Cyclical stocks have a way of outdoing expectations both for good and bad. That makes it tricky to feel all that confident that Joy Global (JOY)
is bottoming out, particularly when there are still long-term issues
with the coal market that makes up a large percentage of the company's
equipment revenue base. What Joy Global has done, though, is
significantly improved its manufacturing process and shifted its capital
focus from M&A to returning cash to shareholders. Provided that
coal isn't in perpetual decline as a global energy source, these shares
could still have some appeal even after a 20% run from recent lows.
Read more here:
Has Joy Global Bottomed Out?
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