Do You Think Ferguson Enterprises' (FERG) Growth Will Return to Its Historical Cadence?

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund (Class Y) increased 3.1%, compared to a 10.9% gain for the S&P 500 index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as Ferguson Enterprises Inc. (NYSE:FERG). Ferguson Enterprises Inc. (NYSE:FERG) is a plumbing and heating products distributor. The one-month return of Ferguson Enterprises Inc. (NYSE:FERG) was 0.38%, and its shares gained 3.67% of their value over the last 52 weeks. On July 21, 2025, Ferguson Enterprises Inc. (NYSE:FERG) stock closed at $219.98 per share, with a market capitalization of $44.147 billion.

Madison Large Cap Fund stated the following regarding Ferguson Enterprises Inc. (NYSE:FERG) in its second quarter 2025 investor letter:

"The top five contributors for the quarter were Ferguson Enterprises Inc. (NYSE:FERG), Berkshire Hathaway, Analog Devices, Texas Instruments, and Brookfield Corporation. Ferguson, a distributor of plumbing and HVAC products, reported improvements in both sales and profits during the quarter. These results were helped by the easing of deflationary pricing in a handful of product lines that have negatively impacted the company’s growth over the last 18 months. As the pricing environment continues to improve and volumes remain steady, we believe Ferguson’s growth will return to its historical cadence."

Ferguson Enterprises Inc. (NYSE:FERG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Ferguson Enterprises Inc. (NYSE:FERG) at the end of the first quarter, which was 72 in the previous quarter. In the fiscal third quarter of 2025, Ferguson Enterprises Inc. (NYSE:FERG) reported $7.6 billion in sales, an increase of 4.3% over prior year. While we acknowledge the potential of Ferguson Enterprises Inc. (NYSE: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.

In another article, we covered Ferguson Enterprises Inc. (NYSE:FERG) and shared the list of best industrial stocks to buy. Madison Large Cap Fund added Ferguson Enterprises Inc. (NYSE:FERG) to its portfolio in Q1 2025. In addition, please check out our hedge fund investor letters Q2 2025 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.