James Hardie Industries PLC (ASX: JHX) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) building materials company closed yesterday trading for $32.80. In afternoon trade on Tuesday, shares are changing hands for $32.71 apiece, down 0.3%.
For some context, the ASX 200 is just about flat at this same time.
Taking a step back, James Hardie shares are down 39.0% since this time last year. Much of the selling occurred in late August after the company released its first-quarter results, clearly disappointing market expectations.
However, as per our headline, shares in the ASX 200 industrials stock have surged 19.7% since market close on 25 September.
That recent boost was driven by the release of James Hardie's decidedly more well-received preliminary second-quarter results, reported in Australia on 8 October.
The big question now is whether the stock can continue its recent strong run or if the buying opportunity window has already come and gone.
Image source: Getty Images
Should you buy James Hardie shares today?
Ord Minnett's Tony Paterno recently ran his slide rule over the ASX 200 industrials stock (courtesy of The Bull).
"JHX is a building products maker," said Paterno, who has a sell recommendation on James Hardie shares. "The share price responded positively when the company recently announced an improving performance for siding and trim sales."
Paterno noted that the company's recent results announcement is still preliminary.
"Improving preliminary second quarter results announced on October 7 are subject to adjustment and will be officially confirmed in November, along with the company outlook," he said.
Drilling into those preliminary results, Paterno said:
Group net sales of US$900 million in the first quarter of fiscal year 2026 were down 9% on last year's prior corresponding period. Net income of US$62.6 million was down 60%. Softer conditions in the US building market were well flagged and remains a challenge.
Paterno also noted the long-term downward trend that James Hardie shares have yet to shake.
"The shares jumped from $30.87 on October 6 to trade at $33.25 on October 9. However, the shares have fallen from $54.50 on January 20," he concluded.
Siding and trim sales spur a share price rebound
As Paterno mentioned above, James Hardie shares look to have enjoyed a strong rebound from improved siding and trim sales.
Commenting on the performance of that segment following the preliminary quarterly results release, James Hardie CEO Aaron Erter said:
Our Siding & Trim sales performance exceeded the expectations reflected in our modelling considerations. Siding & Trim second quarter organic net sales fell low single-digits vs. the prior year, and distributors and dealers reduced inventory less than we had anticipated.
