分组1 - Norfolk Southern reported quarterly earnings of $3.22 per share, exceeding the Zacks Consensus Estimate of $2.78 per share, and showing an increase from $3.04 per share a year ago, resulting in an earnings surprise of +15.92% [1] - The company posted revenues of $2.97 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.87%, and a decrease from $3.02 billion in the same quarter last year [2] - Over the last four quarters, Norfolk Southern has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 1.5% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] - The current consensus EPS estimate for the upcoming quarter is $2.78 on revenues of $3.03 billion, and for the current fiscal year, it is $12.77 on revenues of $12.55 billion [7] - The Transportation - Rail industry, to which Norfolk Southern belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

分组1 - Canadian Pacific Kansas City (CP) reported quarterly earnings of $0.95 per share, missing the Zacks Consensus Estimate of $0.99 per share, but showing an increase from $0.92 per share a year ago, resulting in an earnings surprise of -4.04% [1] - The company posted revenues of $2.81 billion for the quarter ended December 2025, which was 1.79% below the Zacks Consensus Estimate and an increase from $2.77 billion year-over-year [2] - The stock has underperformed the market, losing about 1.2% since the beginning of the year compared to the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.87 on revenues of $2.83 billion, and for the current fiscal year, it is $3.81 on revenues of $11.55 billion [7] - The Zacks Industry Rank for Transportation - Rail is currently in the bottom 16% of over 250 Zacks industries, indicating potential challenges for the sector [8] - Canadian National (CNI), a competitor in the same industry, is expected to report quarterly earnings of $1.43 per share, reflecting a year-over-year change of +10% [9]

Company Overview - Union Pacific (UNP) is based in Omaha and operates in the Transportation sector, with a year-to-date share price change of 0.53% [3] - The company currently pays a dividend of $1.38 per share, resulting in a dividend yield of 2.37%, which is significantly higher than the Transportation - Rail industry's yield of 0.91% and the S&P 500's yield of 1.36% [3] Dividend Performance - The current annualized dividend of Union Pacific is $5.52, reflecting a 1.5% increase from the previous year [4] - Over the past five years, Union Pacific has increased its dividend three times, achieving an average annual increase of 7.19% [4] - The company's current payout ratio is 47%, indicating that it pays out 47% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Union Pacific anticipates solid earnings growth, with the Zacks Consensus Estimate for 2026 projected at $12.38 per share, representing a year-over-year earnings growth rate of 6.17% [5] Investment Considerations - Union Pacific is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [6] - The company is positioned as a more secure dividend option compared to high-growth firms or tech start-ups, which typically do not offer dividends [6]

Core Viewpoint - Union Pacific reported quarterly earnings of $2.86 per share, missing the Zacks Consensus Estimate of $2.9 per share, and showing a decline from $2.91 per share a year ago, indicating an earnings surprise of -1.47% [1] Financial Performance - The company posted revenues of $6.09 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 0.82%, and down from $6.12 billion year-over-year [2] - Over the last four quarters, Union Pacific has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Union Pacific shares have lost about 0.2% since the beginning of the year, while the S&P 500 has gained 1.5% [3] - The current status translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $2.94 on revenues of $6.14 billion, and for the current fiscal year, it is $12.38 on revenues of $25.43 billion [7] - The estimate revisions trend for Union Pacific was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Transportation - Rail industry is currently in the bottom 16% of the Zacks industries, suggesting that the outlook for the industry can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

分组1 - CSX reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.42 per share a year ago, representing an earnings surprise of -6.14% [1] - The company posted revenues of $3.51 billion for the quarter, missing the Zacks Consensus Estimate by 1.15%, and down from $3.54 billion year-over-year [2] - CSX has surpassed consensus EPS estimates two times over the last four quarters but has not beaten consensus revenue estimates during the same period [2] 分组2 - The stock has added about 0.8% since the beginning of the year, outperforming the S&P 500's gain of 0.4% [3] - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $3.55 billion, and for the current fiscal year, it is $1.89 on revenues of $14.71 billion [7] - The Zacks Industry Rank for Transportation - Rail is currently in the bottom 11% of over 250 Zacks industries, indicating potential underperformance compared to higher-ranked industries [8] 分组3 - The estimate revisions trend for CSX was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Canadian Pacific Kansas City, another stock in the same industry, is expected to report quarterly earnings of $0.99 per share, reflecting a year-over-year change of +7.6% [9]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Norfolk Southern due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Norfolk Southern is expected to report quarterly earnings of $2.78 per share, reflecting an 8.6% decrease year-over-year [3]. - Revenue projections stand at $3.01 billion, which is a 0.4% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 3.57% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Norfolk Southern matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - A positive Earnings ESP is a strong indicator of an earnings beat, particularly when combined with a favorable Zacks Rank [10]. - Norfolk Southern currently holds a Zacks Rank of 5, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, Norfolk Southern exceeded EPS estimates by 3.77%, having beaten consensus estimates three times in the last four quarters [13][14]. Industry Comparison - Canadian Pacific Kansas City, another player in the rail industry, is expected to report earnings of $0.99 per share, indicating a 7.6% year-over-year increase, with revenues projected at $2.88 billion, up 3.9% [18][19].

