4-Star Stocks Poised to Pop: Joy Global
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 (NAS: JOYG) has earned a respected four-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 (1884)|
|Market Cap||$7.3 billion|
|Industry||Construction and farm machinery|
|Trailing-12-Month Revenue||$3.83 billion|
|Management||CEO Michael Sutherlin (since 2006)|
CFO Michael Olsen (since 2008)
|Return on Capital (Average, Past 3 Years)||28.7%|
|Cash/Debt||$1.07 billion / $401.2 million|
Caterpillar (NYS: CAT)
Ingersoll-Rand (NYS: IR)
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
A few months ago, MOTV8 touched on the global tailwinds working in the stock's favor: "China opens a coal mine every week and Joy's equipment is in huge demand with the world seeking more & more mineral extraction."
Over the next five years, in fact, Joy Global is expected to grow its bottom line at a brisk rate of 20.4% annually. That's faster than that of industry peers like Caterpillar (17.5%), Ingersoll-Rand (15.7%), and Deere (NYS: DE) (10.8%).
CAPS member Joulesh elaborates on the bull case:
JOYG has a huge market share and with the crisis with nuclear power in Japan, we won't see coal get replaced by nuclear anytime soon. The emerging markets need coal, they are growing at a fast rate, and China will be on a cycle of acquiring coal. ... I also like that JOYG makes money off of maintenance on their equipment which should give them some nice safe earnings to help when sales are off a bit. They have a lot of free cash, so I see huge dividend increases in the horizon. ... So this is a great company to me, a good balance between value and growth, but it is fairly volatile ... maybe cash out when it hits $145 or so.
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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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 Fool's disclosure policy always gets a perfect score.
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