Why UNP Stock Is Climbing Today

Union Pacific (UNP) is advancing 4.5% today after the railroad operator delivered higher-than-expected fourth-quarter earnings per share this morning.

A Look at UNP’s Q4 Results

The company’s Q4 EPS jumped 7% versus the same period a year earlier to $2.91. Analysts on average had expected its Q4 EPS to come in at $2.80.

A worker in safety gear loading railroad ties on a truck, emphasizing the importance of manual labor.

On the other hand, UNP’s revenue fell 1% year-over-year to $6.12 billion, slightly below the mean estimate of $6.15 billion. The company noted that its revenue growth was stunted by intermodal shipments, which are less lucrative than other types of conveyances,  making up a relatively high percentage of its volume.

On a positive note, however, UNP reported that it is well-positioned to meet its target of increasing its EPS by high single-digit to low double-digit percentage levels in the next three years.

And while President Donald Trump’s threatened tariffs could weigh on UNP’s volumes, the company said that it would be helped by any effort by the administration to relax the government’s regulation of the railroad sector.

The Recent Price Action of UNP

In the last month, the shares have risen 7%. They are also up 7% in the last three months.

While we acknowledge the potential of UNP, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.