UNP

Union Pacific (UNP) is expected to report Q3 2026 earnings of $3.47 per share (up 12.7% YoY) with revenues projected at $7.12 billion (up 14% YoY), driven by freight revenue growth of 14.8%. However, lower shipment volumes, Middle East tensions, and supply-chain disruptions may pressure results. The company has a positive earnings surprise history and an Earnings ESP of +0.28% with a Zacks Rank #3.

IFRA is a smart beta ETF launched in 2018 that tracks the NYSE FactSet U.S. Infrastructure Index with over $4 billion in assets. Managed by BlackRock, it offers low expenses at 0.30% and focuses on U.S. companies with infrastructure exposure. The fund has performed well year-to-date with a 9.59% gain and maintains a 1.79% dividend yield, with top holdings including Caterpillar, Quanta Services, and Union Pacific.

The transportation sector is expected to see 9.6% earnings growth and 10.8% revenue growth in Q3 2026, driven by improving freight demand and cost-cutting initiatives. Four stocks identified as likely to beat earnings estimates are Union Pacific, United Parcel Service, Old Dominion Freight Line, and C.H. Robinson Worldwide, all showing positive Earnings ESP and strong historical beat records.