Forecast Of The Day: Union Pacific’s Bulk Carloads
What?
Union Pacific (NYSE:UNP) Bulk Carloads declined from around 2.1 million in 2019 to about 1.9 million in 2020. Trefis expects the metric to recover to about 2 million in 2021 and rise to about 2.06 million in 2022.
Why?
While Bulk Carloads fell in 2020 due to the impact of the Covid-19 pandemic, we expect to see a rebound, driven by rising economic activity and strong demand following the easing of Covid-19 lockdowns.
So What?
We think the recovery in demand is more or less priced into UNP stock. We value UNP at about $262 per share, about 6% ahead of the current market price.
See Our Complete Analysis For Union Pacific
What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.
| Returns | Jan 2022 MTD [1] |
2022 YTD [1] |
2017-22 Total [2] |
| UNP Return | -2% | -2% | 138% |
| S&P 500 Return | -1% | -1% | 111% |
| Trefis MS Portfolio Return | -5% | -5% | 274% |
[1] Month-to-date and year-to-date as of 1/13/2022
[2] Cumulative total returns since the end of 2016