|Bid||170.81 x 800|
|Ask||172.00 x 1200|
|Day's Range||169.02 - 172.21|
|52 Week Range||128.08 - 180.54|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||20.35|
|Earnings Date||Oct 17, 2019|
|Forward Dividend & Yield||3.88 (2.31%)|
|1y Target Est||186.04|
Cost-cutting is boosting profits for North American railroads, but declining freight volumes and increasing competition from truckers may pull the brakes on growth.
Year-to-date U.S. rail volumes fell yet again for the week ending Sept. 7, according to the latest data from the Association of American Railroads. Compared with the same period in 2018, year-to-date U.S. rail volumes were 3.7% lower at 18.67 million carloads and intermodal units.
A Union Pacific (NYSE: UNP ) train carrying flammable liquid derailed at UNP's rail yard in Dupo, Illinois. Dupo is across the Mississippi River from St. Louis, Missouri. At around 12:45 p.m. local time, ...
The Surface Transportation Board (STB) has determined that CSX (NYSE: CSX), Union Pacific (NYSE: UNP) and the U.S. operations of Canadian Pacific (NYSE: CP), known as the Soo Line, were "revenue adequate" in 2018, meaning roughly that the railroads earned enough returns on their investments to support their capital projects. The STB calculated that the 2018 railroad cost of capital was 12.22 percent, and the railroads that achieved a return on investment greater than that percentage were deemed revenue adequate.
In this article we are going to estimate the intrinsic value of Union Pacific Corporation (NYSE:UNP) by taking the...
Jacksonville-based Patriot Rail and Ports has been sold to New York-based First State Investments. The deal pairs the company, a combination of the former Patriot Rail and Diversified Port Holdings, with industry notable MidRail LLC. Patriot CEO John Fenton, FSI Director of Infrastructure Investments John Ma and MidRail Chairman Gil Lamphere spoke with the Business Journal about what the acquisition means for Patriot, which operates 13 shortline railroads and 10 port terminals around the country. MidRail has a decades-long reputation in the rail industry.
During Thursday's Mad Money program Jim Cramer noted that we saw bond yields and manufactured goods orders rise during the session. Railroad Union Pacific Corp. also gave investors a better-than-expected outlook that sent shares up 3.8%. I wonder what the charts and indicators look like for this member of the Dow Jones Transportation Average?
U.S. rail volumes fell 5 percent in August amid weaker demand for rail services in the domestic manufacturing sector. U.S. freight railroads originated 2.15 million carloads and intermodal units in August, a 5 percent dip from August 2018, according to the Association of American Railroads (AAR). Of that, U.S railroads originated 4.6 percent fewer carloads, at 1.06 million carloads, while intermodal originations were down 5.4 percent to 1.09 million intermodal containers and trailers.
OMAHA, Neb., Sept. 5, 2019 /PRNewswire/ -- The world's largest steam locomotive, Union Pacific's Big Boy No. 4014, will embark on a third and final tour celebrating the 150th anniversary of the transcontinental railroad's completion, giving rail fans across the Southwest an opportunity to experience history. The newly restored locomotive recently completed a tour across the upper Midwest and a trip to Ogden, Utah, for a May 9 ceremony commemorating the anniversary. No. 4014 will leave the Steam Shop in Cheyenne, Wyoming, Sept. 27 for the "Great Race Across the Southwest," making brief whistle-stops in communities along its route through Arizona, Arkansas, California, Colorado, Kansas, Missouri, Nevada, New Mexico, Oklahoma, Texas, Utah and Wyoming.
Loose truck capacity, trade uncertainty and lower coal demand are among the headwinds that some Class I railroads are seeing for the remainder of 2019. Norfolk Southern (NYSE: NSC) also noted softer volumes in the third quarter, followed by flat volumes in the fourth quarter.
Union Pacific Corp. said Wednesday that it remained confident that, despite weaker-than-anticipated volumes, it can hold prices at levels that “well exceed” rail inflation costs. Really?
Union Pacific Corp. cut its outlook for second-half volumes, after the railroad operator said third-quarter volumes were softer than anticipated. The stock gained 0.4% in morning trading Wednesday, after falling 1.6% on Tuesday. Chief Financial Officer Robert Knight said at the Cowen and Company Global Transportation Conference, according to a transcript provided by FactSet, that after weaker-than-expected third-quarter volumes, "our thinking is that volume for the second half will now be down mid-single digits versus 2018." In July, Knight had said that his "best thinking at this point" is that second-half volume will be down around 2% or so versus 2018. Knight said Wednesday, however, that he remained confident that "the dollars we yield from our pricing initiatives will again well exceed our rail inflation costs in 2019." As a result, with margins expected to improve in the second half of the year, Knight said previous guidance of a "sub-61% operating ratio" in 2019 remains intact. The stock has shed 6.1% over the past three months, while the Dow Jones Transportation Average is little changed and the Dow Jones Industrial Average has gained 3.9%.
