Alcoa Inc (AA): Why China’s Telling You to Buy Industrial Stocks

Joy Global performed very well in 2012 due to growth in North and South America. It should continue its growth throughout 2013 with China on board.

Take a look at 2012 compared to 2011:

• Net sales rose 28.5% to $5.66 billion
• Operating income rose 27.4% to $1.2 billion
• Underground mining equipment sales rose 20.6%
• Surface mining equipment rose 39.7%

As miners began jumping for joy after the Chinese economic report, Joy itself has continued to lag. The stock saw an initial pop of 2% on April 9, but sold off 2% the very next day and then continued down for the week. I do not think the market is reacting correctly and this is an opportunity to buy on weakness. China was the catalyst Joy Global (NYSE:JOY) needed and has the potential to drive revenues to all-time highs.

The Foolish bottom line

There has never been a better time to own the industrials than right now. Caterpillar Inc. (NYSE:CAT) and Joy Global have been beaten down on the questionable global economy, but with China and Alcoa Inc (NYSE:AA) providing the insight we needed, it is time to pile back in. The rally is only beginning, so I would not wait much longer. Have a look to see if your portfolio could use an industrial, and if it does, take your pick.

Joseph Solitro owns shares of Caterpillar Inc. (NYSE:CAT). The Motley Fool has no position in any of the stocks mentioned.