In the following video, Motley Fool industrials analyst Blake Bos takes a close look at Caterpillar (CAT +1.62%) and Joy Global (JOY +0.00%) to understand why these two heavy-machinery giants have been lagging the market. Blake takes a close look at inventory turnover with these two companies and paints a clear picture for investors about why inventory turnover is such an important factor to consider in this industry. He also highlights the effect that the mining sector's slowdown has had on the business models of these two companies, and he tells investors which of these two stocks he might find interesting today.
What's really dragging these two industrial giants down on the market?
About the Author
A home grown Kansan and largely self taught investor. I wouldn't classify myself by any particular investing style, just opportunistic. My dream investment would have a greater than 10% free cash flow return on enterprise value and be growing at above industry average rates. Some of my favorite industries to watch right now are: alternative energy, manufacturing, agriculture, infrastructure, and media content production companies. Follow me on any of the social media websites below for the most important 3D printing industry developments and other great stories.