The railroad giant notes that the U.S.-China trade war has taken a particular toll on the volume of soybean and international shipping containers it is hauling along the nation's rails.
A 7-mile freight rail service within McClellan Business Park has a new owner. Australia-based First State Investments acquired Patriot Rail Co., a 12-railroad company based in Jacksonville, Florida, that includes McClellan-serving Sacramento Valley Railroad. Executives with both Patriot Rail and First State said they don’t expect any changes to the service at McClellan, where Patriot has operated since 2008.
WASHINGTON, Aug. 29, 2019 /PRNewswire/ -- The families of three American war heroes who died at a railroad crossing in Midland, Texas, in 2012 are asking the U.S. Supreme Court to review their legal case, arguing it could impact safety at many of the nation's 250,000 railroad crossings. The veterans – Army Sgt. Maj. Lawrence Boivin, Marine Chief Warrant Officer 3 Gary Stouffer and Army Sgt. Maj. William Lubbers – were three of the four who died when a Union Pacific (UNP) train rammed a parade float carrying wounded war heroes. The veterans' families sued Union Pacific, but a Texas court granted summary judgment for the railroad and the 11th Court of Appeals in Eastland affirmed.
With favorable market conditions in Canada, both Canadian Pacific (CP) and Canadian National (CNI) are on a solid footing for near-term growth.
Shares of CSX (NYSE:CSX) aren't looking good. The stock has been in decline as economic and trade-related worries continue to weigh on investor sentiment. Recent quarterly results aren't helping matters and all said, CSX stock is now down 20% from its highs.Source: Shutterstock Is it enough to draw in investors, or is the start of a nasty bear market in this rail stock?If the charts are any indication, more pain may be on the way. There is some hope left for bulls, if support can buoy the name. Or if we get some positive fundamentals news for the stock. But as it stands, the technicals are struggling.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's look at a few charts and see where CSX stock could be heading. Trading CSX Stock Click to EnlargeThere is a daily chart to the side and a below that is a weekly chart. Both highlight the not-so-hot setup of CSX stock price right now.As you can see on the daily chart, CSX stock has a very bearish-looking setup. After declining precipitously from $80 in mid-July, shares continue to put in a series of lower highs. That's squeezing CSX against a static level of support near $64. Should support give way, the stock will start probing the 2019 lows.CSX stock is already below all of its major moving averages and Fibonacci retracements. The 20-day is below the 50-day moving average, and the 50-day is crossing below the 200-day. This indicates that both short- and long-term momentum is turning in the bears' favor.For bulls to have a shot, they first need $63 to $64 to prove itself as support. From there, they need to get CSX over downtrend resistance (blue line) and the 20-day moving average. If they can muster up the strength for that, clearing the 61.8% retracement near $67 is next on the list.Should support fail, the year-to-date lows near $60 are the first target. Below that and the 52-week lows near $58 are next. Click to EnlargeOn the longer term chart, investors can see that CSX is teetering on its 200-week moving average. While the action hasn't been decisive, shares are actually below this mark now. This key moving average drew in buyers last December, halting CSX's decline and kickstarting a multi-month rally.The same momentum has not been seen this time around. Furthermore, long-term uptrend support (blue line) is being leaned on as well. If these levels give way, a decline to $58 is surely possible.On both charts, a rebound over $71 would be most encouraging for the bulls. Valuing CSX StockAn escalating trade war and worries about a recession do not help companies like CSX Corp. What does help CSX, Norfolk Southern (NYSE:NSC), Kansas City Southern (NYSE:KSU), Union Pacific (NYSE:UNP) and other rail companies is a strong consumer.Thankfully, that's exactly what we have. With a strong labor market and consumers who are willing to spend -- as noted by JPMorgan (NYSE:JPM), Visa (NYSE:V) and others -- demand for products remains high. Should that change, then the rails could be in trouble.Some of that fear is getting priced into the stock as we speak. With an inverting yield curve and manic headlines driving the news each day, how can investors not start to price in that possibility?Of course, it doesn't help when CSX stock fails to deliver as well. In July, the company missed on second-quarter expectations. Revenue of $3.06 billion missed estimates by more than $80 million and contracted 1.3% year-over-year. Earnings of $1.08 per share missed consensus estimates by 3 cents a share. Making matters worse, management cut its full-year revenue outlook.This came after five straight earnings and revenue beats. In Q1, CSX beat earnings estimates by more than 10% and grew revenue 4.75% year-over-year. To say Q2 was disappointing is an understatement.With additional tariffs looming, we may see some "pull ahead" from buyers in the current quarter. Further, we're coming up to Q3 and Q4, which are typically heavy demand months for consumers. If that's enough to improve the fundamentals for CSX stock, we'll need to it reflected on the charts.Over $67 give the bulls some spark. Over $71 and momentum can really pick up.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Kenwell is long V. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Industry Dividend Stocks for Growth and Income * 7 Stocks the Insiders Are Buying on Sale * 7 of the Worst Stocks on Wall Street The post CSX Stock Charts Point to Looming Breakdown appeared first on InvestorPlace.
