Trade Tracker: Stephanie Link buys Union Pacific

Core Viewpoint - The transportation sector is showing positive momentum, with 82% of its stocks trading above their 40-week moving averages, indicating a potential bullish trend in the market [1]. Industry Summary - The S&P industrials, particularly transportation stocks, are performing well, suggesting a favorable economic outlook that may continue into 2026 [2]. - The strong economy is expected to drive better volumes and double-digit earnings growth for transportation companies [3]. - Cost efficiencies and productivity improvements are anticipated to contribute to margin expansion, with a notable reduction in debt levels [4]. Company Summary - Union Pacific (UNP) is highlighted as a buy opportunity, with a modest year-to-date increase of 5%, making it an attractive investment [2]. - The company is expected to achieve double-digit earnings growth, supported by strong fundamentals and an acquisition deal with Norfolk Southern that could add $2 billion in EBITDA synergies [5][6]. - The management team has successfully improved margins by 500 basis points over the last two years, positioning the company to catch up with other transportation stocks [6].