The ASX heavyweight surged 11% in the first two weeks of the month, riding a wave of optimism. But that rally hit a wall on Thursday, when the stock dropped 4.2% to $28, making it one of the day's biggest laggards.

So, is this just a minor hiccup for James Hardie shares, or a sign that the momentum has already fizzled out?

Risks investors shouldn't ignore

The reality is that James Hardie is not without its challenges.

The biggest concern remains its heavy exposure to the US housing market. If housing starts slow — or simply stays weak — demand for building materials could soften. That's been a key factor weighing on the share price recently, and it's not going away anytime soon.

There are also execution risks tied to its acquisition of AZEK. Integrating a large business is never simple. Management needs to merge operations smoothly, extract promised synergies, and keep costs under control. Any stumble here could quickly show up in earnings.

And then there's the broader backdrop. Investor sentiment toward cyclical and industrial stocks has been shaky. Even strong companies can get dragged lower when the market mood turns cautious, adding another layer of volatility for shareholders.

Strong foundations still in place

Despite those risks, it would be a mistake to write off James Hardie shares too quickly.

The roughly $15 billion company remains the global leader in fibre cement siding and trim, with a dominant position in the US — its most important market. That scale delivers real advantages, including pricing power and a competitive moat that few rivals can match.

Operationally, the business is still performing well. In its latest quarterly update, net sales jumped 30% to $1.24 billion for the three months to 31 December 2025. Adjusted EBITDA rose 26% to $329.9 million. Those are not the numbers of a company in trouble.

There's also a compelling long-term growth story unfolding.

The AZEK acquisition has significantly expanded James Hardie's addressable market. It's no longer just a siding business. It's building a broader outdoor living platform across decking, railing, and exterior solutions. If management executes well, this could unlock a new phase of growth.

What do experts think?

Most brokers are upbeat on James Hardie shares and rate them a buy. They have set an average 12-month price target of $39.53, which points to a potential gain of 41% at current levels.

According to broker Morgans, the outlook remains attractive. The firm has a buy rating on James Hardie with a price target of $45.75. Based on the current share price of $28, that implies potential upside of roughly 63%. That's a sizeable vote of confidence.

Foolish Takeaway

Short-term momentum may have stalled, and risks are clearly in play. But the underlying business still looks robust, with strong market positioning and meaningful growth drivers.

For investors, the key question isn't whether the share price dipped this week, it's whether the long-term story remains intact. Right now, the answer appears to be yes.

The post Warning sign? James Hardie shares may be losing momentum appeared first on The Motley Fool Australia.

That has been enough to shake confidence in parts of the market. Headlines have turned more cautious, and it is easy to focus on what could go wrong next.

But I think periods like this are worth looking at differently.

For long-term investors, pullbacks can create the conditions for building wealth.

Lower ASX share prices change the equation

When share prices fall, future return potential improves. 

That is a simple idea, but an important one.

A number of quality ASX shares are now trading well below their recent highs. Businesses like CSL Ltd (ASX: CSL), James Hardie Industries PLC (ASX: JHX), and Cochlear Ltd (ASX: COH) have seen significant declines, even though their long-term growth drivers remain in place.

That does not mean they will rebound immediately.

But starting from a lower entry point can make a big difference over time.

Short-term concerns are driving sentiment

There are clear reasons behind the recent selloff.

Rising oil prices, driven by tensions in the Middle East, have increased concerns about inflation and interest rates. At the same time, ongoing debates around artificial intelligence are creating uncertainty in parts of the technology sector.

These are real factors.

But markets tend to react quickly to uncertainty, sometimes more quickly than the underlying fundamentals change.

In many cases, I think what we are seeing is sentiment adjusting faster than business performance.

This is how long-term returns are built

Looking back, some of the best investment periods have followed market weakness.

The COVID-19 selloff in 2020 is a good example. Investors who were willing to buy during that period were often rewarded as markets recovered.

I am not suggesting that every downturn plays out the same way.

But I do think the principle holds.

Buying quality ASX shares when prices are lower can improve long-term outcomes, particularly if you remain invested and allow compounding to work.

Staying consistent matters more than timing

Trying to pick the exact bottom is extremely difficult. It usually becomes obvious only after the fact.

That is why I prefer a more consistent approach.

Adding to investments during periods of weakness, rather than waiting for perfect conditions, can help build positions over time without relying on a single decision.

Focus on quality

Not every ASX share that falls is an opportunity. Some declines reflect real challenges.

That is why I think it is important to focus on quality.

Businesses with strong balance sheets, competitive advantages, and clear growth drivers are more likely to recover and continue compounding over time.

For me, that is where the real opportunity lies during a selloff.

Foolish takeaway

The recent ASX share market selloff may feel uncomfortable, but I think it also creates opportunity.

Lower prices can improve long-term return potential, especially when applied to high-quality businesses.

There will always be uncertainty in markets.

But for investors with a long-term mindset, periods like this can be some of the most important times to stick with it and continue building positions.

The post Why the recent ASX share market selloff is a wealth-building opportunity appeared first on The Motley Fool Australia.

In fact, periods of uncertainty often see investors pull back from even the most established names. While that can be uncomfortable in the short term, it can also create opportunities to buy leading businesses at more attractive prices.

Here are three ASX blue chips that have fallen heavily and could be worth a closer look.

Cochlear Ltd (ASX: COH)

The first ASX blue chip that could be too cheap to ignore is Cochlear.

The hearing solutions company recently disappointed the market with a softer-than-expected result, driven in part by a slower rollout of its new Nexa system and margin pressure from product mix.

While this has weighed on sentiment, it does not change Cochlear's long-term position as a global leader in implantable hearing devices.

Demand for hearing solutions continues to grow due to ageing populations and increased awareness. Cochlear also benefits from a large installed base, which generates recurring revenue through upgrades and servicing.

If the company can execute on its product rollout and return to stronger growth, the current weakness could prove temporary.

CSL Ltd (ASX: CSL)

Another ASX blue chip that may be worth considering is CSL.

