While the US midterm elections don't attract as much coverage as the Presidential election, the outcome is still consequential to the investing landscape.

Tomorrow's election will determine which party controls Congress. This will significantly affect legislation and executive action and will shape the direction of congressional hearings and investigations. Some sectors and ASX shares will benefit, while others will be disadvantaged.

The Republican Party currently controls both chambers of Congress.

The Democrats have been expected to take back control of the House for quite some time. 

Earlier this year, the prospects of them also taking back the Senate were slim. However, in recent months, Democrats' odds of taking back both chambers have risen.

With several key Senate races now rated a toss-up, Democrats have a slight edge.

Most notably, Texas could be on the cusp of electing its first Democratic Senator in more than 30 years. In recent weeks, Kansas, which Trump won by double digits in 2024 and hasn't elected a Democratic senator since 1932, has also been moved to a toss-up. 

Investors have been quietly shifting their expectations from a split Congress to a Democratic-controlled Congress. 

Should this eventuate, the balance of power in Washington would be divided for the next two years. A Democratic Congress would serve as a check and balance on Donald Trump's agenda. 

How could this change the investing landscape?

Let's consider three types of ASX shares that could swing the hardest based on the outcome.

Energy shares

Since the US-Iran conflict began in February this year, ASX energy shares have been especially volatile. 

Crude oil traded below $70 at the start of the conflict. It's now trading above $100, reflecting a significant rise. 

According to The New York Times, the US oil industry has made US$130 billion in profit during the Iran war. That's nearly three times higher than the industry made in the same period in 2025. 

Last week, the biggest US oil companies, Exxon Mobil and Chevron, reported their highest third-quarter earnings in years. High profits have translated into strong share price action, with both companies up more than 50% for the year to date.

On our local share market, ASX energy shares have also risen strongly this year. 

Woodside Energy Group Ltd (ASX: WDS) is up 40% for the year to date, while Santos Ltd (ASX: STO) has rallied 50%. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up just 2% year to date.

Throughout the conflict, the two nations have held several rounds of negotiations to reach a peace deal. Negotiation progress has been a major source of volatility for ASX Energy shares. Further escalation has driven shares higher, while the announcement of a potential agreement has pushed them lower. 

There has been wide speculation over the trajectory of the Iran war following the midterms. Some observers believe Trump is waiting until they are over to escalate the war.  

However, if a Democratic Congress is in charge, Trump will have to work with Democrats to implement his domestic agenda and pass a budget. In doing so, he might agree to change course on the Iran War and work with Democrats to reach a peace deal.

ASX shares with high US dollar exposure

Elections can also cause volatility in the foreign exchange market. 

The US dollar is typically seen as a safe haven. 

Additional geopolitical conflict will strengthen the US dollar, while a peace deal might prompt a risk-on environment, driving demand away from the US dollar. 

For ASX investors, the sectors with the highest and most direct US dollar exposure are technology, building materials, and healthcare.

In the technology sector, around 85% of Life360 Inc (ASX: 360)'s revenue is generated in USD from the US domestic market. WiseTech Global Ltd (ASX: WTC) also changed its reporting currency to US dollars in 2024 after a large portion of its revenue mix became USD-denominated following major North American expansions.

In the healthcare space, CSL Ltd (ASX: CSL) and Resmed CDI (ASX: RMD) also report in US dollars. A strengthened US dollar diminishes CSL and Resmed's earnings. When non-US revenues are converted back into a strong USD, the translated revenue shrinks.

Similarly, in the building materials sector, James Hardie Industries Plc (ASX: JHX) also uses the USD as its primary reporting currency. 

US-focused exchange-traded funds

Of course, the election outcome could also directly impact ASX-listed exchange-traded funds (ETFs) that hold US stocks. 

These include popular ETFs like iShares S&P 500 AUD ETF (ASX: IVV) and BetaShares Nasdaq 100 ETF (ASX: NDQ), which have a large allocation to large US technology companies. 

This election season, the regulation of artificial intelligence and data centres has been a central campaign issue. Democrats generally favour stricter regulation, while Republicans are against it. Should Democrats gain power, more regulation in this space could be on the cards, which would be a negative for US technology companies.

Given this landscape, Betashares' head of investment strategy, Cameron Gleeson, has noticed a change in investor behaviour leading up to the election. 

As reported by the Australian Financial Review, Gleeson said flows into US-centric funds now account for just 7% of international equity inflows. For context, that's significantly down from the peak of 50%. 

Revisiting history

With the Democrats almost certain to take control of the House of Representatives, political gridlock is almost certain, regardless of the Senate outcome. That means neither party can pass legislation on its own over the next two years, making significant change far less likely. 

Markets generally prefer certainty, which gridlock can provide. 

During a Republican presidency, the S&P 500 Index (SP: .INX) has gained 16% on average in the calendar year following midterms when Democrats control both chambers of Congress. When control of Congress is divided between the parties, the average return has been higher at 23%.

However, every election is different. Past performance also does not guarantee future results. 

After a strong past few years of performance from the S&P 500, a post-midterm surge may also be less likely. 

However, as always, certain US and ASX shares will be positioned better than others based on the results. This gives investors the chance to look for compelling opportunities, regardless of the outcome.

The post How the US midterm elections could move 3 key types of ASX Stocks appeared first on The Motley Fool Australia.

Here are three that I'd consider buying.

Cochlear Ltd (ASX: COH)

Cochlear is my first pick. It had a disappointing time in FY 2026, reporting a 22% decline in underlying net profit to $322 million.

The hearing implant company has been affected by slower procedures in some markets, insurance delays, and changes to reimbursement in China. But I don't think these problems mean its growth opportunities have disappeared.

Its new Nucleus Nexa implant is already proving popular, accounting for more than 95% of implant sales in developed markets by June. Cochlear also achieved an average 3% price increase on the product.

Management is now working to make it easier for adults with serious hearing loss to be referred for implants, potentially bringing more patients into treatment.

