Union Pacific Expands in Kansas City With New Lease Agreement

Union Pacific Corporation (UNP) is strengthening its presence in Kansas City through a newlease agreement with Jaguar Transport Holdings LLC. Per the deal, Union Pacific will lease about 12 acres of land and four miles of track in central Kansas City to Jaguar Transport. Through this partnership, UNP aims to offer short-line rail services in the Central Industrial District in Kansas City. This shall enhance customer service and boost regional economic growth.Jaguar Transport is a transportation logistics company engaged in short-line rail, warehousing and transload services. Apart from its short-line services, Jaguar owns a cold and dry storage warehouse adjacent to the leased property and is in the final stages of constructing a new transload facility on the site. This facility is anticipated to start accepting railcars in the near future, thereby widening the logistics capabilities in the area.Deal Benefits for UNPThe deal allows UNP to concentrate on the long-haul service from the site in central Kansas City while Jaguar will operate through its new shortline railroad, the Kansas City West Bottoms Railroad.The Kansas City West Bottoms Railroad will provide five-day-a-week short-haul services through which local businesses can easily connect to UNP’s extensive rail network. Overall, the new business partnership is expected to generate operational efficiencies and unique business opportunities for the greater Kansas City area.Kenny Rocker, executive vice president of marketing and sales for Union Pacific, stated, "Jaguar has a proven track record of providing premier customer service, and we believe this operating change will be a win for both railroads, our mutual customers and the local economy. Both parties have high expectations for growth under this exciting new deal."Zacks Rank and Price Performance of the UNP StockUNP currently carries a Zacks Rank #3 (Hold).Shares of Union Pacific have gained 3.5% so far this year, outperforming the Zacks Transportation - Rail industry’s 0.5% surge.UNP Stock YTD Price ComparisonImage Source: Zacks Investment ResearchStocks to ConsiderInvestors interested in the Zacks Transportation sector may also consider some better-ranked stocks like SkyWest SKYW and Frontier Group ULCC.SkyWestSkyWest currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.SKYW has an expected earnings growth rate of 16% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 16.7%. Shares of SKYW have risen 9.1% over the past six months.Frontier Group Frontier Group flaunts a Zacks Rank of 1 at present.ULCC has an expected earnings growth rate of more than 300% for the current year.The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average surprise is 1.1%. Shares of ULCC have surged 43% in the past six months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Union Pacific Corporation (UNP): Free Stock Analysis Report SkyWest, Inc. (SKYW): Free Stock Analysis Report Frontier Group Holdings, Inc. (ULCC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks