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...

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