Ferguson Enterprises Inc Stock Moved Up by 3.68% on Feb 24: Key Drivers Unveiled

Ferguson's stock experienced upward movement today primarily driven by its strong financial performance in calendar year 2025 and investor confidence in its capital allocation strategies. The company announced impressive full-year results for 2025, reporting a 5.0% increase in sales to $31.3 billion, along with significant improvements in both gross and operating margins. Diluted earnings per share (EPS) surged by 24.2%, and adjusted diluted EPS also saw a substantial rise of 13.4%.

Beyond the earnings beat, the company showcased robust cash generation, reporting $2.2 billion in operating cash flow. Furthermore, Ferguson demonstrated a commitment to returning capital to shareholders, having declared dividends of $3.38 per share for the year and repurchased $0.9 billion in shares. Strategic investments also contributed to growth, with eight acquisitions completed during the year, adding over $300 million in annualized revenue. These financial strengths and shareholder-friendly actions appear to have outweighed initial concerns from some investors regarding the relatively modest low to mid-single-digit sales growth guidance for calendar year 2026 and ongoing weakness in residential end markets.

Despite residential markets showing some softness, Ferguson's non-residential business demonstrated strong performance, with a 10% increase in revenue in the fourth quarter, supported by activity in waterworks, commercial, and mechanical sectors. Analyst sentiment remains generally positive, with a consensus "Moderate Buy" rating and favorable outlook for the stock. Institutional investors hold a significant portion of the company's stock, and several have recently increased their stakes, indicating continued institutional confidence.

Technically, Ferguson Enterprises Inc (FERG) shows a MACD (12,26,9) value of [5.00], indicating a neutral signal. The RSI at 46.47 suggests neutral condition and the Williams %R at -92.70 suggests oversold condition. Please monitor closely.

Ferguson Enterprises Inc (FERG) is in the Cyclical Consumer Products industry. Its latest annual revenue is 30.76B, ranking 4 in the industry. The net profit is 1.86B, ranking 5 in the industry. Company Profile

Over the past month, multiple analysts have rated the company as BUY, with an average price target of 263.46, a high of 300.00, and a low of 204.56.

Company Specific Risks:

• Projected 2026 operating margin guidance of 9.4% to 9.8% reflects a "normalization from outsized gross margin benefits" in 2025, indicating potential for future margin compression.
• Management anticipates "broadly flat" overall end markets for calendar year 2026, with the residential sector expected to decline in the low to mid-single digits, which could curb revenue growth.
• Valuation metrics, such as a PEG Ratio of 2.08 and a Price-to-Book ratio of 8.50, suggest the company may be overvalued relative to its growth prospects and assets.
• M&G PLC, a notable institutional investor, significantly reduced its position in Ferguson plc by 48.7% during Q3 2025, selling 96,063 shares according to a recent 13F filing.