Core Insights - Canadian National Railway (CNI) achieved a record grain movement of over 3.28 million metric tonnes from Western Canada in November 2025, surpassing the previous record by 230,000 metric tonnes set in November 2020, marking the third consecutive month of strong grain movement [1][7] Group 1: Operational Performance - The achievement reflects CNI's strong execution capabilities and commitment to efficient grain transportation during the harvest season, emphasizing service reliability and collaboration with customers [2] - CNI's Grain & Fertilizers segment saw a 6% year-over-year increase in freight revenues during the first nine months of 2025 [4] Group 2: Winter Preparedness - CNI released its 2025-2026 Winter Plan, which includes enhanced locomotive reliability programs, strategic resource allocation, and targeted infrastructure investments to minimize weather-related disruptions [3][7] Group 3: Market Position - CNI currently holds a Zacks Rank 3 (Hold), with its share price rising 4% over the past three months, underperforming the Transportation - Rail industry's growth of 6.3% [5]

Core Viewpoint - Canadian Pacific Kansas City Limited (CP) is currently facing multiple challenges that make it an unattractive investment option [1] Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2026 earnings has decreased by 2.25% over the past 60 days, with downward revisions of 2.92% and 3.78% for 2025 and 2026, respectively, indicating a lack of confidence from brokers [2][3] - The current earnings estimates are 0.87 for the next quarter, 3.33 for the current year, and 3.82 for the next year, showing a downward trend in revisions [3] Price Performance - CP's stock has declined by 9.7% over the past year, while the Transportation - Rail industry has seen a growth of 3.3% [3] Operating Expenses - Operating expenses for CP rose by 1.5% year over year in the first nine months of 2025, with labor costs increasing by 0.7% despite a 3% decrease in fuel expenses [5][7] Financial Health - CP has high leverage, exiting Q3 2025 with cash and cash equivalents of C$411 million against long-term debt of C$21.5 billion, indicating insufficient cash to meet short-term obligations [8] - The company operates in a challenging macro environment characterized by economic uncertainty and geopolitical tensions [8] Industry Ranking - The rail industry has a Zacks Industry Rank of 175 out of 243, placing it in the bottom 27%, which negatively impacts CP's stock performance [9]

Core Insights - Canadian National Railway (CNI) is facing significant challenges that are adversely affecting its financial stability, primarily due to increased operating expenses and weak liquidity, making it less attractive for investors [1][6]. Financial Performance - The Zacks Consensus Estimate for CNI's current quarter earnings has been revised downward by 6% over the past 60 days, and for 2025, the estimate has been cut by 2.7% in the same period [1]. - CNI's stock price has decreased by 18.7% over the past year, which is a stark contrast to the Transportation - Rail industry's decline of 7.6% [2][6]. Industry Position - CNI currently holds a Zacks Rank of 5 (Strong Sell), indicating a weak position in the market [4]. - The industry rank for CNI is 211 out of 243, placing it in the bottom 13% of Zacks Industries, which suggests a challenging environment for the company [4]. Earnings Surprise History - CNI has a disappointing earnings surprise history, having underperformed the Zacks Consensus Estimate in two of the last four quarters, with an average miss of 0.07% [5]. Operating Expenses and Liquidity - The company's operating expenses are projected to rise from $10.27 billion in 2022 to $10.8 billion in 2024, which is straining profitability and operational efficiency [7]. - CNI's current ratio has remained below one for several years, indicating insufficient short-term assets to cover short-term liabilities. The ratio fell from 0.84 in 2022 to 0.61 in 2023, slightly improved to 0.66 in 2024, but declined again to 0.60 in Q3 2025 [8].

Core Viewpoint - The Zacks Transportation - Rail industry is facing multiple challenges, including tariff-induced economic uncertainties, inflationary pressures, high interest rates, and supply-chain disruptions. However, Union Pacific Corporation and CSX Corporation are positioned to navigate these challenges effectively, aided by declining fuel costs which support bottom-line growth [1]. Industry Description - The Zacks Transportation - Rail industry comprises railroad operators that transport various freight types across North America, focusing on logistics and supply-chain services. Revenue primarily comes from freight, with some companies also earning from rail-related services like repairs and land sales [2]. Factors Deciding the Industry's Outlook - Strong financial returns for shareholders are evident as companies increase dividends and buybacks, reflecting financial strength. CSX announced an 8.3% quarterly dividend increase, while Union Pacific raised its quarterly cash dividend by 3% to $1.38 per share [3]. - The decline in oil prices, which fell nearly 20% from the beginning of 2025, is a positive factor for the industry as it reduces fuel expenses, a significant cost for transportation companies [4]. - Economic uncertainty persists due to tariff policies that disrupt supply chains and increase costs, creating challenges for the industry and affecting investor sentiment [5]. Industry Performance and Valuation - The Zacks Transportation - Rail industry currently holds a Zacks Industry Rank of 211, placing it in the bottom 13% of over 250 Zacks industries, indicating gloomy near-term prospects [6][7]. - Over the past year, the industry has underperformed the S&P 500, declining 8.3% compared to the S&P 500's increase of 12.9%, while the broader sector fell by 15.5% [9][10]. - The industry is trading at a trailing 12-month price-to-book (P/B) ratio of 5.82X, lower than the S&P 500's 8.19X but above the sector's 3.12X [13]. Company Insights - Union Pacific, based in Omaha, NE, is well-positioned for growth due to stable e-commerce demand, cost-cutting efforts, and a strong track record of earnings surprises, having surpassed the Zacks Consensus Estimate in three of the past four quarters [17][18]. - CSX, located in Jacksonville, FL, anticipates total volume growth for 2025, focusing on operational excellence and efficiency initiatives, with capital expenditures projected at $2.5 billion this year [21][22]. CSX has also surpassed the Zacks Consensus Estimate in two of the past four quarters [23].