Joy Global Inc.’s Trend Down, Especially After Today’s Gap Down

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The stock of Joy Global Inc. (NYSE:JOY) gapped down by $0.19 today and has $10.75 target or 9.00% below today’s $11.81 share price. The 9 months technical chart setup indicates high risk for the $1.21 billion company. The gap down was reported on Dec, 12 by If the $10.75 price target is reached, the company will be worth $108.90M less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 5.14% or $0.64 on December 11, hitting $11.81. About 2.83M shares traded hands. Joy Global Inc. (NYSE:JOY) has declined 73.29% since May 11, 2015 and is downtrending. It has underperformed by 68.88% the S&P500.

Analysts await Joy Global Inc. (NYSE:JOY) to reports earnings on December, 16. They expect $0.42 earnings per share, down 66.40% or $0.83 from last year’s $1.25 per share. JOY’s profit will be $43.03M for 7.03 P/E if the $0.42 EPS becomes reality. After $0.54 actual earnings per share reported by Joy Global Inc. for the previous quarter, Wall Street now forecasts -22.22% negative EPS growth.

Out of 20 analysts covering Joy Global Inc. (NYSE:JOY), 7 rate it “Buy”, 3 “Sell”, while 14 “Hold”. This means 29% are positive. Joy Global Inc. was the topic in 19 analyst reports since July 21, 2015 according to StockzIntelligence Inc.

According to Zacks Investment Research, “Joy Global Inc. is a worldwide leader in manufacturing, servicing and distributing equipment for surface mining through its P&H Mining Equipment division and underground mining through its Joy Mining Machinery division.(Press Release)” Get a free copy of the Zacks research report on Joy Global Inc. (JOY).

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