James Hardie Industries plc (ASX: JHX) shares are trading in the green in Thursday lunchtime trading. At the time of writing the shares are 0.89% higher and changing hands for $26.04 a piece.
The uptick is welcomed, but hasn't done much to erase recent losses. Late last week James Hardie shares dropped to a five-year low. Over the past month, the shares have plunged 20.61% dragging the price 51.19% lower than this time last year.
What's happened? Is the slump a signal for investors to sell up? Or is it a buying opportunity for savvy investors?
Why James Hardie shares slumped this year
James Hardie shares shed 36.7% of their value in March this year when the company agreed to acquire The AZEK Company Inc. (NYSE: AZEK) in a deal valued at $8.75 billion (A$14 billion), including AZEK's net debt. Investors did not take the news well.
The fibre cement building product producer suffered another catastrophic 36.5% share price plunge following its Q1 FY26 results announcement in August. James Hardie posted a 9% drop in net sales, a 41% decline in operating income and a 21% fall in adjusted EBITDA. Again, investors were spooked and many sold up.
James Hardie shares suffered their third price plunge of the year in late October to early November. This time, the price dropped another 23.9%. This time, in the absence of any apparent reason for the decline, the ASX queried the company regarding any undisclosed information that could explain the recent price movement. James Hardie briefly paused trading and notified the ASX that there is no known reason for the trading activity.
Now, understandably, exhausted investors are questioning if the stock has finally hit the bottom, or if there could be even more downside to come.
Is it time to buy or sell up?
I think James Hardie's latest share price crash presents a strong buying opportunity for investors looking to get in ahead of a potential resurgence.
Analyst sentiment is also positive.
Macquarie analysts think the stock is looking more attractive after recent weakness. The broker has an outperform rating and $37.20 target price on James Hardie shares. That's a huge potential 49.2% upside at the time of writing.
Citi analysts are also bullish on the fibre cement building product producer's shares. They have upgraded the company's shares to a buy rating with an improved price target of $36.50. The broker said it believes the risk/reward on offer with James Hardie shares is looking positive and that the company is tracking ahead of expectations so far in FY26.
