Ferguson: More Appreciative Of A Long-Term Growth Story

The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(7min)CommentsSummaryFerguson Enterprises demonstrates robust long-term growth, driven by organic expansion, strategic M&A, and disciplined capital allocation.Ferguson reported 2025 revenues up 5% to $31.3B and adjusted EPS up 13% to $10.58, with operating margins nearing 10%.2026 outlook calls for low-to-mid single-digit sales growth and flattish margins, reflecting macro headwinds but continued megatrend tailwinds.Ferguson trades at a premium (24x trailing earnings); shares are fairly valued, but I would buy on dips into the lower $200s.Looking for a helping hand in the market? Members of Value In Corporate Events get exclusive ideas and guidance to navigate any climate. Learn More » JHVEPhoto/iStock Editorial via Getty Images Shares of Ferguson Enterprises (FERG) have been moving within their all-time highs again as markets at large have recovered and the AI trend seems fully intact. Investors like the long-term organic growth profile, consolidation opportunities, soundThis article was written byThe Value Investor27.76K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.