What is outlook for USX (USX) and PPG (PPG)?
USX is actually one of our favorite choices in the steel industry. The analyst who covers steel has a positive investment outlook for the industry, which has been suffering from bloated inventories along with high levels of steel imports. But prospects have now gotten better because of a May, 1999, antidumping ruling that should bring down the level of imports and the fact that distributor inventories have been declining. Also, the auto industry uses a lot of steel, and it is doing well thanks to a strong U.S. economy. PPG Industries is one of our favorite choices in the chemicals industry. It is rated a 5-STARS because it is focusing its resources on higher growth areas in chemicals such as coatings, specialty chemicals, and fiberglass. Q: What do you think of Toll Brothers? A: Toll Brothers builds luxury homes. Unfortunately, the stock has been pretty badly battered over the past year because of concerns about interest rates and the maturity of the home building cycle. But there are
