NEW YORK (TheStreet) -- Shares of Joy Global Inc (JOY) are gaining, up 5.9% to $44.51 on heavy volume in afternoon trading Monday, following the company's higher rating by analysts at Robert W. Baird this morning.
The firm upgraded Joy Global to "outperform" from "neutral", saying the worst may be over for the commodity deflation cycle.
Baird also raised its price target on Joy Global shares to $62 from $45.
Similarly, the firm upgraded shares of Caterpillar (CAT) to "outperform" from "neutral" with a higher price target of $101.
About 2.06 million shares of Joy Global have exchanged hands as of 1:12 p.m. ET today, compared to its average trading volume of about 1.63 million shares a day.
Joy Global is a manufacturer and servicer of high productivity mining equipment for the extraction of coal and other minerals and ores.
The company is based in Milwaukee, Wis.
Separately, TheStreet Ratings team rates JOY GLOBAL INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOY GLOBAL INC (JOY) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 analysis by TheStreet Ratings Team goes as follows:
- 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.
- You can view the full analysis from the report here: JOY Ratings Report