Cochlear recently reaffirmed FY 2027 underlying profit guidance of $330 million to $350 million. That would be a modest recovery, but I think improving patient referrals could lay the groundwork for stronger growth in the coming years.

James Hardie Industries PLC (ASX: JHX)

James Hardie has been dealing with a sluggish US housing market, where homeowners are postponing renovations and contractors remain cautious.

Yet its first-quarter FY 2027 results released in August suggest the business doesn't need a housing boom to improve. The building materials group raised its full-year outlook and is now targeting adjusted EBITDA growth of approximately 7% to 14% on a comparable basis.

Another positive is the opportunities created by its acquisition of AZEK, which owns the TimberTech decking brand. James Hardie can now offer contractors siding and decking products, while combining the businesses' sales networks and removing overlapping costs.

If those benefits keep coming through, I believe earnings could grow even before conditions in US housing improve substantially.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates is a more speculative turnaround opportunity, but I think there are encouraging early signs.

The Penfolds owner has been battling excess inventory and a disappointing performance in the US. It has responded by reducing wine production, selling non-core assets and restructuring its operations.

At its October annual general meeting, Treasury Wine revealed that Penfolds sales in China were tracking slightly ahead of plan, while sales in its US luxury wine portfolio had been improving.

The company also reiterated that it is targeting $40 million in cost savings during FY 2027, rising to $100 million annually by FY 2029.

Management isn't promising a sharp earnings rebound this year. But if inventory levels normalise and savings flow through, I believe 2027 could mark the beginning of a much stronger period for the business and its shares.

The post Why I think these 3 ASX shares could be turnaround winners in 2027 appeared first on The Motley Fool Australia.

Three ASX shares that brokers have named as buys are listed below. Here's why their analysts are feeling bullish on them right now:

James Hardie Industries PLC (ASX: JHX)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating on this building materials company's shares with a $48.00 price target. The broker recently surveyed US contractors and found that James Hardie continues to enjoy a strong market position, with existing customers increasingly using its products. This is encouraging given that conditions in the US housing market remain challenging, with many contractors not expecting a recovery until 2027. Morgan Stanley also sees cross-selling opportunities for the company from its acquisition of TimberTech's parent company. The James Hardie share price is trading at $37.30 on Wednesday.

Megaport Ltd (ASX: MP1)

A note out of Citi reveals that its analysts have retained their buy rating and $28.85 price target on this cloud infrastructure company's shares. The broker remains positive on Megaport's outlook despite recent weakness across the AI infrastructure sector. It highlights that rental prices for several types of high-performance AI computing chips have increased recently. Citi believes this demonstrates that demand remains strong. The broker also points to comments from Amazon indicating that much of its computing capacity for 2027 is already sold out, with substantial customer commitments extending into 2028. It believes Megaport is well-positioned to capitalise on this demand and highlights its strong balance sheet. Overall, Citi appears to believe that recent share price weakness has created an attractive buying opportunity. The Megaport share price is fetching $18.10 at the time of writing.

Sandfire Resources Ltd (ASX: SFR)

Analysts at Morgans have upgraded this copper producer's shares to a buy rating with an unchanged price target of $23.00. This follows the release of Sandfire's first-quarter update, which fell short of market expectations due largely to weaker zinc production at its Matsa operations. However, Morgans believes the disappointing result is largely a timing issue rather than a sign of more serious operational problems. It highlights that overall production remains consistent with the company's full-year guidance, which management has maintained alongside its cost and capital expenditure forecasts. With Sandfire shares weakening recently, Morgans believes investors are being offered an opportunity to gain exposure to the company's longer-term growth potential at an attractive price. The Sandfire share price is trading at $20.70 on Wednesday.

The post Top brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

This disappointing midweek session for the Australian markets comes after a more upbeat morning on the US markets.

The Dow Jones Industrial Average Index (DJX: .DJI) overcame some early jitters to finish 0.18% higher.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little more decisive, rising 0.45%.

But let's return to the local markets now and examine how today's trading conditions filtered down into the various ASX sectors this hump day.

Winners and losers

We had plenty of both winners and losers this Wednesday.

Leading the latter were financial stocks. The S&P/ASX 200 Financials Index (ASX: XFJ) was left out in the cold today, plunging 0.59%.

Mining shares had a rough one as well, with the S&P/ASX 200 Materials Index (ASX: XMJ) sinking 0.2%.

Industrial stocks were also left out. The S&P/ASX 200 Industrials Index (ASX: XNJ) ended up retreating 0.17% this session.

Next came communications shares, evidenced by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 0.14% downgrade.

Our last losers this Wednesday were utilities stocks. The S&P/ASX 200 Utilities Index (ASX: XUJ) ended up dipping 0.06%.

Let's get to the winners now.

Leading the charge were healthcare shares, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) roaring 1.09% higher.

We can say the same for gold stocks. The All Ordinaries Gold Index (ASX: XGD) experienced a 0.94% surge.

Real estate investment trusts (REITs) ran hot too, illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 0.8% jump.

Consumer discretionary shares were also in demand. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) lifted 0.47%.

Energy stocks were next, with the S&P/ASX 200 Energy Index (ASX: XEJ) advancing 0.45% this hump day.

Consumer staples shares held up well, too. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) had gained 0.11% by the closing bell.

Finally, tech stocks only just got across the line, as you can see from the S&P/ASX 200 Information Technology Index (ASX: XIJ)'s 0.01% bump.

Top 10 ASX 200 shares countdown

This Wednesday's winner was the real estate investment trust Arena REIT (ASX: ARF). Arena units soared 12.98% higher today to close at $2.35 each.

This came after the REIT released a pleasing update regarding its childcare portfolio.

Here's how the other high flyers landed their planes:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Well, to narrow things down, let's see what analysts are saying about the popular shares listed below.

