Earlier I mentioned that Union Pacific Corporation (UNP) is up 6% for my Blue Chip Growth subscribers in only one month. I just added the company to my Buy List in August and I want you to get familiar with its inner workings so that you can see the kind of stock recommendations I make.
In my Blue Chip Growth Buy List, I divide my recommendations into three categories: Conservative, Moderately Aggressive and Aggressive. Union Pacific falls into the Conservative list. UNP is the leading rail freight carrier in the U.S. If it sounds familiar, flash back to your school days in history class. Union Pacific is the company that drove in the golden spike in Utah to complete the first-ever transcontinental railroad line. But if you think the age of the iron horse has passed, think again!
Gas prices have forced more truckers to permanently park their rigs, and have left companies looking for more cost-effective ways to transport goods–and rail traffic has been their solution of choice. Also helping rail stocks are booming U.S. exports. As American exports soar, the railroad industry is experiencing a renaissance because of its easy access to the nation's ports. UNP's 32,200 route miles across 23 states in the western two-thirds of the U.S. all but ensures that any product destined for Asia has to take a trip on a Union Pacific train to get there...
The numbers say it all. In the second quarter, the company's earnings rose 24.4%, beating Wall Street estimates by more than 10%. During the same period, sale rose 12.8%. The company also recently increased its quarterly dividend from 23 cents to 27 cents per share. If you find yourself overexposed in the agriculture or energy sector, this is a great stock to help balance your portfolio. In the current environment of high fuel prices and booming American exports, Union Pacific is a fantastic buy.
Complete buy instructions for Union Pacific, my Top 5 Stocks for September and the entire Blue Chip Growth Buy List can be accessed immediately by my subscribers.