4-Star Stocks Poised to Pop: Union Pacific

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, railroad giant Union Pacific (NYS: UNP) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Union Pacific's business and see what CAPS investors are saying about the stock right now.

Union Pacific facts

Headquarters (founded)

Omaha, Neb. (1862)

Market Cap

$51.9 billion

Industry

Railroads

Trailing-12-Month Revenue

$20.2 billion

Management

Acting CEO John Koraleski
CFO Robert Knight Jr.

Return on Equity (average, past 3 years)

16%

Cash/Debt

$995.0 million / $8.8 billion

Dividend Yield

2.2%

Competitors


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,314 members who have rated Union Pacific believe the stock will outperform the S&P 500 going forward.

Just last month, one of those Fools, DanFPilot, succinctly summed up the bull case for our community:

A great American company. As the economy recovers and grows, they should reap the benefits. Highly efficient in an era of high energy costs. Not the best dividend yield, but payout ratio is low and have increased their dividend by [470%] since 2002.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Union Pacific may not be your top choice.

If that's the case, we've compiled a special free report for investors called "3 American Companies Set to Dominate the World," which uncovers a few other U.S. plays with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Canadian National Railway. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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