above, XLI's low point in its 52 week range is $112.75 per share, with $177.755 as the 52 week high point — that compares with a last trade of $173.94. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
REITs Dividend Stocks
IGMS Insider Buying
TWIN Split History
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

XLI, GEV, BA, UNP: ETF Inflow Alert

For Immediate Release
Chicago, IL – February 17, 2026 – Today, Zacks Equity Research discusses Union Pacific Corp. UNP and Canadian Pacific Kansas City Ltd. CP.
Industry: Railroad
Link: https://www.zacks.com/commentary/2869145/2-railroad-stocks-to-watch-from-the-challenging-industry
The Zacks Transportation - Rail industry faces challenges, ranging from tariff-induced economic uncertainties, inflationary pressures and resultant high interest rates to concerns pertaining to supply-chain disruptions.
Despite the challenges surrounding the industry, Union Pacific Corp. and Canadian Pacific Kansas City Ltd. appear better placed to tide over the challenges. Declining fuel costs represent a tailwind as far as bottom-line growth is concerned.
Industry Description
The Zacks Transportation - Rail industry includes railroad operators transporting freight (such as agricultural products, industrial products, coal, intermodal, automotive, consumer products, metals and minerals), primarily across North America. These companies focus on providing logistics and supply-chain expertise services.
While freight constitutes a significant chunk of revenues, some of these companies also derive a small portion of their top line from other rail-related services, including third-party railcar and locomotive repairs, routine land sales and container sales, among others. A few companies offer service to multiple production and distribution facilities. Besides locomotives, some of these companies own equipment of leased locomotives, railcars, etc.
Factors Deciding the Industry's Outlook
Strong Financial Returns for Shareholders: With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile through dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and confidence in the business. Among the Transportation – Railroad industry players, CSX Corporation announced an 8.3% increase in the quarterly dividend in 2025, and Union Pacific approved a dividend hike of 3%, thereby raising its quarterly cash dividend to $1.38 per share ($5.52 annualized) from $1.34 ($5.36 annualized) in 2025.
Uptick in Oil Priceis a Headwind: The upside in expenses on fuel represents another headwind for the industry. Notably, oil prices surged 8.5% from the beginning of 2026 to date. As fuel expenses represent a key input cost for any transportation player, a rise in oil prices does not bode well for the bottom-line growth of railroad stocks.
Economic Uncertainty Remains: Tariff tensions have led to escalated trade woes across the globe. These tariff-induced economic uncertainties do not bode well for industry participants. With inflation remaining a concern, risks associated with an economic slowdown and geopolitical tensions dampen the prospects of stocks belonging to this industrial cohort. Sluggish economic growth and inflationary woes are likely to make markets more volatile in the coming days. Ongoing economic uncertainty does not bode well for industry players. Tariff-induced economic uncertainties and trade tensions may create uncertainty for investors interested in the industry.
Zacks Industry Rank Indicates Gloomy Prospects
The Zacks Transportation Railroad industry, housed within the broader Zacks Transportation sector, currently carries a Zacks Industry Rank #196. This rank places it in the bottom 19% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The sell-side analysts covering the companies in this industry have been decreasing their estimates. Over the past year, the industry’s consensus earnings estimate for the current year has decreased 7.5%.
Before we present a few stocks that investors can retain, given their growth prospects, let’s take a look at the industry’s recent stock market performance and current valuation.
Industry Lags S&P 500, Outperforms Sector
The Zacks Transportation - Rail industry has underperformed the Zacks S&P 500 Composite index while outperformed the broader sector over the past year.
Over this period, the industry has gained 10.4% compared with the S&P 500 Index’s northward movement of 14.1%. The broader sector has surged 9.7%.
Industry's Current Valuation
Based on the trailing 12-month price-to-book (P/B), a commonly used multiple for valuing railroad stocks, the industry is currently trading at 8.65X compared with the S&P 500’s 8.50X. It is above the sector’s P/B ratio of 4.24X.
Over the past five years, the industry has traded as high as 10.92X, as low as 5.40X and at the median of 7.05X.
2 Stocks to Keep an Eye On
We are presenting two Zacks Rank #3 (Hold) stocks that are well-positioned to grow in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Union Pacific: Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States.
Relatively stable ecommerce demand, cost-cutting efforts to boost the bottom line and consistent initiatives to reward its shareholders through dividend payments and share repurchases bode well for UNP’s prospects. Further, UNP has a stellar track record with respect to earnings surprises. The company surpassed the Zacks Consensus Estimate in two of the past four quarters (missed the mark in the remaining two quarters), with an average beat of 1.34%.
