UNION PACIFIC CORP Sees Strong Ratings from Growth Model

UNION PACIFIC CORP has received a favorable rating of 77% from a growth investment strategy report, indicating strong underlying fundamentals and valuation, which could positively influence its stock price.

Date: 16-12-2024

AI Rating: 7

According to the report, UNION PACIFIC CORP (UNP) has been evaluated based on the P/B Growth Investor model by Partha Mohanram, which focuses on identifying growth stocks with favorable fundamentals. With a score of 77%, UNP is positioned well within the criteria of this growth model. A score above 80% usually denotes interest from this strategy, while scores above 90% indicate strong interest.

The evaluation shows that UNP meets several key tests:

**Book/Market Ratio:** PASS
**Return on Assets:** PASS
**Cash Flow from Operations to Assets:** PASS
**Cash Flow from Operations to Assets vs. Return on Assets:** PASS
**Return on Assets Variance:** PASS
**Sales Variance:** PASS
**Capital Expenditures to Assets:** PASS

Notably, however, the stock does face challenges in two areas:

**Advertising to Assets:** FAIL
**Research and Development to Assets:** FAIL

While UNP has a strong overall rating, the failures in advertising and R&D may raise red flags for potential investors. Companies that fail to invest adequately in marketing and research may struggle to maintain competitive advantages in the long term, possibly affecting their market share and revenue growth.

Overall, the high rating indicates positive sentiment around UNP's stock, suggesting that it may attract investor interest, potentially driving up stock prices. However, investors should monitor the areas where UNP has failed the benchmarks to fully understand potential risks.

Stocks: UNP