Union Pacific's (NYSE:UNP) 9.6% CAGR outpaced the company's earnings growth over the same five-year period

Simply Wall St.11-08

The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Union ...

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Unfortunately for shareholders, while the Union ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/transportation/nyse-unp/union-pacific/news/union-pacifics-nyseunp-96-cagr-outpaced-the-companys-earning\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Union Pacific's (NYSE:UNP) 9.6% CAGR outpaced the company's earnings growth over the same five-year period</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nUnion Pacific's (NYSE:UNP) 9.6% CAGR outpaced the company's earnings growth over the same five-year period\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-08 02:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/transportation/nyse-unp/union-pacific/news/union-pacifics-nyseunp-96-cagr-outpaced-the-companys-earning><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The main point of investing for the long term is to make money.  But more than that, you probably want to see it rise more than the market average.  Unfortunately for shareholders, while the Union ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/transportation/nyse-unp/union-pacific/news/union-pacifics-nyseunp-96-cagr-outpaced-the-companys-earning\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"UNP","symbol_name":"联合太平洋","start_time":0,"source_url":"https://simplywall.st/stocks/us/transportation/nyse-unp/union-pacific/news/union-pacifics-nyseunp-96-cagr-outpaced-the-companys-earning","article_id":"2481162124","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/310078-main-header/1585187767002"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481162124","pubTimestamp":1731002617,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"The main point of investing for the long term is to make money. But more than that, you probably want to see it rise...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"UNP":"联合太平洋","NYSE":"纽交所"},"translate_title":"联合太平洋公司(NYSE：UNP)9.6%的复合年增长率超过了该公司同期五年的盈利增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NYSE":1,"UNP":1},"content_text":"The main point of investing for the long term is to make money.  But more than that, you probably want to see it rise more than the market average.  Unfortunately for shareholders, while the Union Pacific Corporation (NYSE:UNP) share price is up 42% in the last five years, that's less than the market return.   Looking at the last year alone, the stock is up 17%.      The past week has proven to be lucrative for Union Pacific investors, so let's see if fundamentals drove the company's five-year performance.   View our latest analysis for Union Pacific   There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance.  By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.   Over half a decade, Union Pacific managed to grow its earnings per share at 5.2% a year.   This EPS growth is slower than the share price growth of 7% per year, over the same period.  So it's fair to assume the market has a higher opinion of the business than it did five years ago.  That's not necessarily surprising considering the five-year track record of earnings growth.   The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). NYSE:UNP Earnings Per Share Growth November 7th 2024 It's probably worth noting that the CEO is paid less than the median at similar sized companies.  It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years.  This free interactive report on Union Pacific's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.   What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested.  It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend.  As it happens, Union Pacific's TSR for the last 5 years was 58%, which exceeds the share price return mentioned earlier.  This is largely a result of its dividend payments!  A Different Perspective Union Pacific shareholders are up 20% for the year (even including dividends).  Unfortunately this falls short of the market return.    On the bright side, that's still a gain, and it's actually better than the average return of 10% over half a decade  This could indicate that the company is winning over new investors, as it pursues its strategy.        I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too.   Consider for instance, the ever-present spectre of investment risk.   We've identified 1 warning sign  with Union Pacific , and understanding them should be part of your investment process.    Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481162124"}