The biotech giant's shares have fallen sharply following a soft result and the unexpected CEO transition, which has created uncertainty around its near-term outlook.

The key issue has been weaker-than-expected performance in its CSL Behring division, particularly in immunoglobulin, alongside slower margin recovery than the market had anticipated.

However, CSL still operates in global healthcare markets with strong demand and high barriers to entry. Its therapies address serious medical conditions, and long-term growth drivers remain intact.

While challenges remain, the company's track record and market position suggest it has the capability to work through this period and return to more consistent growth.

James Hardie Industries plc (ASX: JHX)

A third ASX blue chip that could be trading at an attractive level is James Hardie Industries.

The building materials company has been under pressure due to concerns about housing market weakness, particularly in the United States.

Slower construction activity can weigh on demand for its fibre cement products, which has led to more cautious sentiment from investors.

However, James Hardie remains a leader in its category, with strong brand recognition and a history of gaining market share over time.

When housing activity eventually recovers, the company could be well placed to benefit. In the meantime, it continues to focus on innovation and expanding its product offering.

For investors willing to look beyond the near-term uncertainty, this could make it an interesting option at current levels.

The post Are these ASX blue chips now too cheap to ignore? appeared first on The Motley Fool Australia.

But big sell-offs can create big opportunities, especially when the long-term story remains intact.

Here are three ASX shares down 25% or way more that could be worth a serious look right now.

Pro Medicus Ltd (ASX: PME)

This $12 billion ASX share has been hammered, with the stock price down more than 38% over the past year. Yet the underlying business remains elite.

Pro Medicus provides radiology imaging software to hospitals and healthcare providers globally. It serves a niche, high-margin space with strong recurring revenue. Its Visage platform is widely regarded as best-in-class, giving it a powerful competitive moat.

Growth has been strong historically, driven by major contract wins in the US. And once hospitals adopt its system, switching costs are extremely high.

So what's the risk?

Valuation — even after the fall. Pro Medicus has long traded at a premium, and any slowdown in contract wins or growth can hit sentiment hard. Add in broader tech sector weakness and AI fears, and you've got a recipe for volatility.

Analyst sentiment remains broadly positive, with many still viewing the ASX share as one of the highest-quality growth names on the ASX. Most brokers see the healthcare stock as a buy with an average 12-month price target of $218.74. That points to a 76% upside at the time of writing.

James Hardie Industries plc (ASX: JHX)

James Hardie shares are down heavily from recent highs, caught in the downturn in US housing. They have lost 25% of value over 12 months.

But this ASX share is still a dominant global player in fibre cement siding, with strong pricing power and a proven ability to grow market share.

Recent results showed solid sales growth, even as costs and housing softness impacted profits. And the AZEK acquisition opens the door to a much larger outdoor living market.

The risks? Cyclicality.

James Hardie is highly exposed to US housing activity. If housing remains weak, volumes and earnings could stay under pressure.

That said, analysts remain constructive. Trading View data show that 15 out of 22 analysts rate the ASX share a buy or strong buy. They have set an average price target of $42.09, implying a potential gain of almost 50% for the next 12 months.

Cochlear Ltd (ASX: COH)

This popular ASX share has also fallen sharply from its highs, dragged down by margin concerns and softer growth expectations. In the past 12 months it has tumbled 34% to $175.04 at the time of writing.

But the long-term story remains compelling.

Cochlear is the global leader in implantable hearing devices, with a dominant market position and strong brand recognition. Demand is underpinned by ageing populations and increasing awareness of hearing solutions. That's a powerful structural tailwind.

Its products are also highly specialised, which creates strong barriers to entry and leads to sticky customer relationships.

So why the sell-off?

Margins and growth have come under pressure, and investors have been quick to re-rate high-PE healthcare names. Like many quality ASX shares, this stock has suffered from multiple compression rather than a collapse in fundamentals.

Analysts remain broadly positive. They seem to be more cautious though in the near term as the company works through cost pressures and growth expectations reset. The average 12-month price target sits at $249.58, which suggests a 43% upside.

The post 3 ASX shares down 25% (or more) to buy right now appeared first on The Motley Fool Australia.

James Hardie Industries PLC (ASX: JHX) jumped 7.5% on Wednesday, offering some relief after a tough month that saw shares fall 17%. Even with Wednesday's rally, the ASX 200 stock remains down around 25.7% over the past 12 months.

So, is this the start of a recovery — or just a temporary rebound?

Let's take a closer look.

Global leader fibre cement

One thing is clear: James Hardie still boasts serious strengths.

The $15 billion ASX 200 stock is the global leader in fibre cement siding and trim, with a dominant footprint in the US — its most important market. That scale gives it pricing power and a strong competitive moat, which few rivals can match.

It also continues to deliver solid top-line growth. Its latest results show the business is still performing well operationally. For the three months to 31 December 2025, net sales jumped 30% to $1.24 billion, while adjusted EBITDA rose 26% to $329.9 million.

And there's a major growth lever in play.

The acquisition of AZEK has significantly expanded its addressable market. James Hardie is no longer just a siding business. It's building a broader outdoor living platform spanning decking, railing, and exterior solutions. If executed well, this could unlock a new phase of growth.

Exposure risk US housing market

But the ASX 200 stock is not without risks.

The biggest concern remains exposure to the US housing market. If housing starts slow or remain weak, demand for building materials could come under pressure. That's been a key driver behind the recent share price decline.

There are also integration risks tied to the AZEK deal. Merging operations, extracting synergies, and managing costs will be critical — and any missteps could weigh on earnings.

On top of that, broader market sentiment toward cyclical and industrial stocks has been shaky, adding another layer of volatility.

So, what are the experts saying?

According to Morgans, the outlook remains compelling for the ASX 200 stock. The broker has placed a buy rating on James Hardie with a $45.75 price target.

Based on the current share price of $28.06, that implies potential upside of around 63% — a significant vote of confidence.

The bottom line?

