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 1.2%. By the end of trading, USG fell $0.93 (-3.4%) to $26.20 on average volume. Throughout the day, 3,221,158 shares of USG exchanged hands as compared to its average daily volume of 2,175,700 shares. The stock ranged in price between $26.11-$27.19 after having opened the day at $26.71 as compared to the previous trading day's close of $27.13. Other companies within the Materials & Construction industry that declined today were: Real Goods Solar ( RSOL), down 4.3%, Argan ( AGX), down 3.8%, Tri-Tech ( TRIT), down 3.0% and A V Homes ( AVHI), down 2.2%.
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USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company operates in three reportable segments: North American Gypsum, Worldwide Ceilings, and Building Products Distribution. USG has a market cap of $2.8 billion and is part of the industrial goods sector. Shares are down 3.3% year to date as of the close of trading on Wednesday.

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, poor profit margins and generally higher debt management risk.

On the positive front, Patrick Industries ( PATK), down 18.2%, Comstock ( CHCI), down 12.7%, Goldfield ( GV), down 9.0% and Integrated Electrical Services ( IESC), down 8.3% , were all gainers within the materials & construction industry with Sherwin-Williams Company ( SHW) 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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