Ferguson Enterprises Inc. (NYSE:FERG) is one of the 10 best trading and distribution stocks to buy.

On February 25, Truist increased the firm’s price target on Ferguson Enterprises Inc. (NYSE:FERG) from $260 to $300. The firm maintained its Buy rating on the shares, which offer an adjusted upside of more than 30% at the prevailing level. The firm noted that the company continues to deliver revenue growth, driven by strength in its non-residential businesses along with some contribution from inflation.

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Truist added that demand from data center projects and other large-scale work has helped Ferguson’s growth stand out over the past year, though comparisons are now becoming more challenging. That said, the firm believes Ferguson’s ability to generate growth in tougher markets remains notable, supported by its combination of steady revenue gains and relatively low volatility.

On February 25, Scott Schneeberger from Oppenheimer increased the firm’s price target on Ferguson Enterprises Inc. (NYSE:FERG) to $280 from $255. The analyst maintained his Outperform rating on the stock, which yields a revised upside of more than 21%.

This adjustment follows the company’s fourth-quarter results, which exceeded expectations across all metrics. Schneeberger also reflected favorably upon the company’s earnings call, where management detailed strategic market opportunities and introduced a medium-term outlook.

Ferguson Enterprises Inc. (NYSE:FERG) is a distributor of specialized water and air solutions across North America. Serving both residential and commercial sectors, they provide critical products ranging from HVAC and plumbing to industrial pipe, valves, and fittings. Beyond hardware, they offer high-touch services like virtual design, fabrication, and project management to support complex infrastructure and industrial needs.

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.

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