Should You Consider Adding Ferguson (FERG) to Your Portfolio?

ClearBridge Investments, an investment management firm, released its third-quarter 2023 “Mid Cap Growth Strategy” investor letter, a copy of which can be downloaded here. The strategy underperformed its benchmark Russell Midcap Growth Index in the quarter. Overall, the effects of stock selection impacted the performance on a relative basis. The strategy gained three of the 11 sectors it was invested during the quarter on an absolute basis. In addition, please check the fund’s top five holdings to know its best picks in 2023.

ClearBridge Mid Cap Growth Strategy highlighted stocks like Ferguson plc (NYSE:FERG) in the third quarter 2023 investor letter. Headquartered in Wokingham, the United Kingdom, Ferguson plc (NYSE:FERG) is a plumbing and heating products distributing company. On December 12, 2023, Ferguson plc (NYSE:FERG) stock closed at $182.95 per share. One-month return of Ferguson plc (NYSE:FERG) was 11.72%, and its shares gained 39.05% of their value over the last 52 weeks. Ferguson plc (NYSE:FERG) has a market capitalization of $37.227 billion.

ClearBridge Mid Cap Growth Strategy made the following comment about Ferguson plc (NYSE:FERG) in its Q3 2023 investor letter:

“We initiated a new position in Ferguson plc (NYSE:FERG), in the industrials sector, a leading distributor of plumbing, pipes-values-fittings, appliances, janitorial supplies and other products to plumbing and mechanical contractors. The company is an established market leader, commanding nine percent of the market in a highly fragmented industry. Ferguson has the opportunity to grow faster than the industry average through scale and technology advantages as well as accretive acquisitions. With the company having divested its European operations to focus on the North American market, we believe it is poised for significant valuation improvement.”

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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, 46 hedge fund portfolios held Ferguson plc (NYSE:FERG) at the end of third quarter which was 51 in the previous quarter.

We discussed Ferguson plc (NYSE:FERG) in another article and shared billionaire Dan Loeb’s top stock picks. In addition, please check out our hedge fund investor letters Q3 2023 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.