Warren Buffett Favorite USG Shares Rally

Shares of building materials company USG are among the biggest market rally stocks on Wednesday, a day after CSX and Alcoa provide a jolt to the U.S. economy.
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NEW YORK (

TheStreet

) -- Shares of

USG

(USG)

are rallying on Tuesday amid the optimistic trading that followed the first major corporate earnings of the season, from

Alcoa

(AA) - Get Report

and

CSX

(CSX) - Get Report

.

Shares of USG were recently trading at a gain of 10%, or $1.22, to a share price near $13.50.

USG, a major player in the building materials segment for the residential and commercial construction industries, has been a long-time portfolio holding of

Berkshire Hathaway

(BRK.B) - Get Report

.

Not all investors, of course, hold USG for

Warren Buffett's

preferred holding period of "forever." USG is also a stock where Warren Buffett and Wall Street are typically at odds, with the consensus Street view of USG tilted to the negative.

USG has been a volatile stock in recent trading.

At the end of June, USG shares dropped 8.6%, the most since Oct. 21, after Credit Suisse maintained an "underperform" rating, saying the building material company's revenue might be hurt by falling wallboard prices.

USG shares fell to a recent low of $11.50 at the beginning of July, and haven't been above the 13% mark since the Credit Suisse rating update.

The building materials company remains well of its 52-week high, reached in May, above $25.

-- Written by Eric Rosenbaum from New York

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