Why the James Hardie Share Price Rose Today

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What’s Happening to James Hardie’s Share Price?

Since shares in James Hardie [ASX:JHX] closed at $11.85 on the 16th of January, they have risen strongly to trade at $15.62 at the time of writing today.

Why Did This Happen to James Hardie Shares?

The stock market is pricing in stronger earnings to come for the company. The company is exposed to the residential and commercial building sectors, primarily in Australia, the US and Europe. Its major product is fiber cement.

What Now for James Hardie?

If you’re bullish on construction in Europe, the US and Australia, as I am for reasons explained here , James Hardie has a bright outlook for the foreseeable future. The stock market seems to be confirming this view, which is why it’s rerating the stock higher. One risk to be aware, however, is the level of liabilities the company is exposed to in relation to compensation payouts for issues in previous years.

Callum Newman
Editor, The Daily Reckoning

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Callum Newman

Callum Newman

Callum Newman is the editor of The Daily Reckoning and Associate Editor of Cycles, Trends and Forecasts. He also hosts The Daily Reckoning Podcast. Originally graduating with a degree in Communications, Callum decided financial markets were far more fascinating than anything Marshall McLuhan (the ‘medium is the message’) ever came up with. Today Callum spends his day reading and researching why currencies, commodities and stocks move like they do. So far he’s discovered it’s often in a way you least expect. To have Callum’s thoughts and insights on the current state of the currency, commodities and stock markets delivered straight to your inbox, take out a free subscription to The Daily Reckoning here.

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