Ray Dalio Stock Portfolio: 10 New Stock Picks

4. Union Pacific Corporation (NYSE:UNP)

Share Price Performance (Sep 30 – Jan 16): -2.91%

Bridgewater Associates Stake Value: $46 million

Number of Hedge Fund Holders: 99

CoreWeave Inc. (NASDAQ:CRWV) ranks among the 10 best new stocks to buy in Ray Dalio’s portfolio. On January 7, BMO Capital downgraded Union Pacific Corporation (NYSE:UNP) from Outperform to Market Perform and cut its price target to $255 from $270. The revision comes as BMO describes Union Pacific’s planned merger with Norfolk Southern as “one of the most consequential developments in the rail industry in decades.”

The firm noted increased regulatory uncertainty around the merger, which has the potential to impact the marketplace and the regulatory framework that governs U.S. railroads. The downgrade further points to persistent softness in freight demand, prompting BMO Capital to take a more cautious position on Union Pacific Corporation (NYSE:UNP), despite the merger proposal describing potentially attractive earnings and free cash flow under favorable conditions.

In addition to the merger, Union Pacific Corporation (NYSE:UNP) intends to set up the Mainline Texas Industrial Park, a 2,000-acre facility near Houston that will include both rail and non-rail industrial and commercial facilities.

Union Pacific Corporation (NYSE:UNP) is one of the largest railroad operators in the United States. It transports a wide range of goods, including grain, food items, fertilizers, coal, and renewable products.