NEW YORK (TheStreet) -- Shares of USG Corp. (USG) are up 2.35% to $29.65 following a Barron's article over the weekend which said that "it typically takes a few months before the sound of shovels hitting dirt at a new housing project leads to pay dirt for [the] wallboard maker. The delay, however, bodes well for USG investors, who can expect to see the recent upswing in housing starts reflected in the company's results shortly."
USG, based in Chicago, also makes ceiling tiles and other building products, and "has climbed out of a deep hole since the housing market crashed. But its results have been depressed, as builders remain reticent to ramp up construction. That's created an opportunity," Barron's said.
Must Read: 50 Stocks Hedge Funds Love
- USG's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 3.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The gross profit margin for USG CORP is rather low; currently it is at 21.31%. Regardless of USG's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, USG's net profit margin of 6.01% compares favorably to the industry average.
- The debt-to-equity ratio is very high at 2.79 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, USG's quick ratio is somewhat strong at 1.46, demonstrating the ability to handle short-term liquidity needs.
- You can view the full analysis from the report here: USG Ratings Report
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV