What to Expect: The pros believe the railroad operator is on pace to improve on the year-ago second quarter profit of $2.10 to $2.35 this year.
Why It Matters: It might be a relic of a cliché, but it doesn’t make it not true — transportation stocks really do reflect the economy’s underlying health. If that’s the case, then Union Pacific (UNP) is saying North America’s economy is at least still improving somewhat. The company is in its fourth-consecutive year of rising earnings, and if the railroad company really does earn $2.35 for the latest quarter, it’s going to be the corporation’s best Q2 ever.
UNP continues to be one of the economic recovery’s best but most obscured leaders.