James Hardie has been knocked down, but its core business remains strong. With market leadership, growth opportunities, and a more attractive valuation, this ASX 200 stock could be positioning for a comeback.

If housing conditions stabilise and execution stays on track, yesterday's rally might just be the beginning.

The post Down 25%! Is this resurgent ASX 200 stock a strong buy? appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 200 Index (ASX: XJO) heavyweight have surged 6.9% to $27.91 in early afternoon trade, snapping a weak run that saw the stock fall 17% over the past month. Even after today's bounce, James Hardie shares remain down around 26% over the past 12 months.

So, what's driving the rally?

Steep sell-off

There's no obvious company-specific news behind the move, which suggests something else is at play.

One likely explanation is a classic case of an overdone sell-off.

James Hardie shares have been caught in the broader downturn linked to US housing concerns, but its underlying business remains strong.

This is a company with a genuine competitive moat and pricing power. That is mainly because of its dominant position in fibre cement siding and trim, particularly in the US, where it generates most of its earnings.

Solid earnings surprise

That kind of market leadership doesn't disappear overnight. In fact, its latest results show the business is still performing well operationally. For the three months to 31 December 2026, net sales jumped 30% to $1.24 billion, while adjusted EBITDA rose 26% to $329.9 million.

There were some weaker points — operating income fell 15%, and net profit dropped 52% — but those declines reflect costs and timing factors rather than a collapse in demand.

Outdoor game-changer

Another reason investors may be stepping back in? Growth.

The acquisition of AZEK, a US outdoor living specialist, could be a game-changer. It significantly expands James Hardie's addressable market beyond siding into decking, railing, and broader exterior products.

In other words, the company is evolving into a more diversified building products platform. This opens the door to new revenue streams and long-term growth.

Softer housing factored in

And then there's the valuation of James Hardie shares.

After a steep pullback from previous highs, James Hardie shares are no longer priced for perfection. The market has already baked in softer housing conditions and uncertainty around integrating AZEK.

But if US housing stabilises over the next couple of years — and synergies from the acquisition start to flow — earnings could rebound in a meaningful way. That's what makes today's setup interesting.

Foolish Takeaway

Investors may be looking at James Hardie shares and seeing a high-quality operator trading at a cyclical discount, rather than at peak optimism.

The bottom line? With no clear news driving the jump, today's rally looks like a shift in sentiment. After a heavy sell-off, investors may be starting to recognise the underlying strength and long-term potential of this ASX industrial giant.

The post Why are James Hardie shares storming higher today? appeared first on The Motley Fool Australia.

Prices are falling, headlines are negative, and sentiment is weak. 

But in my opinion, this can sometimes be the best time to make a move.

A market creating opportunities beneath the surface

The broader share market has underperformed in recent months, but has not fallen dramatically.

The S&P/ASX 200 index (ASX: XJO) is down around 8.4% from its recent high, which is noticeable but not extreme.

But that does not tell the full story.

Beneath the surface, a number of ASX shares have been sold off heavily. In many cases, far more than the overall market.

And when I see that kind of divergence, I start paying attention.

Why buying cheap ASX shares can matter

Buying ASX shares after they have fallen significantly can provide something that I think is incredibly valuable.

A margin of safety.

If expectations are already low and sentiment is weak, it does not take much for things to improve. And when they do, share prices can move quickly.

That is where the potential for outsized returns comes from.

Of course, not every fallen share is a good opportunity. Some deserve to be down.

But when high-quality businesses are caught up in broader sell-offs, I think that is where things get interesting.

Where I am seeing value today

There are quite a few ASX shares that have pulled back sharply over the past year.

Online retailer Temple & Webster Group Ltd (ASX: TPW) is down around 58%. Healthcare giant CSL Ltd (ASX: CSL) has fallen roughly 42%.

Radiopharmaceutical company Telix Pharmaceuticals Ltd (ASX: TLX) is down about 50%, while footwear retailer Accent Group Ltd (ASX: AX1) has dropped close to 60%.

Even high-quality industrial names like James Hardie Industries Plc (ASX: JHX) and Cochlear Ltd (ASX: COH) are down around 35% and 37%, respectively.

These are not small moves.

And while each company has its own reasons for falling, I think it is important to recognise the broader context as well.

What is driving the sell-off?

There are a few key factors at play.

The conflict in the Middle East has pushed oil prices above US$100 per barrel, which is raising concerns about inflation and the potential for higher interest rates.

At the same time, artificial intelligence (AI) disruption concerns have been weighing on parts of the market, particularly software and growth stocks.

Put that together and you get a market that is more cautious, more selective, and in some cases, more pessimistic.

But I do not think that necessarily reflects the long-term outlook for many of these businesses.

Lessons from the past

One thing I often think about is how investors behaved during the COVID crash in 2020.

At the time, fear was widespread and uncertainty was high. But for those who were willing to step in and buy quality ASX shares at depressed prices, the returns that followed were significant.

I am not suggesting this is the same situation. But I do think the principle still applies.

Periods of weakness can create opportunities for long-term investors who are willing to look beyond the short-term noise.

The importance of a long-term mindset

If I am buying ASX shares that have fallen sharply, I am not doing it for a quick rebound.

I am doing it with a long-term mindset.

Some of these companies may take time to recover. There could be more volatility ahead. And not all of them will bounce back in a straight line.

But if the underlying businesses remain sound and continue to execute, I think the next decade could look very different from the past 12 months.

Foolish takeaway

Buying dirt-cheap ASX shares is not about chasing falling prices.

For me, it is about identifying quality businesses that have been caught up in broader sell-offs and buying them at more attractive levels.

With many ASX shares down significantly and the market off its highs, I believe there are opportunities available for patient investors.

The post Why I'd buy dirt-cheap ASX shares now and aim to hold them for a decade appeared first on The Motley Fool Australia.

For me, that means combining quality, growth, and a bit of resilience.

Here's why I would split the money across these four names.

Hub24 Ltd (ASX: HUB)

Hub24 continues to build momentum in a way that's hard to ignore.

