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Ferguson Enterprises (FERG) Initiated at Goldman Sachs with ‘Buy’ Rating and $280 Price Target

Ferguson Enterprises Inc. (NYSE:FERG) is one of the 11 best industrial stocks to buy right now. On June 18, Goldman Sachs initiated coverage of the stock with a ‘Buy’ rating and a $280 price target. The investment bank’s bullish stance is in response to improving pricing trends and execution at the company.

A busy warehouse stocked with a variety of industrial plumbing parts.

In its third quarter of fiscal 2025, Ferguson Enterprise delivered a 5% organic growth as pricing turned flat after six consecutive quarters of deflation. Improving price trend and execution triggered a 50 basis point year-over-year improvement in third quarter gross margin.

Goldman Sachs expects the company’s EBITA margin to come at the top end of the new guidance of 8.5% to 9%. The improvement should be driven by improved commodity pricing and finished good pricing. Additionally, the investment bank expects Ferguson Enterprise to benefit from the inflationary impact of US tariffs.

Ferguson Enterprises Inc. (NYSE:FERG) is an industrial company that distributes plumbing and heating products. It also provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication, to residential and non-residential customers.

While we acknowledge the potential of FERG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Most Undervalued Financial Stocks to Buy According to Analysts and 10 Best 52-Week High Stocks to Buy According to Analysts.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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