Union Pacific Has Long-Term Growth Prospects
The latest results from west coast railroad Union Pacific (NYSE: UNP) didn't bring any major near-term surprises, and the stock remains a decent option for income-seeking investors looking for a place to park some cash. However, the question with the railroads is always whether there is any catalyst for an improvement in long-term earnings. Fortunately, the answer to that question is yes, and here's why.
Let's start with the most obvious factor, namely Union Pacific's attempts to lower its operating expenses compared to its revenue. The operating ratio (OR) is a key metric in the railroad industry. It's simply operating expenses divided by revenue, so a lower number is better.
Image source: Getty Images.
Source Fool.com