It operates a wealth management platform that continues to attract funds from advisers and clients moving toward more sophisticated investment solutions.

What stands out to me is its ability to consistently grow funds under administration. That kind of growth can compound over time, especially as the shift toward managed platforms continues.

It's an ASX share that I think could look significantly larger in a decade than it does today.

James Hardie Industries Plc (ASX: JHX)

James Hardie Industries brings exposure to global construction and housing.

That might sound cyclical, and it is, but James Hardie has built a strong position in fibre cement products, particularly in the United States.

What I like is its combination of brand strength and long-term demand. Housing cycles will come and go, but over time, population growth and renovation activity tend to support demand for its products.

That makes it an ASX share I'd be comfortable holding through the ups and downs.

BHP Group Ltd (ASX: BHP)

BHP adds a different dimension to a portfolio.

It gives exposure to commodities like iron ore and copper, which play a key role in global infrastructure and electrification.

Copper in particular is becoming increasingly important, with demand linked to renewable energy, electric vehicles, and data centres.

BHP also has its Jansen potash project in Canada, which is expected to begin production in the coming years and could become a major contributor over time.

For me, this is about combining income with long-term thematic growth.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals is a higher-growth, higher-risk part of the portfolio.

It operates in radiopharmaceuticals, focusing on diagnostic imaging and cancer treatment.

This is a rapidly evolving area of healthcare, with significant global demand.

Telix has already made strong progress commercially, and I think it has the potential to continue expanding its product portfolio and geographic reach.

It won't be without volatility, but that's often where the biggest opportunities come from.

Foolish takeaway

Building long-term wealth in ASX shares doesn't require chasing trends or constantly trading.

For me, it's about owning a mix of businesses with strong positions and long-term potential. I think Hub24, James Hardie, BHP, and Telix offer exactly this.

The post How I'd invest $20,000 in ASX shares right now to help build long-term wealth appeared first on The Motley Fool Australia.

For example, the two blue-chip shares in this article have fallen by over 40% since this time last year, putting a big dent in investor portfolios and superannuation funds.

While that is disappointing, one leading broker appears to believe it could have created a compelling buying opportunity for investors.

Here are two beaten-down ASX 200 blue-chip shares that could be dirt cheap according to Morgans.

CSL Ltd (ASX: CSL)

While not impressed with this biotech's half-year results, Morgans thinks investors should be snapping up CSL shares this month. It has put a buy rating and $241.34 price target on them, which implies potential upside of almost 70% for investors.

Commenting on its buy recommendation, Morgans said:

1HFY26 result was softer and less clean than expected, with adjusted NPATA declining 7% and revenue modestly below forecasts. The result was further complicated by US$1.1bn in impairment charges, largely relating to Vifor and Seqirus, weighing on statutory earnings and sentiment. Importantly, FY26 guidance was maintained, despite Behring weakness and heightened scrutiny following the announced CEO transition, suggesting a 2H recovery, pointing to an execution reset, not structural impost, in our view.

The outlook looks supported through a combination of cost-outs, marketing initiatives, new product launches and diminishing headwinds, reinforced by the Board's urgency around operational delivery. We adjust FY26-28 forecasts modestly, with our PT decreasing to A$241.34. BUY.

James Hardie Industries plc (ASX: JHX)

Another ASX 200 blue chip share that Morgans is bullish on is building materials company James Hardie. It has put a buy rating and $45.75 price target on its shares. Based on its current share price of $29.46, this suggests that upside of 55% is possible for investors.

Morgans was pleased with James Hardie's performance in the third quarter and thinks now could be the time to buy. It explains:

JHX delivered a clean Q3 beat with sequential margin improvement, disciplined execution on AZEK integration, and early evidence that volumes in core Siding & Trim (S&T) are stabilising at low levels. While NPAT remains temporarily weighed by amortisation and higher interest, the underlying margin trajectory and synergy capture both point to improving earnings quality into FY27.

With US housing likely near the trough, we see medium-term upside as organic growth returns, synergies compound, and leverage falls toward <2.0x by 3Q28. We retain our BUY rating and lift our valuation to A$45.75/sh.

The post Down 40%: 2 ASX 200 blue-chip shares to buy appeared first on The Motley Fool Australia.

Buffett didn't build Berkshire Hathaway (NYSE: BRK.A) by jumping in and out of whatever was hot at the time. He focused on businesses with durable competitive advantages, strong returns on capital, capable management, and predictable earnings power. And, crucially, he tried to buy them at fair prices.

Not necessarily bargain-basement prices. Just fair ones.

It's not about cheap

One of the biggest misconceptions about Warren Buffett is that he only buys stocks when they look dirt cheap on a simple valuation metric.

That might have been closer to the truth early in his career. But over time, he shifted toward buying "a wonderful company at a fair price than a fair company at a wonderful price."

Quality matters more than a low multiple.

A company that can compound earnings at high rates for a decade doesn't need to look optically cheap to be a good investment. If its competitive position is strong enough, time does a lot of the work.

That's the mindset I try to apply when looking at ASX shares today.

What does quality actually mean?

When I think about quality, I'm looking for a few key traits:

Consistent revenue and earnings growth, high or improving returns on capital, strong balance sheets, products or services that are difficult to replicate, and a track record of disciplined capital allocation.

If those boxes are ticked, I'm far more comfortable paying what I consider to be a fair price.

And right now, I think there are several ASX shares that broadly fit that framework.

CSL Ltd (ASX: CSL)

CSL hasn't been a market darling lately. Its shares remain well below their prior highs, and the company has gone through leadership changes and a period of softer earnings momentum.

But I still see a global biotechnology leader with powerful competitive advantages in plasma therapies, vaccines, and specialty medicines.

CSL generates strong cash flow, invests heavily in research and development, and operates in markets with high barriers to entry. While it may not look cheap on traditional metrics, I think it is trading at a far more reasonable price relative to its long-term growth potential than it was a few years ago.

To me, that's closer to Warren Buffett-style fair value for quality.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share I consider quietly high quality.

