5 Most Profitable Industrial Stocks Now

1. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders: 83

Union Pacific Corporation (NYSE:UNP), also known simply as Union Pacific, is one of America’s leading transportation companies. Its principal operating company, Union Pacific Railroad, is North America’s premier railroad franchise, covering 23 states across the western two-thirds of the United States.

Earlier this January, Susquehanna analyst Bascome Majors raised the price target on Union Pacific Corporation (NYSE:UNP) to $218 from $215 and keeps a Positive rating on the shares. The analyst believes flattish 2023 EPS seems achievable against undemanding volume assumptions. Although the analyst raised estimates marginally, given the fairly full multiple, investors should wait for better entry points on signs of demand stabilization.

Union Pacific Corporation (NYSE:UNP) was a popular buy among elite funds in Q4 2022 as 83 hedge funds in Insider Monkey’s database owned stakes in the company, up from 74 in the previous quarter. The collective value of these stakes is nearly $5.4 billion.

Diamond Hill Capital Management mentioned Union Pacific Corporation (NYSE:UNP) in its Q2 2022 investor letter. Here is what the firm has to say:

“Union Pacific Corporation (NYSE:UNP) is a large railroad company that carries freight across the western US and between Canada and Mexico. It transports a variety of industrial goods, raw materials and containerized freight between major US ports, industrial hubs and international gateways. The goods that Union Pacific and other railroads transport are fundamental inputs in the economy and are resilient to long-term trends in the business cycle. We believe Union Pacific offers a compelling investment opportunity as its substantial infrastructure investments, relative cost advantages, limited leverage and the essential nature of the products it delivers provides the company with what we believe is one of the widest moats in the transportation sector. We also like that Union Pacific has a shareholder-oriented management team that is focused on growing earnings while returning capital to shareholders.”

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