Score 8.4 (out of 10): UNION PACIFIC sets up for +9.6% rally in 3 months

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What’s Going On Here?

UNION PACIFIC shares have rallied +139% since the coronavirus crash and the stock is just making a new all-time high. With high energy costs and a shortage of truckers, rail transport is a cheaper alternative.

Why Now?

UNION PACIFIC CORP has triggered a new high volatility signal (1 month). During similar occasions, UNION PACIFIC CORP shares had a median return of +9.6%, over the following 3 months – based on 10 historical occasions with 9 of those showing positive returns (90%). This buy signal for UNION PACIFIC CORP received a high score of 8.4 (out of 10). This insight was generated on 2022-February-16 with last price of 253.81.

What’s This Company About?

UNION PACIFIC CORP is in the Transport-Rail business. Based on the last 2 years’ risk/return profile, this asset is seen as Less Risky. ‘Wall Street’ analysts think the stock price will be worth +7.9% (average). Ticker symbol: UNP US.

What’s My Risk / Reward and Time Horizon?

We found 3 months to be the optimal trade horizon, after testing a number of possible alternatives (accuracy of previous returns). Otherwise consider closing out this trade once the target level of 278.14 (+9.6%) has been reached. Based on UNION PACIFIC CORP’s recent up and down swings, LongShortBets suggests considering to set a stop loss level for this insight at 247.01 (last price at 253.81), which is equivalent to a -2.7% decline.

Returns during similar periods:

The chart above shows the previous returns (in %) based on similar setups with the most recent ‘insight’ shown under (1), the second most recent ‘insight’ shown under (2), etc. 

Previous episodes:

33.7% (March-2020), 5.9% (August-2019), 9% (December-2018), 12.2% (February-2018), -0.5% (December-2017), 14.7% (October-2017), 10.2% (November-2016), 20.6% (February-2016), 0.6% (August-2015), 1.9% (December-2014).

Historical Chart:

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Summary:

NameUNION PACIFIC CORP
ViewUp
Star (1 to 10)8.4
Target+9.6%
Time3 months
Hist Rate90%

Popular Insights:

INFOSYS has denied that the company is launching a crypto project. But the company continues to expand aggressively in Costa Rico. ‘Wall Street’ analysts’ think the shares will rally +22% over the next 12 months.

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