It has built a dominant position in enterprise software for government and education clients across Australia and increasingly the UK. Its transition to SaaS has strengthened recurring revenue, lifted margins, and improved visibility.

It rarely looks cheap. But the consistency of its growth, low churn, and expanding customer base make it a strong long-term compounder in my view.

If I'm buying for the next 10 years rather than the next 10 weeks, I'm comfortable paying a fair multiple for that kind of reliability.

Breville Group Ltd (ASX: BRG)

Breville is a different type of quality story. It operates in consumer appliances, but it has built premium global brands in categories like coffee and food preparation. It has demonstrated an ability to innovate, expand geographically, and protect margins even in tougher retail environments.

After a period of market volatility and cost pressures, its shares are down heavily from their highs. In light of this, I now see a company with long-term global growth opportunities, especially in North America and Europe, trading at what I would consider a fair entry point.

That combination gets my attention.

James Hardie Industries (ASX: JHX)

James Hardie isn't immune to housing cycles. But over time, it has shown it can grow through them.

Its fibre cement products have strong brand recognition, particularly in the US, and the business benefits from structural trends such as home renovation and repair activity.

While short-term earnings can fluctuate with housing conditions, I believe the company's competitive position and pricing power make it a quality operator. At current levels, I think the valuation reflects cyclical uncertainty without fully discounting its longer-term potential.

That feels like the sort of setup Buffett would at least examine.

Foolish takeaway

The ASX share market has pockets that look stretched, and others that have quietly reset.

If I were taking a Warren Buffett-inspired approach today, I wouldn't be hunting for the cheapest stocks on the board. I'd be looking for high-quality businesses with durable advantages that are trading at fair, not inflated, prices.

For me, shares like CSL, TechnologyOne, Breville, and James Hardie broadly fit that description right now.

The post I'd listen to Warren Buffett and buy quality ASX shares at fair prices today appeared first on The Motley Fool Australia.

For me, that mix would include the three shares in this article. Each brings something different to the table, and together they offer exposure to travel, healthcare technology, and global building materials.

Qantas Airways Ltd (ASX: QAN)

Qantas has transformed over the past few years. It is no longer just a cyclical airline trying to survive the next downturn. I believe it is now a leaner, more disciplined operator with multiple earnings engines.

Jetstar continues to be a key growth driver, both domestically and internationally. The group's capacity discipline and focus on higher-yield routes have supported profitability, while a newer fleet should improve fuel efficiency and lower operating costs over time.

I also like the optionality from Project Sunrise, which has the potential to enhance productivity on long-haul routes. Combined with the strength of its loyalty business, Qantas looks more diversified than many people give it credit for.

With the airline now generating solid cash flow and returning capital to shareholders, I see Qantas shares as a compelling medium-term and long-term play.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one of the highest-quality growth stories on the ASX, in my view.

The company's Visage imaging platform continues to win large, multi-year contracts with leading hospitals and healthcare networks. What stands out to me is the sticky nature of these contracts. Once embedded, switching costs are high and revenue visibility improves dramatically.

Pro Medicus operates in a global medical imaging market that is still digitising and upgrading. Its technology is known for speed and scalability, which has helped it win business against much larger competitors.

Yes, the valuation is rarely cheap. But I believe this is one of those businesses where quality, execution, and long-term market opportunity justify paying a premium.

If I am investing with a 5 to 10 year horizon, I want exposure to ASX 200 shares like this.

James Hardie Industries plc (ASX: JHX)

James Hardie gives me exposure to the US housing and renovation cycle, but in a way that feels structurally advantaged.

The company is a leader in fibre cement building products, particularly in North America. Over time, it has steadily gained share as homeowners and builders shift away from traditional materials.

While housing activity can be cyclical, I believe James Hardie benefits from long-term trends such as repair and remodel demand, population growth, and the push for more durable, lower-maintenance materials.

Importantly, the business has demonstrated pricing power and a strong focus on margins. For me, that combination of market leadership and structural growth makes it more than just a housing bet.

Foolish takeaway

If I were deploying $5,000 today, I would be comfortable spreading it across Qantas, Pro Medicus, and James Hardie.

Qantas offers a revitalised airline with multiple earnings streams. Pro Medicus provides high-margin, global healthcare technology growth. James Hardie delivers exposure to US housing with structural advantages.

Together, I believe they offer a balanced blend of quality and growth that I would be happy to hold for years.

The post Why I would buy Qantas and these ASX 200 shares with $5,000 appeared first on The Motley Fool Australia.

After a sharp pullback, choppy earnings, and jitters over its major US acquisition, sentiment has turned fragile. Yet it's often at moments like this that high-quality businesses start to look mispriced.

Here are three reasons investors may want to consider James Hardie shares today.

Competitive MOAT, pricing power

First, it has a genuine competitive moat and pricing power. James Hardie is the global leader in fibre cement siding and trim, with a dominant position in the United States, which generates the bulk of its earnings.

Fibre cement is durable, fire-resistant, and increasingly preferred over vinyl and timber alternatives. That product advantage, combined with brand strength and distribution scale, gives the company meaningful pricing power. Even when housing activity softens, James Hardie has shown it can defend margins by adjusting prices and managing costs.

James Hardie recently announced its quarterly results for the three months to 31 December 2026. In the quarterly results, the ASX 200 share revealed that net sales rose by 30% to $1.24 billion.

Adjusted operating profit (EBITDA) rose 26% to $329.9 million, operating income (operating profit) declined 15% to $176.2 million, and net profit declined 52% to $68.7 million.

More added value per home

The AZEK acquisition opens a much larger growth runway. The purchase of the US outdoor living specialist significantly expands James Hardie's addressable market.

Instead of being primarily a siding company, it is building a broader exterior and outdoor living platform spanning decking, railing, and related products. While the market initially punished the stock on concerns about integration risk and debt, the strategic logic is clear.

The combined group can cross-sell products, deepen relationships with builders, and capture more value per home. If management executes well, the deal could drive earnings growth beyond the normal housing cycle and position the company as a more diversified building products powerhouse.

