UNION PACIFIC CORP Earns High Rating from Multi-Factor Model

Union Pacific Corp has received an 81% rating from a multi-factor model that emphasizes low volatility, strong momentum, and high net payout yields. The report suggests positive investor interest but flags some weaknesses as well.

Date: 09-12-2024

AI Rating: 6

Union Pacific Corp (UNP) is analyzed under a multi-factor investment strategy pioneered by Pim van Vliet, known for focusing on low volatility and high momentum stocks. In this report, UNP has achieved an impressive score of 81%, indicating a strong underlying fundamental position according to the multi-factor model. A score over 80% suggests general investor interest, while anything above 90% indicates robust interest.

Within the report, several specific factors are assessed:

Market Cap: PASS - This indicates that Union Pacific is valued appropriately based on its market capitalization.
Standard Deviation: PASS - The stock demonstrates low volatility, which aligns with the model's goals.
Twelve Minus One Momentum: NEUTRAL - This suggests that recent performance relative to historical performance has neither strongly impressed nor disappointed.
Net Payout Yield: NEUTRAL - The analysis does not highlight a strong perspective on the net payout, suggesting neither a clear advantage nor disadvantage.
Final Rank: FAIL - This indicates that while the company demonstrates strength in various facets, it ultimately falls short in meeting the model's broader requirements.

Overall, although Union Pacific's rating indicates a generally favorable investment perspective, the failure to meet all strategy criteria flag potential concerns that investors should be aware of. The overall mix of PASS and NEUTRAL ratings suggests that while the company has their strengths, there may also be underlying issues that need addressing.

Stocks: UNP