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FERGFerguson Enterprises Inc.Sell5.1·$244.94-1.28%
SellModerate Confidence
Investment thesis

Ferguson has beaten earnings estimates in three consecutive quarters — including a roughly 24% outperformance two quarters ago — and offers roughly 8.7% upside to its analyst-derived take-profit target at a reward-to-risk ratio of 1.67-to-1; however, quality metrics are below average with no identifiable competitive moat, roughly 95% of revenue is concentrated in a single geography, and the stock has recently dipped below its 200-day moving average in what technicals characterize as a pullback within a still-rising uptrend rather than a confirmed breakdown.

Thesis pillars

  • Quality Deficit No Competitive MoatDeteriorating
  • Us Geographic Revenue ConcentrationImproving
  • Three Consecutive Earnings BeatsImproving
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Ferguson Enterprises Inc. (FERG) Stock Analysis

Momentum Cont setup

SellModerate Confidence

Industrials · Industrial Distribution

Sell if holding. At $244.94, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.1%; Concentration risk — Geographic: United States (95.0%).

Ferguson distributes plumbing, HVAC, PVF, and water/wastewater products across 1,746 branches in the U.S. and Canada, targeting a $340 billion North American residential and non-residential construction market. The U.S. segment contributed 95% of net sales in fiscal 2025, split... Read more

$244.94+5.1% A.UpsideScore 5.1/10#16 of 19 Industrial Distribution
QualityF-score6 / 9FCF yield
IncomeYield1.43%(5y avg 1.83%)Payout33.27%sustainable
Stop $227.79Target $257.54(analyst − 10%)A.R:R 0.6:1
Analyst target$286.16+16.8%19 analysts
$257.54our TP
$244.94price
$286.16mean
$235
$325

Sell if holding. At $244.94, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.1%; Concentration risk — Geographic: United States (95.0%). Chart setup: Trend continuation, RSI 57, MACD bullish. Score 5.1/10, moderate confidence.

Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 85d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.

news + 30-day 8-K events · 5-min refresh

Recent developments

updated 2026-08-15
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Mon, Nov 9, 202685d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Risks
Concentration risk — Geographic: United States (95.0%)
Thin upside margin: 5.1%
Leverage penalty (D/E 1.1): -0.5

Key Metrics

P/E (TTM)24.1
P/E (Fwd)19.5
Mkt Cap$47.4B
EV/EBITDA17.7
Profit Mgn6.3%
ROE
Rev Growth4.6%
Beta1.12
Dividend1.43%
Rating analysts30

Quality Signals

Piotroski F6/9

Options Flow

P/C0.43bullish
IV53%elevated
Max Pain$360+47.0% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHGeographicUnited States95%
    10-K Item 1: 'The United States segment contributed 95% of net sales in each of fiscal years 2025, 2024 and 2023'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.

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Methodology · Editorial policy & full disclaimer

Rating Breakdown

1 floor-breaker

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
3.4
Revenue Growth
3.7
GatesA.R:R 0.6 < 1.5@spotMomentum 5.1<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.1>=4.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 85d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARMomentum ContSuitability: Moderate
RSI
57 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $222.47Resistance $267.84

Price Targets

$228
$258
A.Upside+5.1%
A.R:R0.6:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! asymmetry at 0.6 (below the engine's 1.5 threshold)@spot

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-11-09 (85d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is FERG stock a buy right now?

Sell if holding. At $244.94, A.R:R 0.6:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 5.1%; Concentration risk — Geographic: United States (95.0%). Chart setup: Trend continuation, RSI 57, MACD bullish. Prior stop was $227.79. Score 5.1/10, moderate confidence.

What is the FERG stock price target?

Take-profit target: $257.54 (+5.1% upside). Prior stop was $227.79. Stop-loss: $227.79.

What are the risks of investing in FERG?

Concentration risk — Geographic: United States (95.0%); Thin upside margin: 5.1%; Leverage penalty (D/E 1.1): -0.5.

Is FERG overvalued or undervalued?

Ferguson Enterprises Inc. trades at a P/E of 24.1 (forward 19.5). TrendMatrix value score: 5.6/10. Verdict: Sell.

What do analysts say about FERG?

30 analysts cover FERG with a consensus score of 4.0/5. Average price target: $286.

What does Ferguson Enterprises Inc. do?Ferguson distributes plumbing, HVAC, PVF, and water/wastewater products across 1,746 branches in the U.S. and Canada,...

Ferguson distributes plumbing, HVAC, PVF, and water/wastewater products across 1,746 branches in the U.S. and Canada, targeting a $340 billion North American residential and non-residential construction market. The U.S. segment contributed 95% of net sales in fiscal 2025, split roughly two-thirds from repair/maintenance/improvement and one-third from new construction; no single customer exceeded 1% of net sales.

Related stocks: FAST (Fastenal Company) · XMTR (Xometry, Inc.) · MSM (MSC Industrial Direct Company, ) · GWW (W.W. Grainger, Inc.) · WCC (WESCO International, Inc.)
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