Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mining equipment maker Joy Global (Nasdaq: JOYG) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Joy Global's business and see what CAPS investors are saying about the stock right now.
Joy Global facts
|
Headquarters (Founded) |
Milwaukee, Wis. (1884) |
|
Market Cap |
$5.5 billion |
|
Industry |
Construction and farm machinery and heavy trucks |
|
Trailing-12-Month Revenue |
$3.5 billion |
|
Management |
CEO Michael Sutherlin (since 2006) |
|
Return on Capital (Average, Past 3 Years) |
27.6% |
|
Cash / Debt |
$583 million / $535.3 million |
|
Dividend Yield |
1.4% |
|
Competitors |
Bucyrus International (Nasdaq: BUCY) |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 1,538 members who have rated Joy Global believe the stock will outperform the S&P 500 going forward. These bulls include rjzii and All-Star DarthMaul09, who is ranked in the top 2% of our community.
Just two weeks ago, rjzii highlighted the positive trends working for the stock: "Earnings forecasts for the year are up and dividends continue to be paid. The stock likely continue to see some gains over the next couple months but it will likely level off with the steady dividend payments being what makes this stock very attractive."
Caterpillar continues to dominate the global mining equipment market, while Joy Global, Terex, and Bucyrus round out the top four. Recently, though, Joy Global has been making some significant market share strides internationally, which should help offset some of the demand weakness it has been seeing domestically; around half of Joy Global's sales are to foreign markets.
Last month, DarthMaul09 tapped Caterpillar's recent success overseas as a sign of good things to come for Joy Global:
[Caterpillar's] sales growth in Asia suggests that the China slow down is just more propaganda from the Chinese government who is trying to limit the rise in commodity prices. Since I suspect that China is still trying to acquire more commodities and precious metals, the miners should remain profitable. This suggests that [Joy Global] will continue to supply needed products to financially healthy companies. Relative to the S&P 500, [Joy Global] should outperform the index.
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