Attractive valuation

The valuation of James Hardie shares looks far more attractive after the reset. Following a steep decline from previous highs, James Hardie shares are no longer priced for perfection. The ASX share has rebounded this year by almost 15%, but it's still down 30% year to date at the time of writing.

The market has factored in softer housing conditions and integration uncertainty. Yet if US housing activity stabilises over the next couple of years and synergy benefits from AZEK continue to flow, earnings could rebound meaningfully.

In that scenario, today's valuation may prove conservative. Investors are effectively buying a high-quality operator at a cyclical discount rather than at peak optimism.

Of course, risks remain. Housing markets can be volatile, interest rates influence construction activity, and large acquisitions always carry execution risk. Governance issues in recent years have also weighed on sentiment.

UBS has a neutral rating on James Hardie shares with a price target of $41. That is a possible plus of 15%, at current levels.

The broker forecasts the business could generate US$606 million of net profit in FY26, US$698 million in FY27, and US$915 million in FY28. And increasing profit is usually a very useful tailwind for sending the share price higher.

The post 3 reasons to buy James Hardie shares today appeared first on The Motley Fool Australia.

The global building products business lost a lot of shareholder confidence last year, but its results are winning back investors bit by bit.

James Hardie recently announced its quarterly result for the three months to 31 December 2026. Let's remind ourselves what the business revealed.

Earnings recap of the ASX 200 share

In the quarterly result, the ASX 200 share revealed that net sales rose by 30% to $1.24 billion. Adjusted operating profit (EBITDA) rose 26% to $329.9 million, operating income (operating profit) declined 15% to $176.2 million, and net profit declined 52% to $68.7 million.

Broker UBS said that the EBITDA was 7% ahead of analyst expectations and the mid-point of guidance, though there is still weakness in some individual divisions. The company said that market conditions remain "challenged".

The business is still guiding that the FY26 fourth quarter EBITDA will be between $347 million to $378 million, compared to the current UBS estimate of $385 million.

Additionally, FY26 EBITDA guidance was raised to between $1.23 billion to $1.26 billion, compared to UBS' estimate of $1.27 billion.

Is the James Hardie share price a buy?

UBS explained that it sees both positive green shoots and challenges for the ASX 200 share. The broker said:

JHX did not provide formal guidance on FY27, but said it expects to return to organic growth in Siding & Trim, with a renewed emphasis on delivering fiber cement siding material conversion and associated PDG. In our view, the outlook for FY27 and the path to a recovery in US housing activity is still challenged by (1) persistently low consumer confidence, (2) ongoing housing affordability challenges, and (3) elevated housing inventory in key homebuilding states.

For FY27, we forecast EBITDA growth of 18% to $1.496bn, which assumes siding volumes +2% (R&R/SF broadly flat and PDG +2%) with ASP +2%, cost and commercial synergies of around $30mn each and a full-year contribution from AZEK.

Longer term, we expect JHX to benefit from the structural underbuild of US housing and the identified material conversion opportunities in both siding and decking. However, in the short term, we also expect the stock to track broader sentiment on the US housing cycle, where we note visibility over the shape of any recovery in activity is dependent on improving consumer confidence and greater support from lower mortgage rates.

UBS has a neutral rating on the business with a price target of $41, which is a possible rise of around 15%, if the broker turns out to be correct.

The broker forecasts the business could generate US$606 million of net profit in FY26, US$698 million in FY27 and US$915 million in FY28. Rising profit is usually a very useful tailwind for sending the share price of a business higher.

The post Is it time to buy this resurgent ASX 200 share? appeared first on The Motley Fool Australia.

At one point, the stock fell roughly 40% to 50% from its high amid concerns over a large US acquisition, softer earnings, and governance uncertainty. In the first weeks of 2026, James Hardie shares have staged a meaningful recovery and gained 18% in value to $36.54, at the time of writing.

Let's have a look why experts think there's more to come from the ASX share.

Market leadership and pricing power

James Hardie is the dominant fibre cement player in North America and Australia. Its brand recognition, distribution network, and product durability create a competitive moat that is difficult for rivals to replicate.

The leadership position of James Hardie shares have historically allowed the company to push through price increases, even in mixed demand environments. The addition of outdoor living products through its US expansion broadens James Hardie's addressable market and provides cross-selling opportunities.

Over time, management believes scale benefits and cost synergies can lift margins and support earnings growth.

Better than expected profit

Last week James Hardie released a third-quarter profit that exceeded expectations. The building products maker said in a statement to the ASX that its net sales rose 30% to US$1.2 billion, while operating income was US$176 million. The net sales figure was, however, inflated by the contribution of AZEK, which James Hardie bought mid-last year.

The company upgraded its full-year adjusted EBITDA guidance from US$1.2 to US$1.25 billion to US$1.23 to US$1.26 billion. It also upgraded the net sales outlook for both the siding and trim, and deck, rail & accessories divisions.

Cyclicality and execution risk

The flip side of the US presence is exposure to the housing cycle there. New construction, repairs and remodel activity are highly sensitive to mortgage rates and consumer confidence. Elevated interest rates have dampened housing demand, and volumes have been uneven across regions.

Valuation is another consideration. After rebounding, James Hardie shares are no longer priced for disaster. That means future gains will likely depend on earnings delivery rather than sentiment alone.

What do brokers see next?

Analyst views on James Hardie shares generally sit in the moderate buy to outperform range, with many price targets above recent trading levels. Forecasts point to gradual earnings improvement as cost savings flow through and housing markets stabilise.

The consensus expectation is not for explosive short-term growth, but for steady gains if management executes well and demand conditions normalise. Analysts have set the average 12-month price target for James Hardie shares at $41.77, a potential gain of 14% at current levels.

Morgans is feeling positive about the medium-term outlook of James Hardie shares. As a result, the broker has retained its buy rating with an improved price target of $45.75, a potential 25% upside. 

