Union Pacific Corporation (NYSE:UNP) is one of them Stock on Jim Cramer’s radar. During the episode, a caller asked Cramer for his thoughts on the stock, and he said:
Union Pacific just had a parabolic motion. I always point out that transport also has parabolic motions. When I see a parabolic movement, I just don’t recommend it. Parabolic means it goes straight. I can’t recommend a stock I really like, Union Pacific, until it goes down. And my work would say you can’t buy that $265 stock until it drops at least $30.
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Union Pacific Corporation (NYSE:UNP) operates in the railroad business, transporting a variety of commodities including agricultural products, chemicals, construction materials, energy products, and vehicles. Cullen Capital Management, LLC said the following about Union Pacific Corporation (NYSE:UNP) in its fourth quarter 2025 investor letter:
Union Pacific Corporation (NYSE:UNP) is North America’s largest Class I railroad, operating a leading network in the western two-thirds of the United States that connects key ports, industrial centers, and population centers. The company benefits from a structurally advantageous network with long haul lengths, a rich carrier mix, and strong exposure to intermodal, industrial, and agricultural end markets, supporting sustained pricing power and margin potential. A key catalyst is the growing prospect and growing investor focus on the proposed transcontinental merger with Norfolk Southern, which offers a clear path to meaningful revenue synergies, cost efficiencies, and an accelerated revenue growth profile. Even on a standalone basis, Union Pacific is positioned to improve operating ratios driven by labor productivity gains, network efficiency initiatives, and contract restructuring. Management’s executive track record and strong free cash flow generation provide the flexibility to return capital while continuing to invest in service and reliability. As integration clarity improves, the market is likely to re-rate the shares to reflect the long-term growth opportunity and enhanced earnings power. Overall, Union Pacific combines high-quality assets, visible operating momentum, and attractive strategic options that support an attractive investment outlook. The stock trades at 18x forward earnings and offers a 2.4% dividend yield.
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