Union Pacific Corporation (UNP): Billionaire Seth Klarman Likes This Railroad Stock

Union Pacific Corporation (NYSE:UNP) is one of the 15 Best Stocks to Buy According to Billionaire Seth Klarman.

Union Pacific Corporation (NYSE:UNP) is a recent addition to the 13F portfolio of Baupost Group. The fund owned a stake in the railroad firm back in the second quarter of 2023, but disposed of it in the subsequent quarter. A new position was opened in the stock in the third quarter of 2025, consisting of 1.5 million shares. In the fourth quarter, this holding was increased by close to 9% to 1.63 million shares. This stake accounts for nearly 7% of the 13F portfolio of Baupost. In earnings for the fourth quarter of 2025, Union Pacific said it was planning $3.3 billion for 2026 capital improvements, expected to improve operating ratio versus 2025.

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Union Pacific Corporation (NYSE:UNP) management also acknowledged macroeconomic headwinds, noting that the S&P Global’s 2026 economic estimates in key areas such as industrial production, housing starts and auto sales had deteriorated. Specific to 2026, the earnings outlook was set at the mid-single-digit range amid volume and cost headwinds.

Union Pacific Corporation (NYSE:UNP) operates in the railroad business in the United States. It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers, and construction products.

While we acknowledge the risk and potential of UNP as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNP and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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