Foolish takeaway

James Hardie shares are not a straight-line growth story. They are cyclical, exposed to macro conditions. But the company also holds strong market positions, proven pricing power, and expansion opportunities in attractive categories.

If housing conditions improve and synergies are realised, the shares could continue trending higher. Investors should expect volatility, but long-term believers may see the recent swings as part of the journey rather than the end of the story.

The post Why James Hardie shares could keep charging higher appeared first on The Motley Fool Australia.

Two such examples are named below. Here's what analysts are recommending this month:

Catapult Sports Ltd (ASX: CAT)

Bell Potter thinks that this wearables and sports analytics company's shares could have major upside for investors over the next 12 months.

Last week, the broker retained its buy rating on the ASX 200 share with a reduced price target of $5.50. Based on the current Catapult Sports share price of $3.32, this suggests potential upside of 65% is possible between now and this time next year.

Bell Potter concedes that there is a chance that Catapult won't be an ASX 200 share for much longer. However, it continues to believe that it is one of only a handful of quality ASX tech stocks in the mid cap space. The broker explains:

Catapult has a March year end so will not report its next result till May and we do not expect much if any news flow between now and then. There is some potential for Catapult to be removed from the S&P/ASX 200 Index at the next rebalance in March – given the recent price fall and despite the equity raising in November – after only being included in September last year.

This potential removal has perhaps also contributed to the fall in the share price. In its favour, however, Catapult is still one of the few good quality tech stocks in the mid cap space – even if it gets removed from the 200 but stays in the 300 – and so any rebound in the sector will likely see Catapult move in tandem.

James Hardie Industries plc (ASX: JHX)

The team at Morgans thinks that this building materials company's shares are undervalued at current levels.

The broker recently put a buy rating and $45.75 price target on the ASX 200 share. Based on its current share price of $36.54, this implies potential upside of 25% for investors over the next 12 months.

Morgans was pleased with the company's third-quarter update and believes the tide could be turning in the key US market. It explains:

JHX delivered a clean Q3 beat with sequential margin improvement, disciplined execution on AZEK integration, and early evidence that volumes in core Siding & Trim (S&T) are stabilising at low levels. While NPAT remains temporarily weighed by amortisation and higher interest, the underlying margin trajectory and synergy capture both point to improving earnings quality into FY27.

With US housing likely near the trough, we see medium-term upside as organic growth returns, synergies compound, and leverage falls toward <2.0x by 3Q28. We retain our BUY rating and lift our valuation to A$45.75/sh.

The post These ASX 200 shares could rise 25% to 65% appeared first on The Motley Fool Australia.

One this week's outperforming companies is a national energy provider, one develops and manages data centres, and the third produces building materials.

Which fast-rising stocks am I talking about?

Read on!

ASX 200 stocks leaping higher this week

The first outperforming ASX 200 stock on my list for the week is NextDC Ltd (ASX: NXT).

Shares in the data centre operator and developer closed last Friday trading for $12.71. At time of writing, shares are changing hands for $14.28 each. This sees the NextDC share price up 12.4% for the week.

There was no fresh news out from the company this week. But NextDC shares look to have benefited from a broader rebound in US and Aussie tech stocks, following the sharp sell-off last week.

Moving on to the second fast-rising ASX 200 stock this week we have AGL Energy Ltd (ASX: AGL).

Shares in the Aussie energy provider closed last week trading for $8.95. Shares are currently trading for $10.16 each. This puts the AGL share price up 13.6% for the week.

Most of those gains were delivered on Wednesday. AGL shares closed up 11.8% on the day following the release of the company's half year results (H1 FY 2026).

AGL reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.09 billion for the six months, in line with H1 FY 2025.

While underlying net profit after tax (NPAT) was down 6% year on year to $353 million, management fine-tuned their FY 2026 underlying EBITDA guidance to the range of $2.02 billion to $2.18 billion. Full year NPAT guidance was narrowed to $580 million to $680 million.

Management also declared a fully franked interim dividend of 24 cents per share, up 4.3% from last year's interim payout. AGL shares trade on a fully franked 4.8% dividend yield.

Which brings us to…

Also racing higher

James Hardie Industries PLC (ASX: JHX) shares also raced ahead of the benchmark this week.

Shares in the building materials company closed last week trading for $32.46 and are currently swapping hands for $36.68. That sees this ASX 200 stock up 13.1% for the week.

James Hardie shares closed up 11.8% on Wednesday following the release of the company's third quarter results.

Highlights included a 30% increase in net sales for the three months to US$1.24 billion.

Adjusted EBITDA of US$330 million was up 26%.

The post 3 ASX 200 stocks smashing the benchmark this week appeared first on The Motley Fool Australia.

Let's see what the broker thinks of three very big results and whether it thinks these ASX 200 shares are now buys, holds, or sells. Here's what you need to know:

Commonwealth Bank of Australia (ASX: CBA)

Morgans was pleased with this banking giant's performance during the first half, highlighting that its earnings were comfortably ahead of expectations. This has seen the broker upgrade its earnings estimates materially.

And while Morgans has lifted its valuation, it remains bearish on the investment opportunity here. It has put a sell rating and $124.26 price target on CBA shares. It said:

CBA delivered a meaningful beat of 1H26 earnings expectations. We have materially upgraded our EPS forecasts after factoring in continuation of higher loan growth and benign credit loss environments. We expect DPS growth won't match EPS growth as we see approaching CET1 capital tightness. Target price lifted to $124.26. SELL retained, with potential TSR of -24% (including 3% cash yield) at current elevated prices and trading multiples.

CSL Ltd (ASX: CSL)

Morgans was disappointed with this biotech giant's half-year results, which were softer and less clean than it was expecting.

However, it was pleased to see the company reaffirm its guidance despite recent chaos. In light of this and its improving outlook, the broker has retained its buy rating with a lowered price target of $241.34. It said:

1HFY26 result was softer and less clean than expected, with adjusted NPATA declining 7% and revenue modestly below forecasts. The result was further complicated by US$1.1bn in impairment charges, largely relating to Vifor and Seqirus, weighing on statutory earnings and sentiment.

