Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mining equipment maker Joy Global
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 (1884)|
|Market Cap||$9.87 billion|
|Industry||Construction and farm machinery|
|Trailing-12-Month Revenue||$3.66 billion|
|Management||CEO Michael Sutherlin (since 2006)
CFO Michael Olsen (since 2008)
|Return on Equity (Average, Past 3 Years)||53.6%|
|Cash / Debt||$819.5 million / $401 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 1,567 members who have rated Joy Global believe the stock will outperform the S&P 500 going forward. These bulls include kingofdice and All-Star DarthMaul09, who is ranked in the top 1% of our community.
Just last month, kingofdice touched on the powerful tailwind working in Joy Global's favor: "Present and future energy demands will require quality mining machinery."
Joy Global in particular boasts a robust three-year average operating margin of 18.6%. That's higher than that of other heavy equipment companies like Bucyrus (16.6%), Caterpillar (7.4%), and Deere
CAPS All-Star DarthMaul09 expands on the outperform case:
The smarter mining companies will understand that their recent US dollar profits will become less valuable over time as the US dollar index gradually falls... . Therefore it would be in their best interest to use their recent dollar profits to buy junior mining companies and purchase the equipment that they will need to begin these new projects before the US dollar loses too much of its buying power. Companies like [Joy Global] and [Caterpillar] should benefit in the near term even if the overall market begins to show some weakness due to rising oil prices.
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