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Why Union Pacific Is Poised to Keep Chuggin'

By Brian D. Pacampara, CFA - Apr 8, 2013 at 10:31AM

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Market-trouncing returns could be written in this 5-Star.

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 (UNP -3.10%) has earned a coveted five-star ranking.

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

Union Pacific facts

Headquarters (founded)

Omaha, Neb. (1862)

Market Cap

$65.0 billion

Industry

Railroads

Trailing-12-Month Revenue

$20.9 billion

Management

CEO John Koraleski

CFO Robert Knight Jr.

Return on Equity (average, past 3 years)

18.2%

Cash/Debt

$1.1 billion / $9.0 billion

Dividend Yield

2%

Competitors

Burlington Northern Santa Fe

Canadian National Railway

CSX

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

On CAPS, 96% of the 1,364 members who have rated Union Pacific believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, tiomiguel, succinctly summed up the Union Pacific bull case for our community: "Passes all kinds of growth + value screens; steady upward trend in price for years (i.e., no cyclical surprises); should benefit if Keystone pipeline is cancelled again."

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

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Stocks Mentioned

Union Pacific Corporation Stock Quote
Union Pacific Corporation
UNP
$224.99 (-3.10%) $-7.20

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