Joy Global Shares: Buy, Sell or Hold This Mining Firm?

Joy Global posted better-than-expected quarterly results Wednesday and the mining equipment maker also boosted its forecast for 2011, above analysts’ expectations. What do the firm’s earnings mean for the economy going forward? Paul Bodnar, senior equity analyst at Longbow Research shared his insights.

“We’ve started to see an acceleration in coal production, not just domestically, but globally,” he told CNBC. “The market’s been very strong, particularly in Central Appalachia for export purposes, and this is narrated at Joy Global—so it’s helped them drive orders going forward.”

Bodnar also said he expects to see Joy Global’s international business to pick up.

“We’ve seen some strong thermal demand driven by China and shortages in India, and that’s going to drive some demand going forward.”

But as to investing in the firm's shares , Bodnar is maintaining a cautious stance.

“All the fundamentals look pretty strong, but we are still concerned about valuation,” he said. “We don’t see enough upside to adjust our ratings.”

Bodnar has a “neutral” rating on Joy Global.

Futures at a Glance:

Scorecard—What He Said:

  • Bodnar's Previous Appearance on CNBC (Apr. 15, 2010)

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Joy Global Competes With:

Bucyrus International


CNH Global


Bodnar does not own shares of JOYG.