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FERGFerguson Enterprises Inc.Sell5.6·$230.67+0.87%
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 MoatStable
  • Us Geographic Revenue ConcentrationDeteriorating
  • Three Consecutive Earnings BeatsDeteriorating
  • +1 more pillar — see the Why tab for full reasoning

Full reasoning →

Open full analysis

Ferguson Enterprises Inc. (FERG) Stock Analysis

Range Bound setup · Catalyst-Driven edge

SellValueGrowthModerate Confidence

Industrials · Industrial Distribution

Sell if holding. Multiple concerning factors at $230.67: Thin upside margin: 9.0%; 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

$230.67+9.0% A.UpsideScore 5.6/10#8 of 19 Industrial Distribution
QualityF-score8 / 9FCF yield
IncomeYield1.56%(5y avg 1.84%)Payout33.27%sustainable
Stop $219.07Target $251.48(analyst − 10%)A.R:R 1.7:1
Analyst target$279.42+21.1%19 analysts
$251.48our TP
$230.67price
$279.42mean
$310

Sell if holding. Multiple concerning factors at $230.67: Thin upside margin: 9.0%; Concentration risk — Geographic: United States (95.0%). Chart setup: RSI 52 mid-range, Bollinger mid-band. Score 5.6/10, moderate confidence.

Passes 8/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 16d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.

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

Recent developments

updated 2026-07-26
TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Mon, Aug 10, 202616d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (3/4)
Positive insider activity
Risks
Concentration risk — Geographic: United States (95.0%)
Thin upside margin: 9.0%
Leverage penalty (D/E 1.0): -0.5

Key Metrics

P/E (TTM)22.5
P/E (Fwd)18.4
Mkt Cap$44.7B
EV/EBITDA16.4
Profit Mgn6.3%
ROE
Rev Growth3.6%
Beta1.12
Dividend1.56%
Rating analysts31

Quality Signals

Piotroski F8/9

Options Flow

P/C2.24bearish
IV48%normal

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

10 dimensions · all in-band

GatesMomentum 4.5<5.5 (soft — BUY_NOW allowed but watch)Momentum 4.5>=4.5A.R:R 1.7 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 16d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Moderate
RSI
52 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $218.54Resistance $240.05

Price Targets

$219
$251
A.Upside+9.0%
A.R:R1.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Analyst Consensus

Analysts31
Consensus4.0/5
Avg Target$279

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-10 (16d)

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. Multiple concerning factors at $230.67: Thin upside margin: 9.0%; Concentration risk — Geographic: United States (95.0%). Chart setup: RSI 52 mid-range, Bollinger mid-band. Prior stop was $219.07. Score 5.6/10, moderate confidence.

What is the FERG stock price target?

Take-profit target: $251.48 (+9.0% upside). Prior stop was $219.07. Stop-loss: $219.07.

What are the risks of investing in FERG?

Concentration risk — Geographic: United States (95.0%); Thin upside margin: 9.0%; Leverage penalty (D/E 1.0): -0.5.

Is FERG overvalued or undervalued?

Ferguson Enterprises Inc. trades at a P/E of 22.5 (forward 18.4). TrendMatrix value score: 6.1/10. Verdict: Sell.

What do analysts say about FERG?

31 analysts cover FERG with a consensus score of 4.0/5. Average price target: $279.

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: REZI (Resideo Technologies, Inc.) · MSM (MSC Industrial Direct Company, ) · WCC (WESCO International, Inc.) · FAST (Fastenal Company) · GWW (W.W. Grainger, Inc.)
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