Stock of the day: James Hardie Industries
Explore how James Hardie's US market exposure and bond yield fluctuations impact its stock performance.
(AI video summary)
This video was created on 5 November for IG audiences by ausbiz.
ASX code: JHX
Impact of US market exposure on stocks
James Hardie, a renowned company with substantial US market exposure, is under scrutiny amid potential political and economic shifts. A note from Macquarie suggests that a Republican sweep could benefit some Australian equities, including James Hardie.
Potential changes in US policy could create favourable conditions for businesses operating internationally. However, James Hardie’s share price has seen a considerable decline, dropping nearly 17% from its September highs. Recent US housing data and updates from competitors indicate a soft outlook, raising questions about how external factors are influencing the ASX 200 listed company.
Navigating volatility and long-term potential in stocks
Traders need to understand both short-term volatility and long-term potential. Despite recent downturns, James Hardie remains a viable option. Experts note that US interest rate cuts and weather events could drive demand for its products. A gradual investment strategy, buying during price declines, might mitigate risks and enable capitalisation on future growth. This approach balances short-term fluctuations with a long-term outlook, promoting strategic timing for market entries and exits.
Bond yields and their influence on stock prices
Understanding the correlation between stocks like James Hardie and bond yields is crucial. Currently, bond yields are at an 11-month high, with future interest rates being a key variable. Higher yields often mean tougher conditions for housing-related stocks, explaining caution around James Hardie.
Grasping this relationship provides insights into market sentiment, allowing traders to adjust strategies based on broader indicators like bond yields that reflect market trends.
Interested in becoming an investor? Explore IG's advanced trading platforms.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 13,000 popular global stocks
- Protect your capital with risk management tools
- Deal on 70 key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