Are they buys, holds, or sells? Here's what they are recommending:

James Hardie Industries PLC (ASX: JHX)

Morgans is feeling more positive about this building products company following the release of its investor day update.

In response, the broker has upgraded James Hardie shares to an accumulate rating with a trimmed price target of $43.00. It said:

JHX held its combined James Hardie and AZEK Investor Day in New York on 15 September 2026. The day centred on the "built to outperform, resilient by design" tagline, as management guided to 4% to 7% organic sale growth above market, while stressing the growth did not require a US housing recovery to work. 

The growth is meant to come from the AZEK combination, synergies running ahead of plan, and a leaner, lower-capex portfolio after the Europe sale. The positive company story and the growth trajectory are only partially offset by the tough macro, a 75bps rise in the 30-year mortgage rate over the past six months, and a peer multiple de-rate. On this basis we upgrade to an Accumulate rating, whilst moderating our target price to A$43.00 (from A$45.00).

Ramelius Resources Ltd (ASX: RMS)

Another ASX share that Morgans is positive on is gold miner Ramelius Resources.

It is feeling upbeat on its outlook and has put a buy rating and $4.74 price target on its shares. It commented:

RMS is expected to release FY27 guidance and an updated outlook to FY30 in Sep-26, following execution of the EPC contract for the Mt Magnet mill expansion, providing greater clarity on project costs and timing. Following an analyst change, we retain our BUY recommendation with a revised price target of A$4.74 per share.

REA Group Ltd (ASX: REA)

Finally, Bell Potter remains bearish on this property listings company and has named its shares as a sell this week with a $148.00 price target.

The broker has concerns that listings volumes could fall well short of consensus estimates due to it operating in a challenging environment at present. Bell Potter explains:

We retain our Sell recommendation. Despite REA's ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis.

The post Buy, hold, sell: James Hardie, REA Group, and Ramelius shares appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for another good session on Friday following a strong night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 54 points or 0.6% higher this morning. On Wall Street, the Dow Jones was up 0.6%, the S&P 500 rose 1.15%, and the Nasdaq jumped 1.7%.

Oil prices fall

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.15% to US$101.26 a barrel and the Brent crude oil price is down 1.55% to US$104.19 a barrel. This reflects more crude oil being brought to market.

Sell REA shares

The REA Group Ltd (ASX: REA) share price could be overvalued according to analysts at Bell Potter. This morning, the broker has retained its sell rating on the property listings company's shares with an improved price target of $148.00. It said: "We retain our Sell recommendation. Despite REA's ability to generate strong results in challenged operating environments, we continue to see significant downside risk to listings volumes/earnings vs. company guidance and consensus and await further data points via lending volumes and market listings before re-considering our thesis."

Gold price softens

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a subdued finish to the week after the gold price edged lower overnight. According to CNBC, the gold futures price is down 0.15% to US$4,380.8 an ounce. The precious metal has come under pressure this week after US interest rates were increased.

James Hardie shares upgraded

Morgans was pleased with the investor update from James Hardie Industries PLC (ASX: JHX) this week. In response, the broker has upgraded the building materials company's shares to an accumulate rating with a $43.00 price target. It said: "…management guided to 4% to 7% organic sale growth above market, while stressing the growth did not require a US housing recovery to work. The growth is meant to come from the AZEK combination, synergies running ahead of plan, and a leaner, lower-capex portfolio after the Europe sale."

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

Both James Hardie Industries PLC (ASX: JHX) and Lottery Corporation Ltd (ASX: TLC) received a new accumulate rating from the broker. 

These two ASX 200 stocks have moved in opposite directions in 2026. 

James Hardie Industries shares have risen by over 21% year-to-date, while Lottery Corporation has fallen almost 7%. 

However both have upside moving forward according to the team at Morgans. 

Here is the latest outlook. 

James Hardie

James Hardie is the world's leading producer and marketer of fibre cement building products and a major supplier of fibre gypsum and cement-bonded boards. 

The ASX 200 company held its combined James Hardie and AZEK Investor Day in New York on 15 September 2026. 

The day centred on the "built to outperform, resilient by design" tagline, as management guided to 4% to 7% organic sales growth above market, while stressing that this growth did not require a US housing recovery. 

Morgans said growth will come from the AZEK combination, synergies ahead of plan, and a leaner, lower-capex portfolio after the Europe sale. 

The positive company story and the growth trajectory are only partially offset by the tough macro, a 75bps rise in the 30-year mortgage rate over the past six months, and a peer multiple de-rate. On this basis we upgrade to an Accumulate rating, whilst moderating our target price to A$43.00 (from A$45.00).

From current levels, this updated price target indicates an upside potential of 20%. 

Lottery Corporation

This ASX 200 company is Australia's largest provider of lottery, Keno, and instant scratch products.

The team at Morgans has updated its forecasts on the company given domestic lottery conditions have not improved since the FY26 result. 

We have marked our lottery tracker to market and now have tracked turnover running high single digits behind the prior comparative period. We cut FY27/28F Lotteries revenue by 2-3% and Lotteries EBITDA by 3-4%, with EPS down 6%/4%. 

The change is a lower jackpot assumption, partly offset by a lower jackpot share of turnover, as base games and three price increases carry more of the mix.

The broker has upgraded its target price to $5.40 (previously $5.60). 

From current levels, this indicates an upside potential of over 15%. 

Following the September bond issue, our FY27 interest costs remain broadly unchanged with FY28 lifted nominally. At c.16.5x 12-month forward EV/EBITDA and a 3.3% fully franked yield, we think a poor sequence is in the price, and see upside from here if conditions improve.

The post 2 ASX 200 stocks that Morgans just upgraded appeared first on The Motley Fool Australia.

Meanwhile, brokers have lifted their ratings on several ASX 200 shares this week. 

Let's review. 

CSL Ltd (ASX: CSL)

The CSL share price is $177.29, up 1.7% today.

