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Industry is what defines the human race, a species of doers. If a bridge needs to be built, it's built. If a road needs to be repaired, it's repaired. If an air plane needs to be fixed, it's fixed. And even with a global economic slowdown on the horizon, industry will remain the keystone of the world economy. But industrial stocks aren't for the risk intolerant investor, because with such sensitivity to overall economic conditions, volatility is abundant in these stocks.

Macroeconomic chaos has scarred off investors left and right lately, creating some great bargains for those value investors out there. If you feel strong enough to deal with sharp, unpredictable price movements in either direction, take a look at these three industrial companies which seem too cheap to pass up.

Joy Global, Inc. (JOY)

  • Market Cap: $5.52 billion
  • Current Share Price: $52.11
  • 52 Week Range: $52.00-$101.44
  • P/E: 7.94
  • PEG: 0.41
  • Price/Book Value: 2.47
  • Operating Margin: 21.28%
  • Profit Margin: 13.62%
  • Return On Equity: 35.77%
  • Total Cash: $390.98 million
  • Total Debt: $1.64 billion
  • Current Ratio: 1.68
  • Dividend (%): $0.70 (1.30%)
  • Dividend Payout Ratio: 11.00%
  • 52 Week % Change: -42.03%

(Find more stats here.)

Yahoo Finance Business Summary: "Joy Global Inc. engages in the manufacture and servicing of mining equipment for the extraction of coal, copper, iron ore, oil sands, and other minerals. The company operates in two segments, Underground Mining Machinery and Surface Mining Equipment... The company serves mining companies worldwide. Joy Global Inc. was founded in 1884 and is headquartered in Milwaukee, Wisconsin."

Cummins Inc. (CMI)

  • Market Cap: $17.11 billion
  • Current Share Price: $89.82
  • 52 Week Range: $79.53-$129.51
  • P/E: 8.81
  • PEG: 0.81
  • Price/Book Value: 2.87
  • Operating Margin: 11.92%
  • Profit Margin: 10.50%
  • Return On Equity: 35.58%
  • Total Cash: $1.57 billion
  • Total Debt: $683.00 million
  • Current Ratio: 2.02
  • Dividend (%): $1.60 (1.80%)
  • Dividend Payout Ratio: 14.00%
  • 52 Week % Change: -10.80%

(Find more stats here.)

Yahoo Finance Business Summary: "Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products worldwide. It operates in four segments: Engine, Components, Power Generation, and Distribution... The company sells its products to original equipment manufacturers, distributors, and other customers. Cummins Inc. was founded in 1919 and is headquartered in Columbus, Indiana."

Eaton Corporation (ETN)

  • Market Cap: $12.48 billion
  • Current Share Price: $37.09
  • 52 Week Range: $33.09-$53.23
  • P/E: 9.24
  • PEG: 0.83
  • Price/Book Value: 1.62
  • Operating Margin: 10.37%
  • Profit Margin: 8.48%
  • Return On Equity: 17.45%
  • Total Cash: $811.00 million
  • Total Debt: $3.76 billion
  • Current Ratio: 1.65
  • Dividend (%): $1.52 (4.00%)
  • Dividend Payout Ratio: 35.00%
  • 52 Week % Change: -25.05%

(Find more stats here.)

Yahoo Finance Business Summary: "Eaton Corporation operates as a diversified power management company worldwide. The company provides electrical components and systems for power quality, distribution, and control; hydraulics components, systems, and services for industrial and mobile equipment; aerospace fuel, hydraulics, and pneumatic systems for commercial and military use; and truck and automotive drivetrain and powertrain systems for performance, fuel economy, and safety... Eaton Corporation sells its products to customers in approximately 150 countries. The company was founded in 1916 and is headquartered in Cleveland, Ohio."

Strictly by the numbers, all of these companies seem like great deals right now. Strong margins, balance sheets, and cheap valuations indicate some very tempting investments. They've all been beaten up pretty badly by Mr. Market in the time span of one year, with Cummins coming out as the least scathed with a decline of nearly 11%.

In the past three months alone, these companies have each slipped at least 25% in share price, which could present an excellent buying opportunity. And the icing on the cake is the dividend that each company pays, with extremely low payout ratios too. One can argue that Joy Global and Cummins's dividends (1.3% and 1.8%, respectively) are too meager to be taken seriously, but with payout ratios below 15%, there is so much room for growth.

Let's also keep in mind that these companies have survived various economic climates as they've been in business for nearly 100 years (128 years for Joy Global). And if the worst is over, as many believe it is, then these companies have bright days ahead of them. So looking at a glass which is half full, it seems like these stocks are absolute bargains at basement prices.

If value investors have learned anything from the legendary Warren Buffet, it's this: Buy on market fear, and hold for as long as possible (until the stock is overpriced). This strategy has worked for Buffet for as long as he's been investing, which seems like forever; and he's done pretty well for himself. So if you want to invest like the Oracle of Omaha, do a little more research on these discounted stocks, which seem ripe for the picking.

Source: 3 Industrial Stocks For Bargain Hunters