Defense and infrastructure improves Industrials - SSGA
Written by Emily J. Thompson, Senior Investment Analyst
Source: SeekingAlpha
- Defense and Infrastructure as Growth Drivers: State Street Global Advisors highlight defense spending due to the Russia-Ukraine war and infrastructure investments as key growth drivers for the industrial sector.
- Rise in Defense Budgets: U.S. and Europe's defense budgets continue to increase, with NATO nations aiming for a spending target of 2% of GDP.
- Top Performing Industrial Stocks: Companies like Rheinmetall AG, Mitsubishi Heavy Industry, and General Electric are among the top performers in the industrial sector.
- Infrastructure Investment: Bills like the Infrastructure Investment and Jobs Act are stimulating demand for building products, construction, machinery, and transport networks.
- Technological Catalysts: AI technology, robotics, and machine learning-powered analytics are driving process improvements in manufacturing and logistics, enhancing productivity and efficiency.
Analyst Views on UNP
Wall Street analysts forecast UNP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UNP is 265.27 USD with a low forecast of 245.00 USD and a high forecast of 289.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 231.370
Low
245.00
Averages
265.27
High
289.00
Current: 231.370
Low
245.00
Averages
265.27
High
289.00
About UNP
Union Pacific Corporation, through its principal operating company, Union Pacific Railroad Company, connects over 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. It maintains coordinated schedules with other rail carriers to move freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico. The railroad’s diversified business mix includes bulk, industrial, and premium. Its Bulk shipments consist of grain and grain products, fertilizer, food and refrigerated, and coal and renewables. The Industrial shipments consist of several categories, including construction, industrial chemicals, plastics, forest products, specialized products (primarily waste, salt, and roofing), metals and ores, petroleum, liquid petroleum gases (LPG), soda ash, and sand. Its Premium shipments include finished automobiles, automotive parts, and merchandise in intermodal containers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