Over the past month, this ASX 200 healthcare share has ripped 32%.

RBC Capital upgraded CSL shares to a buy rating on Tuesday.

The broker raised its 12-month price target substantially from $148 to $213.

This implies a potential 20% upside ahead.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is $38.91, up 2.3% today.

Over the past month, this ASX 200 bank share has fallen 1%.

Citi upgraded NAB shares to a buy rating yesterday.

The broker increased its 12-month price target from $40 to $42.10.

This suggests a potential 8% upside ahead.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is $4.86, up 0.7% today.

Over the past month, this ASX 200 consumer discretionary share has fallen 9%.

Morgans upgraded Lottery Corporation shares to a buy call today.

The broker reduced its 12-month price target from $5.60 to $5.40.

This implies a potential 11% upside ahead.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay Health Care share price is $55.06, up 0.4% today.

Over the past month, this ASX 200 healthcare share has risen 23%.

RBC Capital upgraded Ramsay Health Care shares to a buy call this week.

The broker increased its 12-month price target significantly from $52 to $68.

This indicates potential capital gains of 23% over the next year. 

Challenger Ltd (ASX: CGF)

The Challenger share price is $10.09, down 1.9% today.

Over the past month, this ASX 200 financial share has increased 4%.

UBS upgraded Challenger shares to a buy rating with a $11.50 price target.

This suggests a potential 14% upside ahead.

James Hardie Industries Plc (ASX: JHX)

The James Hardie share price is $37.38, up 0.2% today.

Over the past month, this ASX 200 materials share has fallen 15%.

Morgans upgraded James Hardie shares to an accumulate rating yesterday.

The broker shaved its 12-month price target from $45 to $43.

This suggests potential capital growth of 15% over the next year. 

Morgans said:

The positive company story and the growth trajectory are only partially offset by the tough macro, a 75bps rise in the 30-year mortgage rate over the past six months, and a peer multiple de-rate.

On this basis we upgrade to an Accumulate rating, whilst moderating our target price to A$43.00 (from A$45.00).

The post 6 ASX 200 shares boosted by brokers this week appeared first on The Motley Fool Australia.

The James Hardie share price is up 0.29% to $37.41 in late morning trade, but that barely dents its recent losses.

The stock has fallen almost 15% over the past month and more than 8% in a week, although it is still up around 21% in 2026.

Wednesday was particularly rough, with the shares dropping 5.23% after the company held its 2026 Investor Day.

Management reckons the company can keep growing strongly even if the US housing market stays weak.

But can it actually pull that off?

The US market remains difficult

The backdrop in the United States is still pretty tough.

US homebuilder sentiment fell to a 12-month low in September, while the average 30-year mortgage rate recently hit 6.76%.

Existing home sales also dropped 2% in August to an annualised rate of 3.98 million, the lowest level in 14 months.

That's not exactly ideal when North America is still the biggest part of James Hardie's business.

But management isn't banking on cheaper mortgages or a housing rebound to drive growth.

At its Investor Day, James Hardie said it is targeting organic growth of 4% to 7% above the market over the longer term.

And the company reckons it can get there even if housing conditions stay weak.

Growth is still holding up

James Hardie's first-quarter numbers suggest the plan is already starting to show through.

Q1 FY27 revenue rose 64% to US$1.48 billion, while pro-forma sales increased 12%.

North American fibre cement sales also grew 20% organically during the quarter, even with US housing still struggling.

That's probably the number I'd be paying closest attention to from here.

If James Hardie can keep growing ahead of the housing market, it takes some of the pressure off waiting for a full recovery.

Can it keep this going?

The next few results should give investors a better idea of whether James Hardie can keep this up.

So far, the early signs are encouraging.

At $37.41, the shares are well below their August high of $44.12, despite the business still moving in the right direction.

If James Hardie can keep growing ahead of the wider housing market, I think investors could start looking at the stock a little differently.

And if US housing eventually improves as well, that would give the company another reason to keep growing.

The post James Hardie says it doesn't need a US housing recovery. Can it prove it? appeared first on The Motley Fool Australia.

At the time of writing, the shares are changing hands at $37 a piece.

Despite the tumble, the shares are still up around 20% year to date and 24% higher than a year ago.

The decline comes off the back of the company's Investor Day presentation, which was posted to the ASX ahead of the market open this morning.

What did James Hardie announce?

The cement manufacturer said it is seeing consistent demand for its products and is executing well in the areas it can control.

As a result, management is able to reaffirm the company's second quarter and FY27 sales and adjusted EBITDA guidance (excluding Europe), and raise its FY27 free cash flow guidance to more than US$600 million, up from US$500 million+ previously. This is despite a continued challenging macro backdrop.

The company also revealed that it is targeting annual organic growth of 4% to 7% above market, with compounding earnings. 

Elsewhere, James Hardie said that it is accelerating the integration with AZEK, achieving faster-than-expected cost synergy targets. It now expects to complete the US$125 million cost synergy target a full year ahead of schedule, while revenue synergies are progressing as planned.

James Hardie is also pressing ahead with the divestment of its European operations for about US$980 million. The proceeds of which are already earmarked to pay down debt and fund share buybacks.

The announcement looks good on paper, so why are investors selling up?

What is spooking investors today?

The James Hardie share price had rallied strongly through June to August, reaching a 52-week high of $44.12 early last month. So it's likely that investor expectations were already incredibly high. 

Investors may also have been disappointed that management reaffirmed its FY27 sales and adjusted EBITDA guidance rather than increasing it. 

It's also possible that there is still some uncertainty about how quickly cost and revenue synergies from the AZEK acquisition can translate into earnings and cash flow.

What's ahead for the James Hardie share price?

I expect we might see analysts and brokers revise or reaffirm their outlook for James Hardie shares in the coming days, following this morning's announcement.

But at the time of writing, sentiment looks mostly very positive.

