Benchmark Reaffirms Buy Rating on Union Pacific (UNP), Sees Strong Operational Momentum

Core Viewpoint - Union Pacific Corporation (NYSE:UNP) is recognized for its strong operational momentum and strategic positioning, making it a compelling investment choice, particularly for long-term, income-oriented investors [2][3][4]. Group 1: Company Overview - Union Pacific Corporation is one of the largest railroad companies in the United States, operating a vast network that spans 23 states and over 32,000 miles [2]. - The company manages bulk, industrial, and premium freight shipments across the country, consolidating numerous acquired railroads under its main subsidiary, Union Pacific Railroad [2]. Group 2: Financial Performance - In the third quarter, Union Pacific reported adjusted earnings per share of $3.08, surpassing both analyst forecasts and market expectations, driven by lower operating costs and gains from real estate sales [3]. - The stock has a dividend yield of 2.53% as of October 27, reflecting its reliable dividend stream [5]. Group 3: Operational Efficiency - Union Pacific achieved record levels in key efficiency metrics, including train velocity and dwell times, indicating strong operational performance [4]. - The company enjoys solid backing from customers and labor unions, which is expected to be crucial during merger-related regulatory reviews [4]. Group 4: Investment Outlook - Benchmark Co. analyst Nathan Martin reaffirmed a Buy rating on Union Pacific shares with a price target of $260, reflecting confidence in the company's growth outlook [3][4]. - The company has a 125-year history of paying regular dividends and a 19-year streak of dividend growth, making it an attractive option for retirement portfolios [5].