James Hardie Industries PLC (ASX: JHX) shares are climbing higher again this week. At the time of writing, the shares are trading at $30.50 a piece, which represents a rebound of around 17% since a four-month low of $26.10 in late March.
The latest uptick is great news for investors. James Hardie shares have suffered an incredibly volatile run over the past 12 months.
The fibre cement producer and marketer's shares crashed over 31% in March last year following the company's acquisition of The AZEK Company Inc (NYSE: AZEK) and its net debt. Investors did not take the news well.
The fibre cement building product producer suffered another catastrophic 36.5% share price plunge following a disappointing Q1 FY26 results announcement in August.
The shares crashed for a third time, this time by 23.9% in late October, but the company told the ASX there was no known reason for the trading activity.
The volatility has continued through to 2026, with some peaks and troughs.
Image source: Getty Images
Why are James Hardie shares climbing higher now?
There is no price-sensitive news out of James Hardie to explain the latest turnaround. Given the shares are widely considered oversold and undervalued, it's possible that investors have flipped their stance from pessimistic to cautiously optimistic and are buying back into the shares while they are cheap.
The company is a global leader in fibre cement siding and trim, and it has a dominant presence in the US. Its scale gives it pricing power and a strong competitive advantage that its peers are unable to match.
Its business continues to improve, too, with some solid growth expected ahead.
In February, the company posted a 30% increase in third-quarter net sales and a 26% hike in EBITDA. James Hardie said its balance sheet was reshaped by the AZEK acquisition. It said the move resulted in increased debt and goodwill, but the business generated solid cash and maintained strong profitability across geographies.
It also raised its FY26 guidance to Siding & Trim net sales of US$2.95 to US$3.0 billion and adjusted EBITDA of US$939 to US$962 million. Guidance for Deck, Rail & Accessories was also nudged higher, with net sales of US$787 to US$800 million and EBITDA of US$219 to US$224 million.
Finally, the good news seems to be translating into renewed investor sentiment.
Is this the recovery we've all been waiting for?
It looks like it could be.
Analysts have been bullish about James Hardie shares for some time now. I'm hopeful that the latest share price uptick represents the beginning of the next rally.
TradingView data shows that 15 out of 22 analysts have a buy or strong buy rating on the shares. Another seven have a hold rating.
The average target price is $39.32 a piece, which implies a 29% upside at the time of writing. Others are even more bullish, expecting the shares to climb another 48% to $45.10 over the next 12 months.
