Should I Buy UNP? UNP 2026 Analysis

Should You Buy Union Pacific Corp (UNP) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

232.220

1 Day change

1.98%

52 Week Range

253.200

Analysis Updated At

2026/01/26

Union Pacific Corp (UNP) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown stable financial growth and analysts maintain generally positive ratings, the current technical indicators, options sentiment, and recent news suggest caution. Additionally, the recent sale by Congress members and the delayed merger timeline introduce uncertainty. A hold strategy is recommended until clearer positive catalysts emerge.

Technical Analysis

The technical indicators for UNP are neutral to slightly bearish. The MACD is below 0 and negatively contracting, suggesting weak momentum. RSI is neutral at 51.281, and moving averages are converging, indicating no strong trend. Key support is at 222.202, and resistance is at 232.669. The stock is trading near resistance levels, which could limit upside potential in the short term.

Options Data

Bullish

Open Interest Put-Call Ratio

Neutral

Option Volume Put-Call Ratio

Options data indicates a slightly bearish sentiment with a higher put-call ratio in volume and open interest. Implied volatility is at 23.55%, with an IV percentile of 68.4, suggesting moderate uncertainty.

Technical Summary

Sell

Buy

Positive Catalysts

Analysts maintain generally positive ratings, with price targets ranging from $245 to $
Financial performance in Q3 2025 showed YoY growth in revenue (+2.51%), net income (+7.00%), and EPS (+9.45%).
Potential for accelerating operating leverage and EPS growth in the coming years.

Neutral/Negative Catalysts

The Surface Transportation Board rejected the merger application with Norfolk Southern, delaying the merger timeline and introducing uncertainty.
Congress trading data shows a recent sale transaction, indicating cautious sentiment.
Q4 earnings estimate was lowered to $2.89 per share, reflecting profitability pressures.
Weak industrial growth and travel demand volatility persist, as noted by analysts.

Financial Performance

Union Pacific's Q3 2025 financials showed solid YoY growth: Revenue increased by 2.51%, net income by 7.00%, and EPS by 9.45%. However, gross margin slightly declined by 0.33%. While the company demonstrates stable growth, the lowered Q4 earnings estimate and profitability pressures raise concerns.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts maintain a generally positive outlook, with several firms raising price targets (e.g., Barclays to $285, BofA to $266). However, Deutsche Bank downgraded the stock to Hold, citing concerns over merger opposition and less robust earnings beats. The consensus remains cautiously optimistic, but near-term uncertainties weigh on sentiment.

15 Analyst Rating

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 USD and a high forecast of 289 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.

9 Buy

6 Hold

0 Sell

Moderate Buy

Current: 227.710

Low

245

Averages

265.27

High

289

Current: 227.710

Low

245

Averages

265.27

High

289

JPMorgan

Neutral

downgrade

$270 -> $265

AI Analysis

2026-01-28

New

Reason

JPMorgan

Price Target

$270 -> $265

AI Analysis

2026-01-28

New

downgrade

Neutral

Reason

JPMorgan lowered the firm's price target on Union Pacific to $265 from $270 and keeps a Neutral rating on the shares.

TD Cowen

Buy

downgrade

$257 -> $255

2026-01-28

New

Reason

TD Cowen

Price Target

$257 -> $255

2026-01-28

New

downgrade

Buy

Reason

TD Cowen lowered the firm's price target on Union Pacific to $255 from $257 and keeps a Buy rating on the shares. The firm updated its model following Q4 results which saw steady execution and guidance that was roughly in-line with expectations.

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UNP Should I Buy

UNP Should I Buy

Should You Buy Union Pacific Corp (UNP) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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