Importantly, FY26 guidance was maintained, despite Behring weakness and heightened scrutiny following the announced CEO transition, suggesting a 2H recovery, pointing to an execution reset, not structural impost, in our view. The outlook looks supported through a combination of cost-outs, marketing initiatives, new product launches and diminishing headwinds, reinforced by the Board's urgency around operational delivery. We adjust FY26-28 forecasts modestly, with our PT decreasing to A$241.34. BUY.

James Hardie Industries plc (ASX: JHX)

Finally, building materials company James Hardie impressed the broker with its third-quarter update. And with the US housing market likely near its trough, Morgans is feeling positive about its medium-term outlook.

In response, the broker has retained its buy rating with an improved price target of $45.75. It said:

JHX delivered a clean Q3 beat with sequential margin improvement, disciplined execution on AZEK integration, and early evidence that volumes in core Siding & Trim (S&T) are stabilising at low levels. While NPAT remains temporarily weighed by amortisation and higher interest, the underlying margin trajectory and synergy capture both point to improving earnings quality into FY27.

With US housing likely near the trough, we see medium-term upside as organic growth returns, synergies compound, and leverage falls toward <2.0x by 3Q28. We retain our BUY rating and lift our valuation to A$45.75/sh.

The post Buy, hold, sell: James Hardie, CSL, and CBA shares appeared first on The Motley Fool Australia.

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

Four ASX shares that are rising more than most today are listed below. Here's why they are jumping:

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is up 9% to $9.65. Investors have been buying this energy giant's shares following the release of its half-year results. Although AGL posted a decline in underlying net profit, it has updated its guidance for FY 2026. The company now expects full-year underlying EBITDA of $2.02 billion to $2.18 billion. This compares to its previous range of $1.92 billion to $2.22 billion. Its underlying net profit guidance was also tightened to $580 million to $680 million, from the previous range of $500 million to $700 million. This reflects improved consumer margins and lower than previously indicated operating costs due to disciplined cost management.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is up 8% to $171.38. This has been driven by the release of the banking giant's half-year results this morning. CBA reported a 6% increase in cash net profit to $5,445 million and lifted its interim dividend by 4% to $2.35 per share. CBA's CEO, Matt Comyn, said: "Economic growth strengthened during the half, driven by increases in consumer demand and rising investment in AI and energy infrastructure."

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's share price is up 3% to $22.99. This follows news that the pizza chain operator has appointed its new CEO. Domino's has named experienced global quick service restaurant executive Andrew Gregory as its incoming group CEO and managing director. The company notes that Mr Gregory will start with Domino's once his obligations to his current employer have been discharged. This will be no later than 5 August 2026. He most recently served as McDonald's senior vice president of global franchising, development and delivery in the US.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price is up 12% to $37.20. Investors have been buying this building materials company's shares following the release of its third-quarter update. The company reported a 30% jump in sales to US$1,239.8 million and a 26% lift in adjusted EBITDA to US$329.9 million. This growth was driven largely by the addition of the AZEK business following its recent acquisition. James Hardie's CEO, Aaron Erter, said: "In the third-quarter, we achieved or exceeded each of our financial commitments despite a mixed macro backdrop. We are taking actions to address the current market environment, including optimizing our manufacturing footprint and better aligning our cost structure with the slower, but stabilizing, pace of demand."

The post Why AGL, CBA, Domino's, and James Hardie shares are jumping today appeared first on The Motley Fool Australia.

The building products maker said in a statement to the ASX that its net sales rose 30% to US$1.2 billion, while operating income was US$176 million.

The net sales figure was, however, inflated by the contribution of AZEK, which James Hardie bought mid-last year.

Better-than-expected earnings

RBC Capital Markets said in a note to their clients that the company handily beat expectations on adjusted EBITDA, which came in at US$330 million, posting results 6.6% ahead of consensus.

They added that the company's guidance for earnings for the fourth quarter was unchanged, "although updates on synergy capture were solid'', referring to the savings James Hardie expects to capture following the AZEK takeover.

James Hardie Chief Executive Officer, Aaron Erter, said it was a solid result.

In the third-quarter, we achieved or exceeded each of our financial commitments despite a mixed macro backdrop. We are taking actions to address the current market environment, including optimizing our manufacturing footprint and better aligning our cost structure with the slower, but stabilizing, pace of demand. These actions will improve near-term profitability and better position the Company to profitably grow when conditions improve.

Adjusted net sales in the siding and trim division were down 2%, stripping out the contribution from AZEK; however, Mr Erter said the EBITDA margin improved significantly, driven by pricing and cost reduction measures.

Mr Erter added:

Our confidence in the combination of James Hardie and AZEK continues to be strong as customers respond to our differentiated products, leading brands, focus on innovation and investment across the value chain. We continue to make progress on the integration and have surpassed our FY26 cost synergy goal. Our progress to date reaffirms our confidence in hitting our US$125 million cost synergy target. On the commercial front, our early wins with dealers, contractors and homebuilders will drive meaningful revenue synergies in FY27 and beyond, demonstrating our potential to accelerate material conversion across exteriors and outdoor living.

Outlook upgraded

In terms of the outlook, the company's Chief Financial Officer Ryan Lada said in the siding and trim market, "conditions remain challenged, consistent with our prior expectations''.

Mr Lada said they expected the broader exteriors market to remain "mixed" in the near term, while in the deck, rail & accessories division, growth in the mid-single digits had carried through from the third quarter into the early fourth quarter.

The company upgraded its full-year adjusted EBITDA guidance from US$1.2 to US$1.25 billion to US$1.23 to US$1.26 billion, and also upgraded the net sales outlook for both the siding and trim, and deck, rail & accessories divisions.

James Hardie shares traded as high as $37.60 in early trade before settling back to be 12.2% higher at $37.34.

The post James Hardie shares rocket higher after earnings beat expectations appeared first on The Motley Fool Australia.