Ferguson Enterprises Inc. (FERG)

In the past six months, Ferguson's stock price has been impacted by several events. Q3 FY25 earnings exceeded estimates, leading to a 13% surge in shares, while Q4 FY25 earnings also beat estimates, resulting in an 8.53% increase in pre-market trade. However, Q1 FY26 earnings missed analyst expectations, causing shares to drop 7% in early trading. Ferguson Enterprises Inc. became the new parent company of Ferguson plc, completing a corporate restructure to domicile the ultimate parent company in the United States. Bernstein initiated coverage with an "Outperform" recommendation, and JPMorgan raised its price target to $245. The stock has shown a significant increase, rising by 39.26% in the last six months and 17.58% over the last year.

Demand for Ferguson Enterprises, Inc.'s products and services is influenced by the cyclical nature of construction markets and RMI projects. While the company's diversified business model helps to cushion against market fluctuations, residential end markets have experienced subdued demand due to factors like higher interest rates. Non-residential markets, especially large capital projects, have shown resilience and growth. Expected margin decline in certain periods is largely attributable to seasonality, and weakness in residential HVAC and waterworks markets has also been noted.

Ferguson Enterprises, Inc. (FERG) is a leading value-added distributor serving specialized professionals in the North American residential and non-residential construction markets, operating within the Industrials sector, specifically in Industrial Distribution and Wholesale Distributors. The company provides a wide array of products and services, including plumbing, HVAC, appliances, lighting, PVF, and water and wastewater solutions, along with customized solutions such as virtual design, fabrication, and project management. Ferguson manages various brands, including Durastar, Avallon, and Signature Hardware.

Ferguson Enterprises, Inc. has an extensive geographic footprint primarily across North America, with operations in the United States and Canada. The company's headquarters are located in Newport News, Virginia, and it maintains a vast network of approximately 1,700 locations, including distribution centers and branches, placing it within 60 miles of 95% of its North American customers. The U.S. market accounts for 95% of its revenue, with Canada contributing the remaining 5%.

In the past year, Ferguson Enterprises, Inc. has maintained a positive brand reputation, debuting on the 2025 Fortune 500 list at position 146. The company is recognized for its strong industry relationships, expert associates, world-class supply chain, and value-added solutions. No significant negative events or controversies affecting its brand reputation were reported during this period.

Ferguson Enterprises, Inc. has a high level of institutional ownership, with approximately 85% to 95% of the company's shares held by institutional investors such as Vanguard Group Inc and BlackRock, Inc. Individual insiders own a small percentage, typically less than 1% of the company's stock.