Do You Think Ferguson plc (FERG) can Deliver Attractive Results in the Future?

Merion Road Capital, an investment advisor, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, Merion Road Small Cap Fund returned -11.5% compared to 2.1% return for the Russell 2000 Index, and its Long Only Large Cap returned -6.4% compared to -4.9% return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Merion Road Capital discussed stocks like Ferguson plc (NYSE:FERG) in its Q3 2022 investor letter. Headquartered in Wokingham, the United Kingdom, Ferguson plc (NYSE:FERG) is a plumbing and heating products distributor. On October 13, 2022, Ferguson plc (NYSE:FERG) stock closed at $108.07 per share. One-month return of Ferguson plc (NYSE:FERG) was -3.45% and its shares lost 25.87% of their value over the last 52 weeks. Ferguson plc (NYSE:FERG) has a market capitalization of $22.524 billion.

Here is what Merion Road Capital specifically said about Ferguson plc (NYSE:FERG) in its Q3 2022 investor letter:

“Or take Ferguson plc (NYSE:FERG) which continues to languish at its lows. Earnings over the next twelve months will likely be lower than the past twelve months. But investing in a moat-y business in a fragmented industry with a strong balance sheet/free cash flow profile should work well over the course of a cycle.”

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Ferguson plc (NYSE:FERG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held Ferguson plc (NYSE:FERG) at the end of the second quarter which was 18 in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.