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Union Pacific (UNP) Stock Trades Down, Here Is Why

StockStory - Thu Oct 24, 12:09PM CDT

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What Happened?

Shares of freight transportation company Union Pacific (NYSE:UNP) fell 5.5% in the morning session after the company reported weak third quarter earnings results with revenue and EPS falling short of Wall Street's estimates. Q4 revenue guidance also calls for similar revenue compared to this quarter, below expectations. Overall, this was a weaker quarter.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Union Pacific? Access our full analysis report here, it’s free.

What The Market Is Telling Us

Union Pacific’s shares are not very volatile and have had no moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Union Pacific is down 6.2% since the beginning of the year, and at $228.29 per share, it is trading 11.1% below its 52-week high of $256.91 from February 2024. Investors who bought $1,000 worth of Union Pacific’s shares 5 years ago would now be looking at an investment worth $1,340.

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