Trade-Ideas LLC identified USG ( USG) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified USG as such a stock due to the following factors:

  • USG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $73.9 million.
  • USG has traded 52,900 shares today.
  • USG is down 3.9% today.
  • USG was up 10.1% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in USG with the Ticky from Trade-Ideas. See the FREE profile for USG NOW at Trade-Ideas

More details on USG:

USG Corporation, through its subsidiaries, operates as a manufacturer and distributor of building materials worldwide. USG has a PE ratio of 21. Currently there are 3 analysts that rate USG a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for USG has been 2.0 million shares per day over the past 30 days. USG has a market cap of $2.6 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.92 and a short float of 10.1% with 2.37 days to cover. Shares are down 21.3% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates USG as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and poor profit margins.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Building Products industry. The net income increased by 733.3% when compared to the same quarter one year prior, rising from -$12.00 million to $76.00 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to other companies in the Building Products industry and the overall market on the basis of return on equity, USG CORP has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • Although USG's debt-to-equity ratio of 4.24 is very high, it is currently less than that of the industry average. Regardless of the company's weak debt-to-equity ratio, USG has managed to keep a strong quick ratio of 1.84, which demonstrates the ability to cover short-term cash needs.
  • USG's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 38.34%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, USG is still more expensive than most of the other companies in its industry.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.