Technical Analysis on USG and Masco: Building Material Stocks Begin to Look Up

Technical Analysis on USG and Masco: Building Material Stocks Begin to Look Up

  PR Newswire

  LONDON, February 6, 2013

LONDON, February 6, 2013 /PRNewswire/ --

The housing sector is finally looking up and the stocks are currently enjoying
an upward ride. While major builders are going to be the biggest beneficiaries
of the upturn, material supplying stocks like USG Corporation (NYSE: USG) have
also started showing signs of changing macro environment and have set new high
stock prices. However, the scenario is not all that rosy. The housing sector,
despite showing improvement, is likely to take a long time to get back to its
full potential and in the meantime, major companies like Masco Corporation
(NYSE: MAS) are undertaking steps to contain their costs and enhance margins.
StockCall professionals have initiated technical research on USG Corp. and
Masco Corp., and these free reports are available by registering now at

USG Corporation Hits 52-Week High

USG Corporation stock hit a 52-week high recently and is on an upward
trajectory. The company is set to benefit from recent uptick in the housing
sector. USG deals in roofing, flooring and wall products and is a market
leader in wallboard segment. The company is set to announce its fourth quarter
financial number today and it is likely to report a 4.8 percent growth in the
revenue to $786.1 million. However, its EPS is expected to remain in negative
territory at -$0.27. The company had been incurring losses since 2007, but the
quantum has declined over the years. For today's free research report on USG
(pre-earnings), sign up at

USG Corporation is better placed to ride out housing sector recovery as it is
not tied to any particular segment. In this regard, the stock is less
speculative than the homebuilding stocks. The housing sector seems to be
recovering but it is likely to take some time to get back to its old peak.
Similar pattern is likely to be shown by the allied stocks and thus there is
good upside to these stocks. USG Corporation stock has grown about 6 percent
this year so far, and it is favored by Warren Buffett, who holds a 16 percent
interest in the company. USG Corporation offers good investment venue as it
benefits from improved economy and resulting surge in construction and
remodeling activities.

Masco to Cut Costs

Masco Corporation deals in home improvement and building material and it hit a
new 52-week high recently as well. The company is operational in the United
States and Europe but it draws most of its revenue from the U.S. The stock was
recently upgraded from Neutral to Outperform by Credit Suisse, which now
expects the stock to touch $22 in the near future. Masco Corporation stock has
grown more than 40 percent in past 12 months and offers modest dividend yield
of 1.63 percent, making this stock an attractive investment option. Register
now to get the complete report on Masco free of charge at

Masco Corporation is also planning to restructure its business in a big way.
It has plant closures and business consolidation on cards. The company may
also reduce its workforce and optimize its supply chain to reduce overheads.
Masco Corporation had the target of reducing its gross costs by $175 million
in 2012. These steps are expected to have long term impact on the stock price.
Coupled with improving economic scenario, these positive changes may enhance
the profitability of the firm.

Masco will be reporting its financial results on February 11 ^th , 2013.

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