1. Union Pacific Corp (NYSE:UNP)
Third Point Equity Stake: $418.7 Million
Number of Hedge Fund Holders: 105
Stock Upside Potential: 12.06%
Market Cap: $158 Billion
Union Pacific Corp (NYSE:UNP) is one of the best large cap stocks to buy in 2026 according to billionaire Dan Loeb. This railroad stock has gained roughly 20% over the past six months, and Street forecasts show it has more room to rise.
Union Pacific Corp (NYSE:UNP) and Norfolk Southern Corp (NYSE:NSC) want to merge, but they face opposition from their rival, Canadian National Railway (CN). On May 11, CN called on regulators to reject Union Pacific’s acquisition of Norfolk Southern. It outlined several reasons for its opposition to the merger, including that it fails to address competition concerns as required.
According to CN, the amended merger application that Union Pacific submitted only addresses one issue out of the three that the regulator pointed out. Additionally, CN said that the pricing program that the merger parties have proposed to preserve competition falls short of addressing the regulator’s concerns.
However, Union Pacific and Norfolk Southern insist that their merger is good for the industry. In the amended application, the companies said their combined railroads would deliver a faster, more reliable service and save shippers roughly $3.5 billion annually.
If approved, the Union Pacific-Norfolk Southern merger will result in America’s first transcontinental railroad with more than 50,000 miles of track network. Union Pacific hopes to close the transaction in early 2027.
Nebraska-based Union Pacific Corp (NYSE:UNP) is a railroad operator supporting freight shipping, logistics operations, and railroad transportation. It operates more than 32,000 miles of rail track network that links major US ports to Mexico gateways. Founded in 1862, Union Pacific Corp’s operations cover 23 states.
While we acknowledge the potential of UNP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than UNP and that has 100x upside potential, check out our report about the cheapest AI stock.
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My name is Inan Dogan. I’m the co-founder and Research Director of Insider Monkey. I have an important message for you today.