Market Index data shows brokers are currently split between a buy and hold rating. But the $39.20 average target price implies around a 5% upside, at the time of writing.

Analysts on TradingView are much more bullish. Of 25 analysts, 19 have a buy/strong buy rating, and another 6 rate the stock as a hold. 

But they all agree there will be some element of upside ahead. At the time of writing, the average $47.59 target price implies a potential 28% upside ahead. Whereas some are even more confident and forecast the shares to climb 50% higher to $56.05 each.

The post Down 6% today: What's going on with the James Hardie share price? appeared first on The Motley Fool Australia.

What did James Hardie report?

• Targets annual organic growth of 4% to 7% above market, with compounding earnings
• Expects to deliver US$125 million in cost synergies one year ahead of schedule
• US$500 million in revenue synergies from the AZEK integration remain on track
• Raised FY27 free cash flow target; reaffirmed FY27 net sales and Adjusted EBITDA guidance (excluding Europe)
• Commits to capital allocation priorities, aiming to reduce net leverage to below 2.0x by Q2 FY28

What else do investors need to know?

James Hardie is accelerating the integration with AZEK, achieving faster-than-expected cost synergy targets. The company expects to complete the US$125 million cost synergy target a full year ahead of schedule, while revenue synergies are progressing as planned.

The company is pressing ahead with the divestment of its European operations for about US$980 million. Proceeds are earmarked to pay down debt and fund share buybacks, which should support balance sheet strength and shareholder returns.

What did James Hardie management say?

Chief Executive Officer Aaron Erter said:

We are also introducing our financial growth algorithm that outlines the building blocks to deliver 4% to 7% growth above market. This will be driven by a $23 billion material conversion opportunity, self-help growth initiatives, and $500 million in anticipated revenue synergies – all without underwriting a housing recovery.

What's next for James Hardie?

James Hardie reaffirmed its FY27 sales and Adjusted EBITDA targets and lifted its free cash flow outlook, signalling confidence despite broader macroeconomic challenges. The company is prioritising organic growth, disciplined capital allocation—including debt reduction—and further bolt-on acquisitions.

Management's focus on compounding earnings and a robust North American growth strategy puts James Hardie on a path to deliver above-market returns, supported by structural drivers in the repair, remodel and new-build markets.

James Hardie share price snapshot

Over the past 12 months, James Hardie shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post James Hardie lifts guidance and details long-term growth at 2026 Investor Day appeared first on The Motley Fool Australia.

Here are some new ratings from the experts this week.

Echo IQ Ltd (ASX: EIQ)

The Echo IQ share price is steady at 49 cents today, and up 73% over 12 months. 

Morgans has a buy rating on this ASX tech share with a 12-month price target of $1.10.

The broker said: 

EIQ has received a Not Substantially Equivalent (NSE) determination on its initial EchoSolv HF 510(k), despite an extensively validated dataset generated in line with FDA guidance. The device cannot be marketed under this application as submitted, pushing back the biggest near-term catalyst and revenue driver. Decision is a setback, but the timing points to a fixable problem.

The determination landed day 264 of the FDA's 270-day clock, leaving the agency no scope to seek further information and forcing a decision on what it had. Management confirms a single outstanding statistical point, not a safety or clinical issue, and says the letter invites resubmission.

We read this as a file closed on expiry rather than a technology rejected, and the 510(k) route stays open.

In any case, the regulatory and timing risks have increased, reflected in a valuation cut to A$1.10.

Warrants the negative market reaction but ultimately view the validity of the tool as intact, this reads as a setback in how the data was presented and assessed, not a failure of the underlying technology itself.

James Hardie Industries PLC (ASX: JHX)

The James Hardie share price is $39.58, up 1.2% today and up 31% over 12 months. 

James Bills from Shaw and Partners has a hold rating on this ASX 200 materials share. 

He said (courtesy The Bull): 

James Hardie remains a global leader in fibre cement building products and continues to benefit from strong brand recognition and market share gains, particularly in North America.

The company has delivered solid long term earnings growth through product innovation and operational efficiency.

However, housing activity remains sensitive to interest rate movements and broader economic conditions, creating some uncertainty around demand in the near term. Given its strong fundamentals and balanced valuation, a hold recommendation remains appropriate.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is $39, up 0.6% today and up 39% over 12 months. 

Bills has a sell rating on this ASX 200 consumer staples share. 

He explained: 

The supermarket group has experienced a strong recovery in the past year, with the share price recently trading near the upper end of its historical range.

While the company remains high quality with a leading position in Australian food retailing, much of the recent improvement appears to be reflected in the WOW share price.

Earnings growth is expected to remain relatively steady rather than exceptional, limiting scope for further share price appreciation from current levels.

Following the recent rally, investors may consider taking profits before re-allocating capital to opportunities with stronger growth potential and a more attractive risk-reward profile.

The post Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares appeared first on The Motley Fool Australia.

Experts at Wilson Asset Management manage the listed investment company (LIC) WAM Leaders Ltd (ASX: WLE), which aims to actively invest in larger ASX-listed businesses.

In other words, the investment team is willing to make investments and sales based on whether they think valuations are attractive.

WAM Leaders named James Hardie as one of its most compelling holdings right now.

What's so appealing about the ASX 200 blue-chip stock?

The company describes itself as an industry leader in exterior home and outdoor living solutions, with a portfolio that includes fibre cement, fibre gypsum, and composite and PVC decking and railing products.

It's a global business, with a presence in North America, Europe, Australia and New Zealand.

However, the company recently announced plans to sell its European operations, including the sale of Fermacell to Holcim for €840 million (or US$980 million).

The ASX 200 blue-chip share explained that proceeds will be used to "accelerate deleveraging and return capital to shareholders."

James Hardie also said it intends to close its European fibre cement business, subject to customary legal, regulatory and employee (including competent works council) consultation requirements.

WAM noted that James Hardie Industries delivered a solid first quarter FY27 result.

