Joy Global Inc. (JOY): Today's Highlighted Performer In Industrial Goods

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Joy Global ( JOY) pushed the Industrial Goods sector higher today making it today's featured industrial goods winner. The sector as a whole was unchanged today. By the end of trading, Joy Global rose $1.32 (2.3%) to $58.15 on average volume. Throughout the day, 2.4 million shares of Joy Global exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $56.40-$58.50 after having opened the day at $57.01 as compared to the previous trading day's close of $56.83. Other companies within the Industrial Goods sector that increased today were: JinkoSolar ( JKS), up 16%, Vertex Energy ( VTNR), up 14.7%, Matrix Service Company ( MTRX), up 9.9%, and Ecotality ( ECTY), up 9%.
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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. It operates in two segments, Underground Mining Machinery and Surface Mining Equipment. Joy Global has a market cap of $6.03 billion and is part of the industrial industry. The company has a P/E ratio of 42.7, above the S&P 500 P/E ratio of 17.7. Shares are down 10.9% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Joy Global a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Joy Global as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, China Advanced Construction Materials Group ( CADC), down 11.4%, Skyline Corporation ( SKY), down 7.8%, NF Energy Saving ( NFEC), down 6.5%, and Perma-Fix Environmental Services ( PESI), down 5.9%, were all laggards within the industrial goods sector with KB Home ( KBH) being today's industrial goods sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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