Union Pacific Corporation (NYSE:UNP) is one of the stocks on Jim Cramer’s radar. During the episode, a caller sought Cramer’s thoughts on the stock, and he said:
Union Pacific has just had a parabolic move. I always point out that transports have parabolic moves, too. When I see a parabolic move, I just don’t recommend it. Parabolic means it’s going straight up. I cannot recommend a stock I really like, Union Pacific, until it goes lower. And my work would say that you can’t buy this $265 stock until it goes down at least $30.
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Union Pacific Corporation (NYSE:UNP) operates in the railroad business, transporting a variety of goods, including agricultural products, chemicals, construction materials, energy products, and vehicles. Cullen Capital Management, LLC stated the following regarding Union Pacific Corporation (NYSE:UNP) in its fourth quarter 2025 investor letter:
Union Pacific Corporation (NYSE:UNP) is one of North America’s largest Class I railroads, operating a premier network across the western two-thirds of the United States that connects key ports, industrial hubs, and population centers. The company benefits from a structurally advantaged network with long haul lengths, dense freight mix, and strong exposure to intermodal, industrial, and agricultural end markets, supporting durable pricing power and margin potential. A key catalyst is the increasing likelihood 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 earnings growth profile. Even on a standalone basis, Union Pacific is positioned for continued operating ratio improvement driven by labor productivity gains, network efficiency initiatives, and catch-up pricing as contracts reset. Management’s execution track record and robust free cash flow generation provide flexibility for capital returns while continuing to invest in service and reliability. As merger clarity improves, the market is likely to re-rate the shares to reflect a differentiated long-term growth opportunity and enhanced earnings power. Overall, Union Pacific combines high-quality assets, visible operational momentum, and compelling strategic optionality that support an attractive investment outlook. The stock trades at 18x forward earnings and offers a 2.4% dividend yield.
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