The investment team said that the ASX 200 blue-chip share's core North American fibre cement business returned to volume growth supported by continued market share gains. This contributed to an upgrade of the company's full-year guidance.

The company guided that FY27 total net sales could be $5.564 billion to $5.723 billion, adjusted operating profit (EBITDA) is expected to be between $1.536 billion and $1.625 billion and free cash flow is expected to be at least $500 million.

What do the experts like about James Hardie shares?

WAM also said that the announcement of the divestment of the European operations during August allows the company to "sharpen its focus on its core growth markets while further deleveraging its balance sheet."

The fund manager said that James Hardie Industries remains a core holding in the WAM Leaders investment portfolio, with the ASX 200 blue-chip share continuing to deliver above market growth through strong execution of cost and commercial synergies and ongoing market share gains, despite a subdued US housing market.

James Hardie shares could be one to watch, along with other potential opportunities.

The post Experts reckon this high-flying ASX 200 blue-chip stock is a buy appeared first on The Motley Fool Australia.

At the time of writing, the building products stock is up 1.15% to $40.38, while the S&P/ASX 200 Index (ASX: XJO) is flat at 8,983 points.

It has already been a strong year for shareholders, with James Hardie shares up around 30% since the start of 2026.

The stock traded above $43 in August before giving back some ground over the past few weeks.

So, is there still some upside left?

Why Morgan Stanley is bullish

Morgan Stanley appears to think so.

According to The Australian, analyst Joseph Michael has James Hardie among the broker's top Australian industrial picks following reporting season.

He believes the company can keep growing faster than the broader market, helped by the AZEK acquisition, cost savings, and stronger cash flow.

Morgan Stanley estimates James Hardie could deliver around 19% more earnings than current market expectations by 2029.

And yes, that's a pretty bullish call, particularly while the US housing market remains soft.

The latest result also gave investors some reasons to be positive. First-quarter FY27 sales jumped 64% to US$1.47 billion, while adjusted EBITDA rose 79% to US$422 million.

On a pro-forma basis, which includes AZEK in the comparison period, sales still increased 12%.

Management also lifted its FY27 outlook and now expects pro-forma adjusted EBITDA growth of 7.4% to 13.7%.

Cash flow is heading higher

The balance sheet has been one of the key concerns since the AZEK acquisition.

But there were some encouraging signs in the last quarter.

Free cash flow more than doubled to US$254 million, and the company is still targeting at least US$500 million across FY27.

The planned $840 million Euro sale of Fermacell should also give the balance sheet a boost. Around US$600 million of the proceeds is expected to go towards paying down debt, which should help bring net leverage below 2 times.

James Hardie also announced a US$250 million share buyback alongside the sale.

Would I buy at $40?

I still like the look of James Hardie shares at these levels.

The stock has already had a strong run this year, so I would not expect another easy 30% gain from here.

In addition, broker sentiment is also positive. TipRanks shows 7 buy ratings and 4 holds, with an average price target of $44.84.

That's around 11% above the current share price.

And if the company keeps delivering on its growth plans, I think there could be more upside over the longer term.

The post This ASX 200 stock is up 30% in 2026. Here's why I'd still buy it appeared first on The Motley Fool Australia.

If I had $20,000 ready to invest today, I would put it behind three businesses I think have plenty of room to grow over the years ahead.

Here's what I would buy.

Pro Medicus Ltd (ASX: PME)

Pro Medicus would probably receive the largest portion of my money.

Its Visage software is already used by some of the largest healthcare systems in the US, yet the company estimates it still has only around 11% of that market.

I think that is a powerful combination. Pro Medicus has proved its technology can handle the demands of major hospital networks, while most of the potential US market remains available.

The opportunity is also expanding beyond radiology. Cardiology and enterprise imaging could allow Visage to handle more of the medical images produced across a healthcare organisation. Artificial intelligence may create further opportunities as hospitals look for faster and better ways to work with growing volumes of imaging data.

Over a long timeframe, I think Pro Medicus can win many more customers while becoming increasingly valuable to those it already serves.

James Hardie Industries plc (ASX: JHX)

James Hardie gives me exposure to a very different type of long-term opportunity.

This ASX share is best known for fibre cement building products, particularly in North America, where its products are used across housing construction and renovation.

What interests me is the amount of existing housing that will need to be repaired, renovated, or upgraded over the coming decades.

Homeowners do not need a housing boom for that spending to happen. Ageing properties eventually need work, and James Hardie's products can benefit when owners replace siding or invest in improving their homes.

The company's acquisition of AZEK also expands its presence across outdoor living products such as decking and railing. I think that gives James Hardie more ways to participate when homeowners spend money improving the outside of their properties.

Sigma Healthcare Ltd (ASX: SIG)

My final investment would go into Sigma Healthcare.

Following its merger with Chemist Warehouse, investors now have exposure to one of Australia's best-known pharmacy and retail businesses.

I think the next stage of the story could increasingly happen overseas. Chemist Warehouse already has a growing presence in New Zealand and has started testing the UK market. If its value-focused retail model travels successfully, the addressable opportunity becomes far larger than Australia alone.

There is still room to grow domestically through stores, online sales, pharmacy services, and the wider distribution business.

I think Sigma now has several avenues to become a much larger healthcare and retail company over time.

Foolish takeaway

With $20,000 to invest this spring, I would be comfortable putting the entire amount to work across these three ASX shares.

Most importantly, I would be buying with several years in mind and giving each business time to pursue the opportunities already in front of it.

The post Where I'd invest $20,000 in ASX shares this spring appeared first on The Motley Fool Australia.

Materials and mining stocks rose by a modest 2.5% over the week, according to CommSec data.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) closed out the week up 0.37% to 9,092.3 points on Friday.

Only four sectors finished in the green last week.

Let's review.

ASX materials and mining shares led the market

As earnings season continued last week, several ASX mining shares reached new record highs.

