Group 1 - Ferguson Enterprises Inc. (FERG) is a leading distributor of building products, serving both residential and non-residential markets with a wide array of plumbing, HVAC, waterworks, and construction supplies [2] - The company achieved organic growth of 1% in its Residential segment in 2025, outperforming a 3% sector decline, and 6% growth in Non-Residential versus flat sector growth, outperforming peers by approximately 500 basis points [3] - FERG maintains gross margins around 30%, operating margins of 9–10% (adjusted 11.4% in Q4), and an ROIC of 30% in 2023–2024, reflecting efficient operations and strong capital allocation [4] Group 2 - FERG is positioned to benefit from reshoring, data center growth, and ongoing market share gains, with mid-single-digit revenue growth and mid- to high-single-digit free cash flow growth expected over the next five years [5] - Potential upside catalysts include inclusion in the S&P 500, which could re-rate the stock, while the company's scale, expertise, and consistent profitability provide a resilient investment profile [5] - The company’s competitive moat is anchored in distribution volume, broad product offerings, and specialized knowledge in water-related and dual-trade projects, effectively targeting professional customers [4]