This Omaha stock steams past Berkshire
As the markets hit all-time highs, an old-line railroad stock is one of the leading performers.
Here we sit in the year 2013 and guess what? A railroad stock is one of the leading stocks in the entire market!
Union Pacific (UNP) is a $71.7 billion large-cap stock, whose company is headquartered in Omaha, Neb. It's also a stock I own in my conservative growth accounts.
Now you may be asking: Isn't this a stock of yesteryear, a stodgy old one? Yes, but it doesn't have the performance of the majority of stocks of yesteryear. It continues to retain its "Best Stocks Now"-like performance!
During the past 10 years, UNP has delivered a 19.8% return each year to investors. The great Berkshire Hathaway (BRK.B), by contrast, has delivered 8.6% per year, during the same time!
Over the past five years, UNP has delivered an average of 17.9% per year, while BRKB has dealt investors a 6.3% return.
Over the past three years, it's delivered almost 32% each year to shareholders as compared to BRKB's 13.5%.
Boring old UNP continues to chug along, delivering 20% to 30% per year. And in the last 12 months, UNP is up another 40.1%, earning it a momentum grade of "A-."
Many people say that investing is all about the future. So let's take a look at UNP's valuation. While there are no guarantees that it will continue to perform well, whatsoever, UNP clearly has a proven track record (pardon the pun).
And looking to the future, we see that UNP is trading at just 14.1 times forward earnings. It is trading at a discount to the market, probably because it's not a very glamorous, "cool" stock. UNP is expected to grow by 14.2% per year over the next five years. It is trading at right around its growth rate, so it's not expensive, with a PEG ratio of 0.99.
The final piece in analyzing UNP is to take a look at its stock chart, and here I see a stock that continues to hit new highs!
Out of the almost 3,400 stocks that I track on a daily basis, UNP is ranked number 84 overall and it earns an overall grade of "A."
And you thought that the only good thing in Omaha was the wizard himself!
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