Most sectors of the S&P 500 have been caught in the market sell-off lately, with all except utilities in the red for the year. #-ad_banner-#The market rout has left one staple of American progress down 12% year to date. But it has been battered, along with its entire sector, for nearly a year. Shares now trade for a 30% discount to their long-term P/E ratio, while numerous catalysts are lining up for a rebound. Relief On The Horizon For Rail Stocks Weak commodity prices (especially for coal), falling industrial output and strength in the U.S. dollar have taken… Read More
Most sectors of the S&P 500 have been caught in the market sell-off lately, with all except utilities in the red for the year. #-ad_banner-#The market rout has left one staple of American progress down 12% year to date. But it has been battered, along with its entire sector, for nearly a year. Shares now trade for a 30% discount to their long-term P/E ratio, while numerous catalysts are lining up for a rebound. Relief On The Horizon For Rail Stocks Weak commodity prices (especially for coal), falling industrial output and strength in the U.S. dollar have taken a major toll on railroad stocks. The Dow Jones U.S. Railroads Index has fallen roughly 40% in the past 12 months. Union Pacific (NYSE: UNP) — the No. 1 railroad company in the United States with 32,000 route miles running across 23 states in the western two-thirds of the country — is no exception. Earlier this month, UNP slid 3.5% in one day after it reported dismal fourth-quarter results. While pricing was 3.5% higher year over year, volume sank 9% and earnings per share fell 19%. Shares are now 45% off their 52-week high, set in February, and… Read More