Is Union Pacific Stock Outperforming the S&P 500?

Omaha, Nebraska-based Union Pacific Corporation (UNP) operates in the railroad business. Valued at $178.6 billion by market cap, it connects 23 states in the western two-thirds of the U.S. by rail, providing a critical link in the global supply chain, hauling a variety of goods, including agricultural, automotive, and chemical products.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and UNP definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the railroads industry. UNP's expansive North American network, including its stake in Mexico's Ferromex and strong cross-border freight business, gives it a distinct competitive advantage and supports a diverse customer base. Its long-standing reputation for reliability has built strong brand loyalty and long-term contracts, driving stable revenues and long-term growth.

Despite its notable strength, UNP slipped 5.7% from its 52-week high of $315.99, achieved on Jul. 23. Over the past three months, UNP stock gained 13%, outperforming the S&P 500 Index’s ($SPX) marginal gains during the same time frame.

Shares of UNP rose 28.7% on a YTD basis and climbed 33.2% over the past 52 weeks, outperforming SPX’s YTD gains of 11.5% and 18.2% returns over the last year.

To confirm the bullish trend, UNP has been trading above its 200-day moving average since late April, with slight fluctuations. The stock has been trading above its 50-day moving average since late November, 2025, with minor fluctuations.

UNP outperformed market expectations by converting robust demand into growth through reliable operations and cost-efficiency. Additionally, strategic momentum advanced on the planned merger with Norfolk Southern Corporation (NSC) after securing an agreement to neutralize resistance from Canadian National.

On Jul. 23, UNP shares closed up more than 4% after reporting its Q2 results. Its adjusted EPS of $3.41 topped Wall Street expectations of $3.20. The company’s revenue was $6.9 billion, exceeding Wall Street forecasts of $6.7 billion.

In the competitive arena of railroads, CSX Corporation (CSX) has taken the lead over the stock, with a 37.4% gain on a YTD basis and a 53.2% uptick over the past 52 weeks. 

Wall Street analysts are reasonably bullish on UNP’s prospects. The stock has a consensus “Moderate Buy” rating from the 25 analysts covering it, and the mean price target of $333.26 suggests a potential upside of 11.9% from current price levels.