Canadian Pacific: Headquartered in Calgary, Canada, Canadian Pacific manages a transcontinental freight railway in Canada, the United States and Mexico.
We are encouraged by the Canadian Pacific’s decision to pay dividends consistently. Such a move instills investors’ confidence and positively impacts the company’s bottom line. Canadian Pacific has an encouraging track record with respect to earnings surprise. The company's earnings missed the Zacks Consensus Estimate in three of the past four quarters (met the mark in the remaining quarter), delivering an average miss of 1.62%.
Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share. The company expects 2026 revenue ton miles to increase in the mid-single digits from the 2025 actuals.
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Zacks Industry Outlook Highlights Union Pacific and Canadian Pacific Kansas

The Zacks Transportation - Rail industry faces challenges, ranging from tariff-induced economic uncertainties, inflationary pressures and resultant high interest rates to concerns pertaining to supply-chain disruptions.
Despite the challenges surrounding the industry, Union Pacific Corporation UNP and Canadian Pacific Kansas City Limited CP appear better placed to tide over the challenges. Declining fuel costs represent a tailwind as far as bottom-line growth is concerned.
Industry Description
The Zacks Transportation - Rail industry includes railroad operators transporting freight (such as agricultural products, industrial products, coal, intermodal, automotive, consumer products, metals and minerals), primarily across North America. These companies focus on providing logistics and supply-chain expertise services. While freight constitutes a significant chunk of revenues, some of these companies also derive a small portion of their top line from other rail-related services, including third-party railcar and locomotive repairs, routine land sales and container sales, among others. A few companies offer service to multiple production and distribution facilities. Besides locomotives, some of these companies own equipment of leased locomotives, railcars, etc.
Factors Deciding the Industry's Outlook
Strong Financial Returns for Shareholders:With economic activities gaining pace from the pandemic lows, more and more companies are allocating their increasing cash pile through dividends and buybacks to pacify long-suffering shareholders. This underlines their financial strength and confidence in the business. Among the Transportation – Railroad industry players, CSX Corporation announced an 8.3% increase in the quarterly dividend in 2025, and Union Pacific approved a dividend hike of 3%, thereby raising its quarterly cash dividend to $1.38 per share ($5.52 annualized) from $1.34 ($5.36 annualized) in 2025.
Uptick in Oil Priceis a Headwind: The upside in expenses on fuel represents another headwind for the industry. Notably, oil prices surged 8.5% from the beginning of 2026 to date. As fuel expenses represent a key input cost for any transportation player, a rise in oil prices does not bode well for the bottom-line growth of railroad stocks.
Economic Uncertainty Remains: Tariff tensions have led to escalated trade woes across the globe. These tariff-induced economic uncertainties do not bode well for industry participants. With inflation remaining a concern, risks associated with an economic slowdown and geopolitical tensions dampen the prospects of stocks belonging to this industrial cohort. Sluggish economic growth and inflationary woes are likely to make markets more volatile in the coming days. Ongoing economic uncertainty does not bode well for industry players. Tariff-induced economic uncertainties and trade tensions may create uncertainty for investors interested in the industry.
Zacks Industry Rank Indicates Gloomy Prospects
The Zacks Transportation Railroad industry, housed within the broader Zacks Transportation sector, currently carries a Zacks Industry Rank #196. This rank places it in the bottom 19% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The sell-side analysts covering the companies in this industry have been decreasing their estimates. Over the past year, the industry’s consensus earnings estimate for the current year has decreased 7.5%.
Before we present a few stocks that investors can retain, given their growth prospects, let’s take a look at the industry’s recent stock market performance and current valuation.
Industry Lags S&P 500, Outperforms Sector
The Zacks Transportation - Rail industry has underperformed the Zacks S&P 500 Composite index while outperformed the broader sector over the past year.
Over this period, the industry has gained 10.4% compared with the S&P 500 Index’s northward movement of 14.1%. The broader sector has surged 9.7%.
One-Year Price Performance
Industry's Current Valuation
Based on the trailing 12-month price-to-book (P/B), a commonly used multiple for valuing railroad stocks, the industry is currently trading at 8.65X compared with the S&P 500’s 8.50X. It is above the sector’s P/B ratio of 4.24X.
Over the past five years, the industry has traded as high as 10.92X, as low as 5.40X and at the median of 7.05X.
2 Stocks to Keep an Eye On
We are presenting two Zacks Rank #3 (Hold) stocks that are well-positioned to grow in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Union Pacific: Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States.
