USG Corp (USG): Today's Featured Materials & Construction 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 Materials & Construction industry lower today making it today's featured Materials & Construction laggard. The industry as a whole closed the day up 0.1%. By the end of trading, USG fell 32 cents (-1.2%) to $26.54 on light volume. Throughout the day, 1.2 million shares of USG exchanged hands as compared to its average daily volume of 2.6 million shares. The stock ranged in price between $25.88-$26.90 after having opened the day at $26.90 as compared to the previous trading day's close of $26.86. Other companies within the Materials & Construction industry that declined today were: Tri-Tech ( TRIT), down 5.7%, MagneGas Corporation ( MNGA), down 5%, Casella Waste Systems ( CWST), down 3.7%, and Real Goods Solar ( RSOL), down 3.6%.
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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 $2.88 billion and is part of the industrial goods sector. Shares are up 163.6% year to date as of the close of trading on Tuesday. Currently there are five 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.

On the positive front, Continental Materials Corporation ( CUO), up 5.4%, Aegion ( AEGN), up 5.1%, Ecology and Environment ( EEI), up 4.8%, and Veolia Environnement ( VE), up 4.7%, were all gainers within the materials & construction industry with Louisiana-Pacific ( LPX) being today's featured materials & construction industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the materials & construction industry could consider SPDR S&P Homebuilders ETF ( XHB) while those bearish on the materials & construction industry could consider ProShares Short Basic Materials Fd ( SBM).

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