10 Best Roth IRA Stocks to Buy According to Analysts

6. Union Pacific Corporation (NYSE:UNP)

Analysts Upside Potential: 13.78%

Union Pacific Corporation (NYSE:UNP) is a Nebraska-based shipping & receiving and supply chain management company. UNP is an attractive investment because railroad companies play a crucial role in transporting heavy goods, raw materials, agricultural products, and fuels efficiently over land. With the infrastructure already in place, companies like Union Pacific primarily allocate costs to maintaining their networks, covering expenses such as fuel and labor. As the economy grows, revenue in the railroad industry can increase over time. This makes investing in railroads a strategic way to capitalize on long-term US economic expansion. Since the start of 2025, the stock has surged by over 2%.

In the fourth quarter of 2024, Union Pacific Corporation (NYSE:UNP) reported $25.3 billion in revenue, marking a 1.54% increase compared to the previous year. The company reached a preliminary deal with its largest customer to reduce shipping volume by more than 50% by the second half of 2026. In addition, it has gained full control over its SurePost service. To adapt, UNP is restructuring its US network and launching a multi-year efficiency initiative aimed at streamlining operations and achieving approximately $1 billion in cost savings.

In February, Union Pacific Corporation (NYSE:UNP) increased its quarterly dividend by 0.6% to $1.64 per share, extending its streak of dividend growth to 23 consecutive years. As of March 23, the stock yields 2.29%, making it an appealing choice for income-focused investors. The company’s strong cash flow continues to support shareholder returns, generating $10.1 billion in operating cash flow and $6.3 billion in free cash flow in fiscal 2024. UNP also returned $5.9 billion to shareholders through dividends and stock buybacks.