James Hardie (JHX) Laps the Stock Market: Here's Why
The most recent trading session ended with James Hardie (JHX) standing at $25.35, reflecting a +1.93% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 1.05% for the day. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq increased by 1.64%.
Coming into today, shares of the fiber cement maker had lost 0.72% in the past month. In that same time, the Construction sector lost 5.37%, while the S&P 500 lost 2.21%.
Analysts and investors alike will be keeping a close eye on the performance of James Hardie in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2023.
JHX's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $3.77 billion. These results would represent year-over-year changes of +6.62% and -0.32%, respectively.
It is also important to note the recent changes to analyst estimates for James Hardie. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. James Hardie currently has a Zacks Rank of #3 (Hold).
With respect to valuation, James Hardie is currently being traded at a Forward P/E ratio of 17.21. This signifies a premium in comparison to the average Forward P/E of 15.11 for its industry.
It's also important to note that JHX currently trades at a PEG ratio of 2.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Building Products - Miscellaneous industry had an average PEG ratio of 1.56 as trading concluded yesterday.
The Building Products - Miscellaneous industry is part of the Construction sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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James Hardie Industries PLC. (JHX) : Free Stock Analysis Report
