Stock of the Day

Ferguson (FERG)

$212.46

-$2.23 (-1.0%)

Market Cap: $42.47B

About Ferguson

Ferguson plc distributes plumbing and heating products in the United States and Canada. It offers plumbing and heating solutions to customers in the residential, commercial, civil/infrastructure, and industrial end markets.

The company also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, fabrication, and others, as well as heating, ventilation, and air conditioning products under the Ferguson brand name. In addition, it supplies pipes, valves, fittings, plumbing supplies, water and wastewater treatment products, and refrigeration products under Wolseley brand name. Further, the company provides after-sales support comprising warranty, credit, project-based billing, returns, maintenance, repair, and operations support. It sells its products through wholesale distributors, supply houses, retail enterprises, and online. Ferguson plc was founded in 1953 and is headquartered in Wokingham, the United Kingdom.

Ferguson Bull Case

Here are some ways that investors could benefit from investing in Ferguson plc:

• The current stock price is around $216, reflecting a strong performance in the market.
• Ferguson plc recently reported earnings per share of $2.50, significantly exceeding analysts' expectations, indicating robust financial health.
• The company has a solid return on equity of 34.63%, showcasing effective management and profitability.
• Ferguson plc has received multiple upgrades from analysts, with target prices ranging from $200 to $247, suggesting positive market sentiment.
• The firm has a consistent dividend payout, with a yield of 1.54%, providing investors with a steady income stream.

Ferguson Bear Case

Investors should be bearish about investing in Ferguson plc for these reasons:

• Despite recent growth, the stock has a relatively high P/E ratio of 25.96, which may indicate overvaluation compared to industry peers.
• The company has a debt-to-equity ratio of 0.83, which, while manageable, suggests some reliance on debt financing that could pose risks in a rising interest rate environment.
• Ferguson plc's net margin of 5.68% is modest, indicating that there may be limitations on profitability compared to competitors.
• Recent trading volumes have been higher than average, which could indicate increased volatility and risk for investors.
• Five analysts have rated the stock with a hold rating, suggesting that there may be uncertainty about its future performance.

Recent News

• Ferguson: Upgrade To Buy On Solid Execution And Growth Outlook (seekingalpha.com)
• Ferguson Files Form 10-Q (businesswire.com)
• Ferguson Enterprises Q3 Earnings: Margin Outperformance Justifies The Stock Rally (seekingalpha.com)
• Ferguson Enterprises Inc. (FERG) Q3 2025 Earnings Conference Transcript (seekingalpha.com)
• Ferguson Enterprises Inc. 2025 Q3 - Results - Earnings Call Presentation (seekingalpha.com)
• Ferguson Enterprises Raises Outlook After Posting Higher 3Q Sales (marketwatch.com)
• Ferguson Stock Is Rising. Strong Earnings Growth Makes Plumbing Exciting. (msn.com)
• Ferguson Stock Soars on HVAC Equipment Maker's Strong Results, Lifted Outlook (investopedia.com)
• Sarah Ferguson issues emotional statement as she makes secret trip overseas (msn.com)
• Ferguson Reports Third Quarter Results (businesswire.com)