Union Pacific's (NYSE: UNP) fourth-quarter earnings report was eagerly anticipated for a few reasons. First, railroads are a key bellwether of the economy, and second, investors were keen to see whether the company would be able to keep increasing its profitability even in an economic slowdown. On both fronts the message was positive, and the conclusions drawn from the earnings are good ones for investors in railroad stocks. Let's take a closer look at why.
The investment thesis that there's going to be a recovery in the industrial economy in the second half of 2020 received further support from Union Pacific. Management of East Coast railroad CSX (NASDAQ: CSX) had already expressed confidence on the matter, claiming that its first quarter would be the low point from a growth perspective.
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Source Fool.com