Jim Cramer Discusses These 13 Stocks & Rejects The AI PC Super Cycle

9. Union Pacific Corporation (NYSE:UNP)

Number of Hedge Fund Holders In Q3 2024: 78

Union Pacific Corporation (NYSE:UNP) is one of the largest railroad companies in America. As it transports industrial goods, the stock is dependent on industrial and business activity in America. As a result, the shares closed 2024 6.4% lower. However, Union Pacific Corporation (NYSE:UNP)’s fate appeared to turn around in January. Its shares soared by 5% in January after the firm’s Q4 profit of $2.96 per share beat analyst estimates of $2.78 as higher grain volumes and good intermodal performance helped the firm. However, while Union Pacific Corporation (NYSE:UNP)’s management shared during the call that it expects coal to decline, Cramer took the opposing view:

“Yes, let’s talk about the railroad. I mean it’s a gigantic railroad. Reported excellent numbers. Jim Vena is now running it. . . The operating ratio which of course you want to go lower was superb. And David I’ve got to tell you, they’ve got strong core pricing gains for industrials which I think is where you’re gonna do very well. Premium strength to, in international West Coast imports. This is really good and they, intermodal growth. I’ve got to tell you, this just may be one of the great reports. Now I’m gonna go a step too far. Alright. But the President is an old energy guy. West Virginia, Wyoming, Pennsylvania. The three biggest coal producers, Wyoming at the top, okay. Coal. I think coal’s gonna come back in fashion.”

“[When asked why?] Well those three states went for Trump. . .natural gas is, I think is going to five. And at that point they switch. Because there’s really coal all over the country and we’re going to export a lot. . . And by the way, coal was thirty percent of how we heated things in ten years ago and now it’s down to fifteen percent.”