USG Corp (USG): Today's Featured Materials & Construction Winner

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 higher today making it today's featured materials & construction winner. The industry as a whole closed the day down 1.2%. By the end of trading, USG rose $0.31 (1.1%) to $28.12 on average volume. Throughout the day, 2,833,093 shares of USG exchanged hands as compared to its average daily volume of 2,055,400 shares. The stock ranged in a price between $27.87-$29.10 after having opened the day at $28.06 as compared to the previous trading day's close of $27.81. Other companies within the Materials & Construction industry that increased today were: Guanwei Recycling ( GPRC), up 10.6%, Dycom Industries ( DY), up 8.6%, Tri-Tech ( TRIT), up 6.6% and Skyline Corporation ( SKY), up 6.1%.
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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 $3.0 billion and is part of the industrial goods sector. Shares are down 0.9% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate USG a buy, no analysts rate it a sell, and 7 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, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk.

On the negative front, Real Goods Solar ( RSOL), down 13.8%, Empresas ICA S.A.B. de C.V ( ICA), down 8.2%, Comstock ( CHCI), down 7.6% and NCI Building Systems ( NCS), down 7.2% , were all laggards within the materials & construction industry with PulteGroup ( PHM) being today's materials & construction industry laggard.

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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