Among them was BHP Group Ltd (ASX: BHP), which reset its historical high at $68.77 per share on Wednesday.

BHP is not only the largest miner on the market, it's also the most valuable company of the entire ASX 200.

The BHP share price finished the week 3.28% higher at $67.30 per share.

The Fortescue Ltd (ASX: FMG) share price increased 1.8% to $18.07.

Rio Tinto Ltd (ASX: RIO) shares lifted 1.52% to $178.04.

Diversified ASX 200 miner, Mineral Resources Ltd (ASX: MIN), fell 1.25% to $65.46 per share.

The South32 Ltd (ASX: S32) share price leapt 7.36% to $5.25 on Friday.

Pure-play ASX copper share Sandfire Resources Ltd (ASX: SFR) surged 7.81% to $23.34 per share.

ASX gold share Northern Star Resources Ltd (ASX: NST) ascended 3.38% to $24.78.

Newmont Corporation CDI (ASX: NEM) shares rose 1.64% to $182.80.

The Evolution Mining Ltd (ASX: EVN) share price closed at $15.67, up 2.08%.

ASX 200 lithium stock PLS Group Ltd (ASX: PLS) jumped 5.72% to $5.36 per share.

The IGO Ltd (ASX: IGO) share price rose 2.63% to $8.58.

Lynas Rare Earths Ltd (ASX: LYC) shares edged 0.31% higher to $16.26.

Among the non-mining ASX 200 materials shares, BlueScope Steel Ltd (ASX: BSL) rose 1.48% to $30.86.

The James Hardie Industries plc (ASX: JHX) share price fell 3.31% to $41.42.

Orica Ltd (ASX: ORI) shares decreased 0.81% to $21.98.

Several mining shares are among 37 companies going ex-dividend next week.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post ASX 200 mining shares outperform in final week of earnings season appeared first on The Motley Fool Australia.

Two of the big name ASX shares are outpacing the 0.2% losses posted by the S&P/ASX 200 Index (ASX: XJO) in late morning trade on Friday, while one is charging higher.

Here's what's grabbing investor interest.

James Hardie shares lift on $1.4 billion asset sale

James Hardie shares are in the green today, up 0.6% at $43.05 apiece.

Investors are responding positively after the ASX 200 building materials company announced that it is divesting its European operations.

The company will sell its Fermacell business to Holcim for €840 million (AU$1.38 billion). James Hardie also intends to close its European fibre cement operations.

The ASX 200 stock will use the proceeds to pay down some $600 million in debt as well as funding a new $250 million share buyback. The company expects the deal to close in the first half of calendar 2027.

Commenting on the sale helping lift James Hardie shares today, CEO Aaron Erter said:

We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim's ownership.

Guzman Y Gomez shares jump on earnings surge

Like James Hardie shares, Guzman Y Gomez shares are outperforming today.

And strongly.

At the time of writing, shares in the ASX 200 Mexican fast-food restaurant chain are up 8%, changing hands for $25.89 each.

This follows the release of Guzman Y Gomez's full-year FY 2026 results.

Investors look to be supporting the stock, with GYG now having completed its painful exit from its US operations and eying growth in its core Aussie markets.

While GYG achieved a statutory net profit after tax (NPAT) increase of 31.6% from FY 2025 to $40.6 million, the company reported a statutory group NPAT loss of $26.7 million due to its US exit.

In other core financial metrics, Guzman Y Gomez shares are likely attracting attention, with the company reporting a 28.7% year-on-year increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to $85 million.

Management also announced an additional $100 million share buyback.

Which brings us to…

Pro Medicus shares slide despite new contract win

Joining Guzman Y Gomez and James Hardie shares in turning heads today, we find Pro Medicus.

At the time of writing, shares in the ASX 200 health imaging company are down 3.1%, trading for $199.71 apiece.

Pro Medicus shares are sliding despite the company announcing a new $25 million, seven-year contract with United States-based healthcare provider Valley Health. The contract covers the full range of Pro Medicus' cloud-based medical imaging solutions.

The post Why Guzman Y Gomez, Pro Medicus and James Hardie shares are turning heads on Friday appeared first on The Motley Fool Australia.

The deal is expected to speed up debt reduction and support the return of capital to shareholders, with a new $250 million share repurchase program also unveiled.

What did James Hardie report?

• Firm has agreed to sell its European sustainable walling and flooring business Fermacell to Holcim for €840 million in cash.
• Proceeds will be used to repay about $600 million in debt and to fund a $250 million share buyback.
• The transaction is expected to be accretive to the company's margin profile and return on invested capital (ROIC) post-completion.
• James Hardie also plans to close its European fiber cement operations, sharpening focus on its core growth markets.
• The deal is targeted to close in the first half of calendar 2027, subject to regulatory and employee procedures.

What else do investors need to know?

James Hardie's strategic shift is part of a broader plan to align its portfolio with long-term growth opportunities and market leadership in core regions. The funds from the Fermacell sale will reduce James Hardie's net leverage toward a target of below 2.0x by September 2027.

Additionally, the Board's $250 million share buyback authorisation demonstrates a commitment to delivering shareholder returns. The closure of the European fiber cement business, while significant, also signals a more focused approach to investment and innovation in key growth markets such as North America and Asia-Pacific.

What did James Hardie management say?

James Hardie's CEO, Aaron Erter, commented:

The strategic divestiture of our European operations and the intended closure of the European fiber cement business will enable us to focus on our highest growth and return opportunities. We believe this divestiture will strengthen our balance sheet, deliver compelling value for our shareholders and position the Fermacell business for long-term success under Holcim's ownership. We are deeply grateful to our talented team members across Europe, whose expertise and hard work have made meaningful contributions to James Hardie, and we are committed to supporting impacted European fiber cement employees.

What's next for James Hardie?

James Hardie expects the transaction to be completed in the first half of 2027, pending usual closing conditions. The focus post-sale will be on reducing debt further and potentially more capital management initiatives, including share buybacks.

