“It is often rewarding buying a high quality company when the world seems to be against them,” Jun Bei Lui said.

“James Hardie (JHX), one of the highest quality growth stories in the ASX, has been growing rapidly in the US market in the past decade taking share away from traditional players. “More recently, there had been some earnings headwind as US housing market going through its downturn as a result of rapid mortgage rate increases.

“Share price of JHX has fallen 15% leading up to its next earnings update, with anticipation of weaker September quarter.

“Our view is that US has already started rate cuts, upcoming quarterly is more of a rear view mirror, this will be the weakest quarterly for JHX before market improvements.

“The stock is now trading at large discount to its traditional premium.

“It’s a buy!”, Jun Bei said.

_{GRAPH FOR James Hardie Industries JHX}

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.