USG Corp (USG): Today's Featured Industrial Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

USG ( USG) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day up 1.1%. By the end of trading, USG fell 30 cents (-1.3%) to $23.22 on heavy volume. Throughout the day, 6.2 million shares of USG exchanged hands as compared to its average daily volume of 3.1 million shares. The stock ranged in price between $21.69-$23.40 after having opened the day at $22.79 as compared to the previous trading day's close of $23.52. Other companies within the Industrial Goods sector that declined today were: Skullcandy ( SKUL), down 16.4%, A123 Systems ( AONE), down 8.3%, Edwards Group ( EVAC), down 6.2%, and Continental Materials Corporation ( CUO), down 6.1%.
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USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. USG has a market cap of $2.41 billion and is part of the materials & construction industry. Shares are up 131.5% year to date as of the close of trading on Wednesday. Currently there are four analysts that rate USG a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates USG as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally high debt management risk and poor profit margins.

On the positive front, PMFG ( PMFG), up 11.1%, Argan ( AGX), up 9.2%, Gafisa ( GFA), up 8.8%, and Pall Corporation ( PLL), up 8%, were all gainers within the industrial goods sector with Cummins ( CMI) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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