Happy Happy, Joy Joy (JOYG)

Joy Global

reported earnings this morning that beat on the bottom line, but missed on the top line. So why the optimism in Joy? The mining equipment maker said that new orders in this quarter skyrocketed 51% to $973 million, with original equipment orders showing more than a 100% gain, and after-market orders rising 20%. As a result of this, Joy Global lifted its earnings forecast for 2010 to $4.10-$4.15 a share. It previously expected $3.85-$4 a share. Analysts had been expecting earnings of $4 a share for the year. Also providing positive sentiment was CEO Mike Sutherlin who, in a statement, said, "The market fundamentals continue to improve as customers announce new mine expansions and increase their capital budgets. As a result of these factors, this quarter positions us well to finish the year strongly and to capitalize on opportunities for 2011." Joy Global has pretty solid financials, with a return on equity at a staggering 51.3%. It has more cash than debt on its balance sheet. Right now, it is a little expensive compared to Caterpillar and Bucyrus

trading at 1.3 times growth rate, whereas both of those companies are under 1. Nonethless, Joy Global is still cheap compared to its industry, which trades at 1.5 times growth rate. Joy Global is seen as a proxy on the health of emerging market economies, as countries like China and Brazil continue to operate full steam ahead. Joy Global competes with companies like Caterpillar

and Deere

. Investors may want to take a look at putting some JOY in their portfolio, although they would be even happier if shares pulled back a little. Shares of Joy Global are gaining 43 cents this morning, a gain of 0.76% to trade at $57.15.