Joy Global (JOY) Is Today's Strong On High Volume 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.

Trade-Ideas LLC identified Joy Global ( JOY) as a strong on high relative volume 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 $75.6 million.
  • JOY has traded 382,537 shares today.
  • JOY is trading at 7.72 times the normal volume for the stock at this time of day.
  • JOY is trading at a new high 5.02% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 1.9%. JOY has a PE ratio of 13.6. Currently there are 2 analysts that rate Joy Global a buy, no analysts rate it a sell, and 14 rate it a hold.

The average volume for Joy Global has been 1.7 million shares per day over the past 30 days. Joy Global has a market cap of $4.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.53 and a short float of 13.5% with 7.87 days to cover. Shares are down 9.7% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Joy Global as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the ratings report include:
  • The current debt-to-equity ratio, 0.48, 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 1.01, which illustrates the ability to avoid short-term cash problems.
  • JOY, with its decline in revenue, slightly underperformed the industry average of 10.5%. Since the same quarter one year prior, revenues fell by 16.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for JOY GLOBAL INC is currently lower than what is desirable, coming in at 30.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.35% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$18.36 million or 128.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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