James Hardie (JHX) Loses 20.9% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - James Hardie (JHX) has experienced significant selling pressure, resulting in a 20.9% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling oversold conditions [2] - JHX's current RSI reading of 26.98 suggests that the heavy selling may be exhausting, indicating a potential for the stock to bounce back towards its previous equilibrium [5] Group 2: Fundamental Indicators - Analysts covering JHX have raised earnings estimates for the current year, leading to a 2.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7] - JHX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8]