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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Explore the markets with our free course
Discover and learn how the range of markets you can trade on with IG Academy's online course – ‘Introducing the financial markets’.
Put learning into action
Try out what you’ve learned in this shares strategy article risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Trade on over 10,000 popular global stocks
- Protect your capital with risk management tools
- React to breaking news with out-of-hours trading on 70 key US stocks
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