The divestment and business closure will allow James Hardie to direct resources toward markets and segments with the most potential for sustainable growth and improved returns. Management has indicated a continued appetite for innovation and investment in these core markets.

James Hardie share price snapshot

It has been a strong 12 months for the James Hardie share price. During this time, the company's shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of almost 50%.

View Original Announcement

The post James Hardie sells European business, launches share buyback appeared first on The Motley Fool Australia.

The index opened sharply lower this morning, but recovered throughout the day to post a loss of just 0.086% for the session. That leaves the ASX 200 at 9,263.6 points as we head into the weekend.

This cooler end to the Australian trading week today comes after a red session up on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) had a rough time of it, losing a hefty 0.85%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared much better, though, dropping by just 0.057%.

But let's return to the local market now and check out how the different ASX sectors traversed today's tepid trading conditions.

Winners and losers

Despite the market's retreat, we still saw plenty of sectors record a rise today.

But first, it was financial shares that led the selling. The S&P/ASX 200 Financials Index (ASX: XFJ) was hit hard this Friday, slumping 0.95%.

Healthcare stocks weren't popular either, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) tanking 0.92%.

Industrial shares were on the nose too. The S&P/ASX 200 Industrials Index (ASX: XNJ) took a 0.62% dive this session.

We could say the same for consumer discretionary stocks, illustrated by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)'s 0.62% dip.

Utilities shares weren't much better. The S&P/ASX 200 Utilities Index (ASX: XUJ) sank 0.43% by the end of the day.

Real estate investment trusts (REITs) didn't hold water, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) drifting down 0.09%.

Our last losers this Friday were communications stocks. The S&P/ASX 200 Communication Services Index (ASX: XTJ) slipped 0.04% lower.

Let's get to the green sectors now. Leading the pack were again gold shares, as you can see from the All Ordinaries Gold Index (ASX: XGD)'s 3.45% jump.

Broader mining stocks didn't miss out either. The S&P/ASX 200 Materials Index (ASX: XMJ) soared 1.32% by the closing bell.

Tech shares also ran hot, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) shooting up 0.77%.

Energy stocks were on the winning team today, too. The S&P/ASX 200 Energy Index (ASX: XEJ) advanced 0.58%.

Finally, consumer staples shares proved to be a safe haven, evidenced by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)'s 0.11% rise.

Top 10 ASX 200 shares countdown

Lithium stock Liontown Ltd (ASX: LTR) took out our top index spot this Friday. Liontown shares enjoyed a significant 9.26% surge to $1.18 today.

That came despite no news or announcements from the company.

Here's the rest of today's best: 

Enjoy the weekend!

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Two of the ASX stocks are racing ahead of the 0.1% losses posted by the S&P/ASX 200 Index (ASX: XJO) in late morning trade today, while one is taking a tumble.

Here's what's grabbing investor attention.

ResMed shares slide on lower margins

The ASX 200 stock trailing the benchmark today is ResMed. This follows the release of the sleep disorder treatment company's fourth-quarter (Q4 FY 2026) results.

At the time of writing, ResMed shares are down 5.2%, changing hands for $29.84 each.

Overall, the company posted some solid results, including a 9% increase in Q4 revenue, which hit a record US$1.5 billion. Over the full FY 2026 year, ResMed reported revenue of US$5.7 billion, up 10% year on year.

The ASX 200 healthcare share also boosted its quarterly dividend by 10% to 66 US cents per share.

But ResMed shares may be coming under pressure, with the company's gross margin slipping 2.0% year on year to 58.8%. And Q4 free cash flow of US$404 million was down 21% from Q4 FY 2025.

Commenting on the results, ResMed CEO Mick Farrell said:

We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy.

Avita Medical shares soar on revenue upgrade

Unlike ResMed shares, Avita Medical shares are going through the roof today after the release of its second-quarter (Q2 2026) results.

Shares in the ASX regenerative medicine company are up 15.6% at the time of writing, trading for $1.48 apiece.

Investors are reacting enthusiastically, with Avita Medical reporting Q2 revenue of US$21.7 million, up 18% year over year and marking a new record.

And on the cost front, operating expenses of US$24.6 million were down 6% from Q2 2025.

The strong quarter saw management increase Avita's full-year 2026 net revenue guidance to the range of US$86 million to US$89 million, reflecting confidence in continued commercial execution.

The company said it expects to reach cash flow breakeven in Q4 2026.

Commenting on the results sending Avita Medical shares soaring today, CEO Cary Vance said:

We delivered a strong second quarter, with revenue growing 18% year-over-year and 13% sequentially. As Avita continues to expand utilisation in the US and build its presence in key international markets, our results reflect the strength of both our acute wound care portfolio and our commercial execution, led by RECELL and supported by Cohealyx and PermeaDerm.

Which brings us to…

James Hardie shares jump on earnings surge

Joining Avita Medical and ResMed shares in the headlines today, we find James Hardie.

Shares in the ASX 200 building materials company are up 3.9% at the time of writing, swapping hands for $42.41 apiece.

James Hardie also reported its June quarterly results today, which marks Q1 FY 2027 for the company.

Highlights for the three months include a 64% year-on-year increase in net sales to US$1.47 billion. And adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$422 million were up 79%.

James Hardie shares also look to be getting a boost, with the company increasing its full-year FY 2027 pro forma net sales growth target to 5.9% to 9.0%, with pro forma adjusted EBITDA growth in the range of 7.4% to 13.7%.

James Hardie CEO Aaron Erter noted:

Our strong first-quarter results reflect disciplined execution and continued above-market growth, rather than a meaningful improvement in the underlying U.S. housing market. We are not assuming a housing market improvement, but our performance and growth expectations support raising our full-year outlook.

The post Why James Hardie, Avita Medical and ResMed shares are turning heads on Friday appeared first on The Motley Fool Australia.