Joy Global recently cut its profit and revenue forecasts for the full year due to slowing commodity demand in China and the U.S. Thanks to China's slowing economy, mining companies are reducing spending on big-ticket items like mining equipment due to low commodity costs. Commodity prices are down over 20% since February. BHP Billiton has scaled back or postponed projects worth $50 billion in Australia. Analyst Brendan Byrnes explains what this means for these companies and major players like Caterpillar, and why commodity prices could be on track for a rebound soon.
This commodity rebound could make companies like Caterpillar attractive. Cat is the market-share leader in an industry in which size matters, and its quality products, extensive service network, and unparalleled brand strength combine to give it solid competitive advantages. But does that make Caterpillar a buy right now? Read all about Caterpillar's strengths and weaknesses in our brand-new report. Just click here to access it now.
Austin Smith has no positions in the stocks mentioned above. Brendan Byrnes owns shares of Caterpillar. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.