Trade-Ideas: Joy Global (JOY) Is Today's Post-Market Leader Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Joy Global ( JOY) 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 $51.9 million.
  • JOY is up 3.6% today from today's close.

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More details on JOY:

Joy Global Inc. manufactures and services mining equipment for the extraction of coal, copper, iron ore, oil sands, gold, and other minerals. It operates in two segments, Underground Mining Machinery and Surface Mining Equipment. The stock currently has a dividend yield of 1.5%. JOY has a PE ratio of 24.8. Currently there are 6 analysts that rate Joy Global a buy, 1 analyst rates it a sell, and 10 rate it a hold.

The average volume for Joy Global has been 1.2 million shares per day over the past 30 days. Joy Global has a market cap of $5.3 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.43 and a short float of 11.7% with 12.54 days to cover. Shares are down 9.3% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Joy Global as a hold. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.02, which illustrates the ability to avoid short-term cash problems.
  • The revenue fell significantly faster than the industry average of 2.5%. Since the same quarter one year prior, revenues fell by 33.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The share price of JOY GLOBAL INC has not done very well: it is down 5.16% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The gross profit margin for JOY GLOBAL INC is currently lower than what is desirable, coming in at 32.64%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 8.14% trails that of the industry average.
  • Net operating cash flow has significantly decreased to $91.66 million or 73.86% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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