Saturday, March 30, 2013

Why Joy Global Is Poised to Bounce Back

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.

PepsiCo facts

Headquarters (founded)

Milwaukee, Wis. (1884)

Market Cap

$6.3 billion

Industry

Farm and construction machinery

Trailing-12-Month Revenue

$5.7 billion

Management

CEO Michael Sutherlin (since 2006)

CFO James Sullivan (since 2012)

Return on Equity (average, past 3 years)

34.4%

Cash/Debt

$269.9 million / $1.4 billion

Dividend Yield

1.2%

Competitors

Caterpillar

Ingersoll-Rand

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

On CAPS, 97% of the 1,662 members who have rated Joy Global believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, Nehams, succinctly summed up the bull case for our community:

Joy Global isn't sitting on its hands while the Chinese mining markets take time to revive. It is hauling up operations, improving margins, and cleaning up its balance sheet. In short, a leaner and stronger Joy Global is on its way, to arrive bang on time as the markets pick up. Takeover rumors are getting hotter too. At a P/E that's close to its 5-year average, long-term investors should see a lot of value in this company when business cycles turn.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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