Relatively stable ecommerce demand, cost-cutting efforts to boost the bottom line and consistent initiatives to reward its shareholders through dividend payments and share repurchases bode well for UNP’s prospects. Further, UNP has a stellar track record with respect to earnings surprises. The company surpassed the Zacks Consensus Estimate in two of the past four quarters (missed the mark in the remaining two quarters), with an average beat of 1.34%.
Price and Consensus: UNP
Canadian Pacific: Headquartered in Calgary, Canada, Canadian Pacific manages a transcontinental freight railway in Canada, the United States and Mexico.
We are encouraged by the Canadian Pacific’s decision to pay dividends consistently. Such a move instills investors’ confidence and positively impacts the company’s bottom line. Canadian Pacific has an encouraging track record with respect to earnings surprise. The company's earnings missed the Zacks Consensus Estimate in three of the past four quarters (met the mark in the remaining quarter), delivering an average miss of 1.62%.
Canadian Pacific expects 2026 core adjusted earnings per share to grow in the low double-digits from the 2025 actuals to C$4.61 per share. The company expects 2026 revenue ton miles to increase in the mid-single digits from the 2025 actuals.
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2 Railroad Stocks to Watch From the Challenging Industry

In a shareholder-friendly move, Wabtec Corporation (WAB) board of directors approved a dividend hike of 24%, thereby raising its quarterly cash dividend to 31 cents per share ($1.24 annualized) from 25 cents ($1.00 annualized). The raised dividend will be paid out on March 2, 2026, to shareholders of record at the close of business on Feb. 17. The move reflects WAB’s intention to utilize free cash to enhance its shareholders’ returns.
Wabtec Dividend Yield (TTM)
Notably, Wabtec has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. Continuing the shareholder-friendly approach, WAB rewarded its shareholders in 2022 through a combination of cash dividends ($111 million) and share repurchases ($473 million). During 2023, WAB repurchased shares worth $409 million and paid $123 million in cash dividends. During 2024, WAB repurchased shares worth $1.09 billion and paid $140 million in cash dividends. During the first nine months of 2025, WAB repurchased shares worth $148 million and paid $130 million in the form of dividend payments.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks, like WAB, are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty like the current scenario.
WAB management’s decision to increase its quarterly dividend payout reflects the company’s commitment to boosting shareholder value, apart from underlining confidence in its business. We believe such shareholder-friendly initiatives should boost investor confidence and positively impact thisZacks Rank #2 (Buy) company’s bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apart from the latest dividend hike, Wabtec has also been in the news owing to the latest $1.2B locomotive modernization deal with Union Pacific (UNP), aimed at modernizing the railroad’s AC4400 locomotives. This deal marks the largest locomotive modernization investment in rail industry history, building on Union Pacific’s previous 2022 order, which is slated to be completed in 2026. The upgraded fleet is expected to boost Union Pacific’s operational efficiency and network performance.
This deal was signed in the fourth quarter of 2025 and reflects Union Pacific’s fourth major modernization order from Wabtec since 2018. On completion, UNP will have more than 1,700 modernized locomotives in its fleet. Production is expected to start at Wabtec’s U.S. facilities, with deliveries beginning in 2027.
Given this backdrop, we keenly await Wabtec’s fourth-quarter 2025 earnings result, which is scheduled to be reported on Feb. 11, 2026, before market open.
Shareholder-Friendly Moves by Another Transportation Company in 2026
Wabtec is not the only player from the Zacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs in 2026.
To name a few, on Jan. 26, 2026, Schneider National, Inc.’s (SNDR) board of directors declared a dividend hike of 5%, raising its quarterly cash dividend to 10 cents per share from 9.5 cents. The raised dividend (payable to shareholders of record as of March 13, 2026) is expected to be paid on April 8, 2026. As of Dec. 31, 2025, SNDR had rewarded its shareholders with $67 million in the form of dividend payments.
Additionally, SNDR's board of directors approved a new stock repurchase program, effective immediately, under which up to $150 million of the company’s outstanding Class A common stock, and/or Class B common stock, may be acquired over the next three years. This share buyback program supersedes and replaces the $150 million stock repurchase authorization approved by SNDR's board on Jan.31, 2023 (the “Prior Repurchase Program”), which is scheduled to expire on Jan. 31, 2026, and is substantially similar to the Prior Repurchase Program. SNDR repurchased 4.4 million shares for a total of $110.1 million under the Prior Repurchase Program.
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