Ferguson Enterprises Inc. (FERG) Stock Price & How to Invest

Ferguson sells the products that go inside buildings: pipe, valves, fittings, water heaters, HVAC equipment, fixtures, waterworks materials and industrial MRO supplies. It buys from thousands of manufacturers and resells through a North American network of roughly 1,700 branches, distribution centers and counter locations, supported by e-commerce and a large outside sales force. Customers are mostly trade professionals (plumbing and mechanical contractors, HVAC installers, municipalities, industrial plants and homebuilders) rather than consumers, and roughly all of the revenue is generated in the United States with a smaller Canadian business. Revenue is about ~$31.5B on a trailing twelve month basis against a market capitalization near ~$47.4B.

The economics are the classic distributor set: gross margin around ~31%, operating margin in the ~9% to ~11% range depending on the quarter, low capital intensity and cash conversion strong enough to fund both acquisitions and buybacks. Growth comes from three places that do not always move together: end-market volume, price and product mix, and bolt-on acquisitions in a fragmented market where Ferguson still holds only a mid-single-digit share. The company completed its move to a US domicile and a New York listing and shifted its reporting year to the calendar, so the quarter ended June 30, 2026 is now the second quarter of fiscal 2026 rather than a mid-year fiscal period. In that quarter net sales rose ~4.6% to ~$8.75B with non-residential up ~8% and residential demand still subdued, which is the tension the stock trades on.

Ferguson's revenue is tied to construction and repair activity, which is cyclical and rate-sensitive, and US residential demand has been weak through 2026 with no confirmed inflection. Distributors also carry price risk in both directions: commodity deflation in categories like copper tube and PVC pipe reduces revenue without reducing the work involved, while inflation flatters growth that is not volume. Gross margin has been slipping modestly (down about ~20 basis points year over year in the June quarter), and a distributor operating near ~10% operating margin has limited room to absorb that plus wage inflation. Tariffs and supply chain disruption affect both product cost and customer project timing. Finally, an acquisition-supported growth algorithm depends on continuing to find and integrate targets at sensible prices, which competitors are also trying to do.

19 analysts publish price targets on FERG, averaging $284.32 against a $244.94 price as of August 2026, or +16.1%. The published targets run from $235.00 to $325.00, a moderate spread, and the ratings split 13 buy, 7 hold, 1 sell. Over the last six months there have been 10 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full FERG forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on Ferguson Enterprises Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Non-residential and large capital projects. Commercial, mechanical, industrial and waterworks work has carried growth while housing has not, with non-residential revenue up roughly ~8% in the June 2026 quarter. The most optimistic published target, $325.00, assumes this works close to its best case.

The case against. Ferguson's revenue is tied to construction and repair activity, which is cyclical and rate-sensitive, and US residential demand has been weak through 2026 with no confirmed inflection. The most pessimistic target, $235.00, is roughly what FERG is worth if this bites instead.

Read the full bull and bear case on FERG, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Ferguson Enterprises Inc.'s investor relations page or your broker.

• Market cap: ~$47.4B
• Revenue (TTM): ~$31.5B
• Q2 2026 net sales (quarter ended June 30): ~$8.75B, up ~4.6% year over year
• Q2 2026 diluted EPS: ~$3.43, up ~6.9%
• Adjusted operating margin (Q2 2026): ~10.7%
• Net debt / adjusted EBITDA: ~1.3x (net debt ~$4.5B)

At roughly ~$245 per share the stock trades near ~24x trailing earnings, above its own five-year median of about ~21x and well above a typical industrial distributor multiple, which is the market paying for scale and consistency rather than for growth. Management raised 2026 guidance to mid-single-digit net sales growth with an adjusted operating margin of roughly ~9.5% to ~9.8%. The multiple leaves little cushion if residential demand stays flat into 2027, since most of the current earnings growth is coming from non-residential volume, acquisitions and share count reduction rather than a broad recovery.

If you want FERG exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.

Other names that sit close to FERG: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get FERG exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it (FIW, PHO, PIO), which spreads the position across many companies. Or build it into a focused thematic portfolio, so FERG sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where FERG fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

Ferguson is a scale distributor whose earnings track construction activity and whose value rests on branch density, service and steady buybacks, priced at roughly ~24x trailing earnings with residential demand still waiting to turn.

Whether FERG is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is FERG a buy or a sell?, and where the stock could go from here in the FERG stock forecast.

For income investors, whether FERG pays a dividend and how the payout looks is covered in does FERG pay a dividend? And to weigh FERG against a peer, read the full side-by-side comparisons: FERG vs WSO and FERG vs FAST.