Analyst Expectations For Ferguson Enterprises's Future

Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Ferguson Enterprises FERG in the last three months.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $228.71, a high estimate of $245.00, and a low estimate of $219.00. This upward trend is evident, with the current average reflecting a 2.1% increase from the previous average price target of $224.00.

Investigating Analyst Ratings: An Elaborate Study

The perception of Ferguson Enterprises by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Ferguson Enterprises. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Ferguson Enterprises compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Ferguson Enterprises's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Ferguson Enterprises's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Ferguson Enterprises analyst ratings.

Discovering Ferguson Enterprises: A Closer Look

Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the United States According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its UK business in 2021 and is now solely focused on the North American market.

Ferguson Enterprises: A Financial Overview

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Ferguson Enterprises's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 1.38%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Ferguson Enterprises's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 5.68%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Ferguson Enterprises's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.1%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Ferguson Enterprises's ROA excels beyond industry benchmarks, reaching 2.73%. This signifies efficient management of assets and strong financial health.

Debt Management: Ferguson Enterprises's debt-to-equity ratio is below the industry average. With a ratio of 0.98, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Analyst Ratings: What Are They?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.