Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Has Joy Global Bottomed Out?

Cyclical stocks have a way of outdoing expectations both for good and bad. That makes it tricky to feel all that confident that Joy Global (NYSE:JOY) is bottoming out, particularly when there are still long-term issues with the coal market that makes up a large percentage of the company's equipment revenue base. What Joy Global has done, though, is significantly improved its manufacturing process and shifted its capital focus from M&A to returning cash to shareholders. Provided that coal isn't in perpetual decline as a global energy source, these shares could still have some appeal even after a 20% run from recent lows.

This Isn't A Recovery Yet

There is always that tension between what is going on...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details