Why Joy Global Is Ready to Rebound

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mining equipment maker Joy Global (NYSE: JOY  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Joy Global and see what CAPS investors are saying about the stock right now.

Joy Global facts

 

 

Headquarters (founded)

Milwaukee, Wis. (1884)

Market Cap

$5.6 billion

Industry

Farm and construction machinery

Trailing-12-Month Revenue

$5.5 billion

Management

CEO Michael Sutherlin (since 2006)

CFO James Sullivan (since 2012)

Return on Equity (average, past 3 years)

34.2%

Cash/Debt

$234.9 million / $1.4 billion

Dividend Yield

1.3%

Competitors

Caterpillar 

Ingersoll-Rand

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 98% of the 1,655 members who have rated Joy Global believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, Googlespooch, tapped Joy Global as a particularly attractive turnaround play:

As China begins to improve and stabilize, it will continue to be its coal-happy self and consume increasing amounts of coal. Even better, Joy has a better grip on China than Caterpillar and is working to improve that position through acquisitions over the last couple of years. In addition to China, India also has a penchant for coal in order to fuel its operations. Besides all of that, natural gas prices are beginning to increase. With natural gas prices increasing, utility and energy-producing companies will be less inclined to make full switches to natural gas and will likely continue to utilize coal in their operations. Hopefully, all of this will help to drive sales of Joy's heavy mining equipment. Although the company may suffer some in upcoming quarters, I believe that, long-term, the company may have something going for them.

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