From Yahoo Finance: 2025-06-09 14:13:00

James Hardie Industries plc (JHX) has a bullish thesis, with shares trading at $25.76. Their proposed acquisition of AZEK aims to bring together two leading exterior building products. Management forecasts $500M in commercial synergies by FY26, but success depends on distributors’ willingness. Margins are expected to expand, with combined EBITDA surpassing $2.1B by FY28.

While the integration risk is present, JHX remains a well-run compounder with expanding margins and strong cash generation. The acquisition of AZEK is seen as a margin-expansion story with potential for index inclusion tailwinds. Investors willing to stomach the risks may find value in the long-term structural growth opportunities both companies offer.

Despite not being one of the 30 Most Popular Stocks Among Hedge Funds, JHX has 12 hedge fund portfolios holding it at the end of the first quarter. While there is potential for JHX as an investment, some AI stocks may offer greater promise for higher returns with limited downside risk. For those interested in AI stocks, a free report on the best short-term AI stock is available.

Read more: James Hardie Industries plc (JHX): A Bull Case Theory