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 down 0.7%. By the end of trading, USG fell 29 cents (-1.1%) to $25.47 on light volume. Throughout the day, 1.8 million shares of USG exchanged hands as compared to its average daily volume of 2.8 million shares. The stock ranged in price between $25.44-$26.11 after having opened the day at $25.69 as compared to the previous trading day's close of $25.76. Other companies within the Industrial Goods sector that declined today were: China Valves Technology ( CVVT), down 23.3%, NF Energy Saving ( NFEC), down 22.4%, Ecotality ( ECTY), down 18.2%, and Clean Diesel Technologies ( CDTI), down 15.8%.
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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 $2.8 billion and is part of the materials & construction industry. The company has a P/E ratio of -12.9, below the S&P 500 P/E ratio of 17.7. Shares are up 156.8% year to date as of the close of trading on Monday. Currently there are six analysts that rate USG a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates USG as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, generally higher debt management risk and poor profit margins.

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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