Union Pacific stock: buy or sell
Jan 16th, 2021
Union Pacific stock brief
- Union Pacific closed on Friday at $216.60 after scarcely moving a 0.20%.
- Union Pacific is presenting its earnings report next Thursday
- Raymond James published a hold rating for Union Pacific on Friday, with a target of $250.00
- Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, engages in the railroad business in the United States.
Should I buy Union Pacific stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $UNP stock a buy?
Currently, Union Pacific stock matches one trading strategy:
Uptrend buy setup
Union Pacific stock is in an uptrend since last October that so far marked an amazing 27.00% gain. Price marked a local bottom in this uptrend at $197.46 in mid-December, and since then it bounced up a 9.69%. Price just broke out above the buy point at $210.15, but it can be traded. If price climbs above $220.66, it would be better to wait to another pullback. If you decide to enter this trade, the suggested stop loss is at $191.54
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$210.15||$191.54||8.86%|
Should I sell Union Pacific stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies give us the ability us to avoid rash decisions based on our personal feelings or the noise surrounding the market. Our trading system selects very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups are not intended for shorting $UNP stock
As a rule of thumb, you must never mantain an investment that results in higher than expected losses by the time of purchase. When to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Union Pacific stock?
Currently, Union Pacific stock doesn't match any of our preferred sell setups, so if you own Union Pacific shares and your operation is in profit probably is not time to sell now
Union Pacific ratings
In the last month, 7 brokerage ratings were published for Union Pacific
|Jan 11th, 2021|
|Barclays||Neutral → Neutral|
|BMO Capital Markets||Buy|
|Sanford C. Bernstein|
|Smith Barney Citigroup||Neutral|
|Jan 12th, 2021|
|JPMorgan Chase & Co.||Neutral|
|Jan 15th, 2021|
Union Pacific stock analysis
Since last October, Union Pacific has been printing an uptrend that by now marked an amazing 26.89%. The price line shows higher tops and bottoms, and along the way provided very few buying opportunities for those who wanted to invest. Latest low was in mid-December, when price bounced at $197.46. Union Pacific broke out above $210.15 (its last top) on January 7. That breakout was a good buying opportunity
Supports and resistances
Price is at all-time highs and there are not upper resistances.
The current support levels are:
Since the price surpassed the upper band last Tuesday, the price sliced by 1.74%. The price is trading very close to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks
Relative strength index
The RSI dropped below the overbought level of 70 last Monday after just crossing to the overbough zone for a single day (weak signal). The RSI value on Friday was 63.93. Union Pacific stock slided a 1.01% since RSI lost the overbought zone
Union Pacific stock price history
Union Pacific IPO was on Jan 2nd, 1980 at $0.99 per share1. Since then, UNP stock has risen by 21,778.79%, with an average of 531.19% per year. An investment of $1,000USD on Jan 1980 would have a value of $218,787.88 nowadays.
1: Adjusted price after possible price splits or reverse-splits
Price target for Union Pacific stock
How much a stock will be priced tomorrow or next week is quite unpredictable. Banks and financial organisations publish their analysis forecasting how a particular stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions release their price forecasts based on the stock price action and the company fundamental data. Most of these forecasts follow the publication of new fundamental data by the company, and many times. Again, these forecasts are not direct recommendations for small traders and should not be followed blindly.
There are 5 price predictions released for Union Pacific that average $235.20. Union Pacific closed at $216.60 on Friday, that is a 7.91% than the forecasted price.
|Brokerage firm||Price target|
|Jan 11th, 2021|
|BMO Capital Markets||$220.00 → $230.00|
|Sanford C. Bernstein||Not available|
|Smith Barney Citigroup||$215.00 → $250.00|
|TD Securities||$225.00 → $230.00|
|Jan 12th, 2021|
|JPMorgan Chase & Co.||$212.00 → $216.00|
|Jan 15th, 2021|
|Raymond James||$220.00 → $250.00|
Earnings and financials
Union Pacific ($UNP) releases quarterly earnings report next Thursday. Forecasted for this quarter is $2.17, compared to $2.01 that was reported for Q3.
Investors event was hosted by Union Pacific ($UNP) last October after releasing the earnings report. Union Pacific reported earnings of $2.01 per share on sales of $4.9 billion. The analysts estimate was $2.05 per share on revenue of $5.0 billion.Same quarter last year, reported EPS was $2.22, so current EPS means a decrease of -9.46%. Looking at sales, figures fell a -10.82% compared to $55.2B same quarter last year.
Union Pacific performance
|Union Pacific ($UNP)||7.80%||3.90%||21.30%|
Important:The thoughts contained in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the individual situations of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for education motives only
Union Pacific summary
|Friday, January 15th, 2021|
|Day range||$213.25 - $217.52|
|Average true range||$5.95|
|50d mov avg||$204.18|
|100d mov avg||$199.29|
|200d mov avg||$182.40|
|Earnings date||January 21st, 2021|