Why is the James Hardie (ASX:JHX) share price trading at all time highs?

The cement manufacturer has had a great past two months.
The post Why is the James Hardie (ASX:JHX) share price trading at all time highs? appeared first on The Motley Fool Australia. –

Shares in James Hardie Industries Plc (ASX: JHX) finished the day in the green on Monday and nudged past their record high to close at $56.39. Meanwhile, the James Hardie share price has started Tuesday’s trading session in the green and is currently up 0.14%.

James Hardie has been on the upward trajectory these past 2 months, with shares bouncing off a low of $47.91 in mid-October. Let’s take a closer look.

Why’s James Hardie trading at all time highs?

Whilst it’s been relatively quiet out of the fibre cement manufacturer’s camp lately, it hasn’t stopped investors queuing up to secure a spot in the company.

Although, the S&P/ASX 200 Materials Index (XMJ) has also bounced off its previous lows in November with authority.

As we walked through the month, the index finished up more than 8% in the green, indicating strengths in the broad sector.

Aside from this, James Hardie is a quality company that has a “really long term growth trajectory and that it’ll do just fine regardless of what bond yields do in the short term”, according to Sage Capital.

The firm reckons that James Hardie covers its bases due to positioning in the fibre cement industry, whilst it continuously adds market penetration.

Part of its strong positioning in the industry is due to its intellectual property that is used in manufacturing fibre cement, Sage says.

Add in its exposure to the US – which is far more expansive than the Australian residential construction market – and there is a recipe for success, the firm believes.

The team at the Macquarie also liked James Hardie’s recent first half results, which it called a robust set of numbers.

It noted the company’s “raised guidance is a positive, particularly set against clear growth investment in [operating expenditure] opex and additional plans to add capacity to the network (including the EU)”.

Meanwhile fellow brokers Morgan Stanley, Jefferies and RBC Capital Markets are each bullish on the shares too.

Each firm values James Hardie at $62, $70 and $64 respectively, implying an average upside potential of around 16% at the time of writing.  

Investors appear to be feeling the same way. For instance, volume of trading on the company’s shares was 103% of its 4-week average volume yesterday.

James Hardie share price snapshot

In the last 12 months, the James Hardie share price has climbed 50% after rallying a further 48% this year to date.

In the past month, James Hardie is up 3% and its shares have climbed 3% in the past week as well.

These results are well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 10% in that time.

The post Why is the James Hardie (ASX:JHX) share price trading at all time highs? appeared first on The Motley Fool Australia.

Should you invest $1,000 in James Hardie right now?

Before you consider James Hardie, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and James Hardie wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why is the James Hardie (ASX:JHX) share price falling on Thursday?

2 ASX shares to grow no matter what the market does: experts

Here are the top 10 ASX shares today

Record quarter: James Hardie (ASX:JHX) share price pops on 29% profit jump

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!