Union Pacific Corp. UNP Stock Analysis

Union Pacific Corp. stock trades under the ticker UNP & has shown recent bullishness that traders & investors should take a closer look into.

UNP stock closed at $249.32/share on 2/15/2022.

Union Pacific Corp. UNP Stock’s Technicals Broken Down

UNP Stock Price: $249.32

10 Day Moving Average: $244.14

50 Day Moving Average: $245.95

200 Day Moving Average: $227.28

RSI: 55.91

MACD: -0.423

Yesterday, UNP stock completed a bullish MACD crossover, while gapping up & breaking out above its 10 & 50 day moving averages.

They have traded slightly above average volume in 2022 compared to the rest of the previous year & their RSI is neutral, signaling that there is more short-term momentum to come.

Their next levels to be watching for in terms of resistance are $250.53 & $251.80.

Union Pacific Corp. UNP Stock As A Long-Term Investment

Investors will find UNP stock’s P/E (ttm) to be modest at 24.38, but may balk at their P/B (mrq) of 10.91.

UNP stock saw 11.5% Quarterly Revenue Growth Y-o-Y, as well as 24% Quarterly Earnings GRowth Y-o-Y.

Their balance sheet will require a closer look before making an investment, as they have $1.01B in Total Cash (mrq) & $31.49B in Total Debt (mrq).

UNP stock’s dividend yield is 1.77%, which looks to be stable in the long run as their payout ratio is 43.12%.

81.14% of UNP stock’s outstanding share float is held by institutional investors.

Union Pacific Corp. UNP Stock As A Short-Term Trade Using Options

Traders can use options to take advantage of UNP stock’s current momentum trajectory, as well as hedge against broader market volatility.

I am looking at the contracts with the 3/18 expiration date.

The $250 & $255 calls look appealing, and liquid, as they have healthy levels of open interest.

The $265 & $270 puts also look appealing, but are far less liquid, showing that the market has bullish sentiment for UNP stock in the near-term.

Tying It All Together

Overall, both traders & investors will find UNP stock to have appealing attributes.

Investors will like their dividend, as well as their healthy valuation metrics.

Traders will like their current momentum, as well as their liquid call options.

UNP stock is worth taking a closer look at, regardless of your trading strategy.

*** I DO NOT OWN SHARES OF UNP STOCK ***