James Hardie Industries PLC (JHX) manufactures and sells fibre cement, fibre gypsum and cement-bonded building products for interior and exterior building construction applications. Their markets are primarily in North America, Australia, Europe, NZ, the Philippines, and Canada.
“With expectations for flat-to-declining EPS growth in financial year 2024, the shares are trading at a significant discount to its recent trading history,” Michael said.
“Having said that, JHX’s overweight to R&R vs new construction will also help brace earnings given repair and remodel downturns are shorter and not as severe as new home construction.
“In terms of the share price chart, a few weeks ago we noticed that although it was still in a downtrend, it was showing signs of a relief rally with a key resistance level at $35.
“After pushing beyond $35, it now looks like it is on the move again and is getting itself back into an uptrend.
“This means we have a nice opportunity here to start buying shares in JHX,” Michael concluded.
James Hardie Industries PLC (JHX)
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