Union Pacific Railroad (NYSE:UNP) – Bullish Sequence Calling Higher

Last year, revenues at Union Pacific UNP grew to $22.8 billion, while earnings were up in mid-single-digits to $10.8 billion. Revenue growth was led by strong gains in Intermodal, amid capacity constraints in the trucking industry and a higher industrial production for commodities shipments.

Union Pacific’s year on year earnings growth rate has been positive over the past 5 years, outperforming the transportation industry. Its earnings are expected to grow by 7.1% yearly and revenue is expected to grow by 4% yearly.

UNP Future Revenue and Net Income Expectation

Moving on to the technical picture of the stock using weekly and daily Elliott wave chart:

From the January 2016 low, UNP rallied higher in an impulsive 5 waves advance breaking the 2015 peak which opened a new bigger cycle to the upside. The 5 waves rally ended as a wave I in September 2018, then did a 3 waves pullback Zigzag Structure in wave II which reacted higher from the blue box area, $122 – $129.

Up from there, the stock resumed the rally breaking to new all time highs and opening a new bullish sequence to the upside calling for a move toward target area $226 – $287. Therefore, UNP pullbacks are expected to remain supported above the December 2018 low of $127 and find buyers in 3 , 7 or 11 swings.

UNP Elliott Wave Daily Chart

UNP Elliott Wave Weekly Chart

Conclusion

UNP bulls are looking to stay in charge as the stock has a bullish sequence from 2016 and 2018 lows so Investors may be looking ahead to the next couple of weeks for buying opportunities during the coming pullbacks.