James Hardie stock drops 31% but remains a buy with strong growth and cost synergies post-AZEK deal

James Hardie (JHX) shares have fallen nearly 31% from their 52-week high, mainly due to its costly acquisition of AZEK. Despite this, the company is rated a 'buy' as it trades below its historical valuation average and benefits from a strong position in North American fiber cement siding and resilient repair and remodel markets. The AZEK acquisition strategically expands James Hardie into outdoor living, with cost synergies ahead of schedule, supporting future free cash flow growth. The stock offers double-digit return potential for long-term investors even without valuation multiple expansion.