$113.18
1.55 (+1.39%)
Union Pacific Corp (NYSE:UNP)
CAPS Rating:
Union Pacific is a leading rail freight carrier, its UP Railroad covering more than 32,000 miles in 23 states.
Union Pacific is a leading rail freight carrier, its UP Railroad covering more than 32,000 miles in 23 states.
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Recs
Here's what I see going forward. Its murky at best and at worst, speculating.But our whole model of transportation will be changed as markets become more inward focused. Say bye to Greek shippers. Forget about importing stuff from China at a disproportionate rate.Instead, we're going to start building stuff domestically (via "tariffs" or economic sense) and that will make it a boon for railways (already have infrastructure in place).I'm early on this pick, but wanted to put up another railway up. The rest, if I remember, will be put up later (maybe when some go to P/E in single digits)
My concern about railways is their infrastructure. There aren't enough lines anymore. In some small "railroad" towns the trains go by constantly. It may be efficient for all 6 carriers to use those same lines, but it doesn't look like a growth industry in the long run. Unless the new administration opts to make rail a part of their commitment to re-build infrastructure, and creates more rail lines AND gives incentives to create more efficient engines, this is probably not a good long-term investment.