Trade-Ideas: Joy Global (JOY) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Joy Global as such a stock due to the following factors:
- JOY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $69.8 million.
- JOY is up 2.4% today from today's close.
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More details on JOY:
Joy Global Inc. manufactures and services mining equipment for extraction of coal, copper, iron ore, oil sands, gold, and other minerals and ores worldwide. It operates in two segments, Underground Mining Machinery and Surface Mining Equipment. The stock currently has a dividend yield of 0.2%. Currently there are 4 analysts that rate Joy Global a buy, 2 analysts rate it a sell, and 6 rate it a hold.
The average volume for Joy Global has been 3.7 million shares per day over the past 30 days. Joy Global has a market cap of $2.4 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 2.14 and a short float of 18.8% with 5.95 days to cover. Shares are up 84.8% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Joy Global as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Machinery industry. The net income has significantly decreased by 117.6% when compared to the same quarter one year ago, falling from $55.96 million to -$9.84 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Machinery industry and the overall market, JOY GLOBAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for JOY GLOBAL INC is currently lower than what is desirable, coming in at 30.25%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.63% trails that of the industry average.
- Net operating cash flow has decreased to $44.18 million or 37.87% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 25.95%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 128.07% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- You can view the full Joy Global Ratings Report.
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