OMAHA, Neb. , Aug. 28, 2019 /PRNewswire/ -- Rob Knight, chief financial officer of Union Pacific Corporation (NYSE: UNP), will address the following investor conferences in September: Cowen 12th Annual ...
OMAHA, Neb. , Aug. 27, 2019 /PRNewswire/ -- Union Pacific was recognized as a Military Friendly Employer® by Victory Media, publisher of G.I. Jobs®, for the fifth consecutive year. The designation recognizes ...
If you are looking for some fresh investing inspiration, look no further. Hedge funds have just revealed their second quarter trades, and the results are now in. RBC Capital has analyzed the 2Q19 13f’s of 363 major hedge funds with significant stakes in US equities. And from this data it has compiled a list of hedge funds’ most popular stocks right now i.e. stocks with the most hedge fund dollars invested. “In our experience, crowded names among active managers, including hedge funds, are usually crowded for a reason (good fundamentals). Most of our baskets of crowded names have outperformed since we started tracking the data at the end of 2010, and our stats can be used to make the case for hedge fund management” comments the firm. Nonetheless the firm does add that positioning is still a risk factor worth monitoring. After all, outperformance of popular hedge fund longs has occurred against the backdrop of strong growth leadership in the market “and may merely reflect the underlying style bias of the market that has been in place” says RBC Capital. Notably 60% of the list falls in TIMT (technology, internet, media and telecommunications), down from 70% last quarter.Here we take a closer look at five top stocks that feature in the Top 20 list. What’s more all these stocks also score a ‘Strong Buy’ analyst consensus, based on all the ratings over the last three months. Let’s see which five stocks make the grade now: 1\. Microsoft (MSFT)Microsoft refused to give up its no. 1 position in the second quarter. It remains the most popular hedge fund stock- despite a sizable decline in the number of funds owning the stock (for the second quarter in a row). Indeed, RBC Capital reveals that hedge funds still hold a whopping $18,131 million of Microsoft shares. That’s with 29% of the 363 funds that it examined holding MSFT stock. Luckily for these funds MSFT scores a firm ‘Strong Buy’ analyst consensus. That's with a $154 average price target (15% upside potential). Out of 24 analysts covering MSFT right now, 22 are bullish with only 1 hold rating and 1 sell rating (from long time MSFT bear Jefferies' John Difucci). “We maintain a bullish stance on MSFT as one of our top cloud ideas to own in 2019 based on a multiyear transformation of the model driven by commercial cloud revenue that could reach $100B in CY23 from a $44B run-rate today” celebrated KeyBanc analyst Brent Bracelin after the company reported a solid revenue beat on commercial cloud growth of 39% y/y.Aptly calling his report ‘On Cloud Nine’, the analyst reiterated his MSFT buy rating while ramping up the price target from $143 to $155. Fiscal 4Q19 results impressed as it sustained double-digit growth for the eighth consecutive quarter, despite a material two-point FX headwind, summed up Bracelin. 2\. Facebook (FB)Facebook shifted up a notch in the second quarter. The social media giant is now the third favorite hedge fund stock, up from fourth place in Q1. That’s due to Alphabet Inc (GOOGL) slipping from 2 to 4 in the quarter after seeing a double-digit decline in ownership. In contrast, six new funds bought into FB in Q2.According to RBC Capital, 34% of the funds it tracks hold Facebook stock, while the total value of the holding comes out at $16,191 million (so still quite a way off Microsoft). Analysts share this bullish outlook. With 33 out of 36 analysts calling FB a buy, the $234 average price target suggests over 30% upside lies ahead. Rosenblatt Securities analyst Mark Zgutowicz believes that the demand picture for FB properties could not be stronger. “We maintain our Buy rating and $242 PT on FB shares and would be aggressive buyers on any weakness related to the 4Q guide deceleration” he instructed investors recently. Demand for the feeds remains high, says Zgutowicz, given stellar ROAS [return on ad spend] and Stories ad tests are steadily progressing at still a low bar for the stock. “Our checks with direct response advertisers continue to point to stellar ROAS on the triple strength targeting platform of News Feed (NF), Messenger and Instagram” he concluded. 