Machinery Stocks That Have at Least Doubled

1. Bucyrus(BUCY) makes equipment to extract coal, copper, oil sands and other minerals. It sells electric mining shovels, blasthole drills and draglines. Its stock has delivered annualized gains of 35% since 2007, depicted in the chart below.

Quarter: Fourth-quarter profit gained 24% to $81 million, or $1.07, as revenue fell 11% to $646 million. The operating margin expanded from 16% to 18%. Bucyrus holds $102 million of cash, translating to a quick ratio of 1.5, and $507 million of debt.

Stock: Bucyrus has quadrupled in the past year, outperforming U.S. indices. The stock trades at a price-to-projected-earnings ratio of 13, a 41% discount to its peer-group average. It is costly when considering book value and sales per share.

Consensus: Of the 19 analysts following Bucyrus, 13 advocate purchasing its shares and six counsel holding them. Sidoti & Co. believes the stock will rise 43% to $90. KeyBanc Capital Markets and Morgan Stanley expect it to outperform the market.

-- Reported by Jake Lynch in Boston.

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