USG Corp (USG): Today's Featured Industrial Goods 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 Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole closed the day down 0.7%. By the end of trading, USG rose $0.32 (1.3%) to $24.80 on light volume. Throughout the day, 1,628,255 shares of USG exchanged hands as compared to its average daily volume of 2,265,200 shares. The stock ranged in a price between $24.44-$25.07 after having opened the day at $24.61 as compared to the previous trading day's close of $24.48. Other companies within the Industrial Goods sector that increased today were: Continental Materials Corporation ( CUO), up 22.3%, China Recycling Energy Corporation ( CREG), up 16.3%, Guanwei Recycling ( GPRC), up 12.4% and China Ming Yang Wind Power Group ( MY), up 10.3%.
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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 $2.7 billion and is part of the materials & construction industry. Shares are down 12.8% 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, IntriCon Corporation ( IIN), down 12.7%, Industrial Services of America ( IDSA), down 9.1%, China BAK Battery ( CBAK), down 9.0% and Micronet Enertec Technologies ( MICT), down 7.4% , were all laggards within the industrial goods sector with Illinois Tool Works ( ITW) being today's industrial goods sector laggard.

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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