3\. Netflix (NFLX)Netflix is hedge funds’ fifth most popular stock. Funds have now invested a jaw-dropping $10,504 million in the stock, with two new funds creating NFLX positions in Q2. As a result, just over a fifth of the funds polled hold NFLX in their portfolio. So does this mean we have a buying opportunity at hand? After all the stock has pulled back significantly following disappointing earnings results. According to the Street, the answer seems to be yes. The stock is showing a Strong Buy consensus with an average price target of $423. This translates into considerable upside potential of 45%. “It’s still early in the quarter, but data through July looks solid (rebound from 2Q),” commented SunTrust Robinson’s Matthew Thornton on August 19. “Google searches (on keyword “Netflix”) and mobile app downloads for the month also show nice upticks vs 2Q19 and back toward or above the 1Q19 high-water-mark.”Although NFLX lost 126,000 US customers in the second quarter, Thornton believes popular series like Sacred Games, The Crown and Peaky Blinders can help stem the losses. With this in mind, the analyst reiterated his NFLX buy rating and $402 price target. A similar message comes from Bernstein analyst Todd Juenger. “The defining question for investors coming out of Netflix [second quarter] is whether the subscriber miss was simply natural variation (tied to a price increase) in a long-term growth trajectory, in other words a ‘blip,” he told investors. “We think the case for ‘this is a blip’ is compelling.” Clearly hedge funds think so too. 4\. Boeing (BA)Boeing was a new name to the Top 20 hedge fund list in Q2. The world’s largest aerospace company now features in 19% of the 363 funds in RBC’s study (with 9 funds creating new positions in the quarter). These funds own a total of $5,458 million of BA stock.And on the whole analysts would approve of the fund enthusiasm for BA. If we look at only the Street’s best-performing analysts, the consensus works out at ‘Strong Buy.’ Plus the $429 average analyst price target indicates 20% upside lies ahead. Of course, all eyes are on Boeing’s 737 Max plane, which suffered two fatal crashes in a five-month span and is currently grounded. According to Bloomberg, there about 600 planes now out of service. However, the Federal Aviation Authority (FAA) just indicated that the model could be ungrounded come October. “We continue to support the FAA and global regulators on the safe return of the Max to service,” Boeing said in a statement. Following the latest news, five-star Cowen & Co analyst Cai Rumohr reiterated his buy rating with a bullish $460 price target (29% upside potential). He sees a 3-to-1 positive risk-reward around the FAA certification, and expects the stock to react to early indicators of success/failure.“MAX recovery profile looks intact, and FAA certification flight could be 4-6 weeks off -- a key milestone for the stock” Rumohr said. “Traffic growth, 787 demand, 777x schedule are "watch" items; but they are offset by robust 787 cash generation.” Bottom line: BA remains the analyst’s top pick for cash flow per share of $30+ (9-10% yield) in 2020 & 2021. 5\. Union Pacific Corp (UNP) Union Pacific is a leading railroad franchise, covering 23 states in the western two-thirds of the United States. Like BA, UNP is a new addition to the Top 20 list of hedge fund stock holdings. Eight new funds created UNP positions in Q2, while the total $ value owned now stands at $5,157 million. We can also see that 15% of funds in RBC’s study own Union Pacific.So what’s driving this wave of bullish sentiment? Well, the company just posted a 2Q EPS and EBIT beat and a record operating ratio despite being significantly hindered by flooding. “We raise our estimates and PT and continue recommending UNP as a top pick” five-star Cowen & Co analyst Jason Seidl wrote following earnings. He now sees shares hitting $184 vs his previous $180 price target. “UNP is one of the best managed North American Class I railroads and the only western one that is publicly traded” stated Seidl. With the hire of Jim Vena as COO, he believes the company is on its way to revenue improvement.That’s thanks to the adoption of Precision Scheduled Railroading (PSR). Created by the late Hunter Harrison, PSR refers to the principle of generating extra revenues by using fewer railcars and locomotives. According to Seidl, UNP's precision scheduled railroading rollout is on the right track so far. He notes, for instance, a 10% increase in train length that has seen UNP increase their parked locomotives to 2,150. 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