We recently published a list of 10 Worst Performing Large Cap Stocks to Buy According to Analysts. In this article, we are going to take a look at where James Hardie Industries plc (NYSE:JHX) stands against other worst performing large cap stocks to buy according to analysts.
How Did The Market Perform in Q4 2024?
On January 21, Russell Investment released its Equity Factor report highlighting key trends and performances in global equity markets during the fourth quarter of 2024. The period was marked by significant events, including the conclusion of the US presidential election, which led to heightened expectations of economic growth, deregulation, and lower taxes. These factors contributed to a robust return of 2.7% for the Russell 1000 Index, which tracks the performance of large-cap US companies by market capitalization.
READ ALSO: 10 Best Performing Large Cap Stocks to Buy According to Analysts and 10 Best Small-Cap Growth Stocks to Buy Now.
On the other hand, Developed ex-US Large Cap and Emerging Markets faced declines of 7.4% and 7.8%, respectively. This downturn was attributed to political instability in countries like France and Germany, as well as uncertainty surrounding potential US tariffs. The divergence in performance extended to small-cap stocks as well, with the Russell 2000 Index experiencing a slight increase of 0.3%, while the Developed ex-US Small Cap Index declined by 7.8%.
As per the report, Russell Investments’ global factor portfolios showed varied performance during the quarter. Meanwhile, the Global Large Cap Growth and Momentum portfolios outperformed their benchmarks with excess returns of 2.5% and 1.1%, respectively. On the other hand, the Global Large Cap Low Volatility, Size, Value, and Quality portfolios underperformed, with excess returns ranging from -1.4% to -0.2%. This marked a shift from the previous quarter, where Value and Low Volatility were the top performers.
Moreover, the performance of factor portfolios varied across regions. Meanwhile, the Momentum and Growth factors showed consistent outperformance across US and non-US markets, with Momentum delivering excess returns between +0.1% and +2.1%. However, Growth underperformed in Emerging Markets. On the other hand, the Low Volatility factor underperformed in all regions except Emerging Markets, where it outperformed by +1.0%.
Our Methodology
To curate the list of 10 worst-performing large-cap stocks to buy according to analysts, we used the Finviz stock screener. We aggregated a list of large-cap stocks that have performed negatively over the past year, however, analysts still see upside potential over the next 12 months. Next, we cross-checked the analyst upside potential of each stock from CNN and ranked these stocks in ascending order of analysts’ upside potential. We have also added the number of hedge funds holding each stock, sourced from Insider Monkey’s Q4 2024 database. Please note that the data was collected on February 28th, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a house with its exterior siding made from the company’s fiber cement building materials.
James Hardie Industries plc (NYSE:JHX)
Market Capitalization: $13.38 Billion
1-Year Performance: -21.59%
Number of Hedge Fund Holders: 5
Analyst Upside Potential: 18.55%
James Hardie Industries plc (NYSE:JHX) makes building materials, primarily from fiber cement and fiber gypsum. It manufactures a variety of building materials like siding, interior linings, and backer boards. These products are used both inside and outside buildings. The company operates internationally with its geographic reach expanding to North America, Asia Pacific, and Europe.
James Hardie Industries plc (NYSE:JHX) has been facing a series of challenges ranging from subdued consumer demand in North America to inflation in raw material prices especially pulp and cement, which has put pressure on the company’s margins. As a result of these headwinds, the company during its fiscal third quarter of 2025 reported net sales of $953 million, down 3% compared to the previous year’s record third quarter. The adjusted EBITDA margins also decreased slightly by 120 basis points. Management noted they are managing to mitigate the impact of lower volumes and higher raw material costs through cost control and efficiency measures.
Despite these challenges, analysts have a positive outlook for James Hardie Industries plc (NYSE:JHX) as on February 24, Jefferies analyst Ramoun Lazar maintained a Buy rating on the stock with a price target of A$60. It is one of the worst-performing large-cap stocks to buy according to analysts.
Overall, JHX ranks 6th on our list of worst performing large cap stocks to buy according to analysts. While we acknowledge the potential of JHX as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JHX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.