Barclays Stays Selective in Building Products as Ferguson (FERG) Heads Into Q4

Ferguson Enterprises Inc. (NYSE:FERG) is included among the 12 Best HVAC Stocks to Buy Now.

Photo by nathan dumlao connected Unsplash

On January 15, Barclays expert Matthew Bouley raised his terms people connected Ferguson Enterprises Inc. (NYSE:FERG)  to $278 from $267 and reiterated an Overweight standing connected the stock. The update came arsenic Barclays refreshed its targets crossed the homebuilding and gathering products abstraction up of fourth-quarter earnings.

In his enactment to investors, Bouley said builders proceed to look borderline unit arsenic request remains “choppy” and inventory levels enactment elevated. He besides pointed to authorities argumentation arsenic a mixed factor, “driving imaginable negatives and positives together,” which adds different furniture of uncertainty for the sector. Against that backdrop, Barclays said it is staying selective wrong gathering products arsenic companies caput into Q4 reporting.

During the company’s third-quarter 2025 net call, CEO Kevin Murphy said Ferguson continued to execute its maturation strategy good contempt a hard marketplace backdrop. He reported income of $8.2 billion, representing a 5% summation from the anterior year. According to Murphy, integrated maturation accounted for 4% of that increase, portion acquisitions contributed different 1%. He besides pointed to gross borderline enlargement to 30.7%.

Murphy said operating nett roseate 14% twelvemonth implicit twelvemonth to $808 million, portion diluted net per stock accrued astir 16% to $2.84. He highlighted caller superior allocation actions, noting,

“We declared a 7% summation to our quarterly dividend to $0.89 per share, and we acquired Moore Supply Company, HVAC instrumentality and supplies concern successful the Chicago metro area.”

Turning to extremity markets, Murphy said residential conditions stay nether pressure, with residential gross down 1%. In contrast, nonresidential gross grew 12%. He noted that U.S. Waterworks gross accrued 14%, portion HVAC gross declined 6%, which helium attributed to manufacture transitions and continued weakness successful residential construction.

Ferguson Enterprises Inc. (NYSE:FERG) operates arsenic a value-added distributor, supplying specialized products and services to nonrecreational customers crossed some residential and non-residential operation markets successful North America.

While we admit the imaginable of FERG arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.