Ferguson: Managing A Mixed Macro Admirably

Ferguson Enterprises Inc. delivered strong Q3 results, with 9% revenue growth and 7% organic growth despite a flat construction environment. FERG's operating margin held steady at 10.7%, demonstrating effective cost discipline and pricing power amid supplier inflation and gross margin compression. Management raised 2024 revenue guidance to 7% growth and improved the margin outlook, but valuation remains stretched at ~21x forward earnings.