Join our community of smart investors

Ferguson growth is still reasonably priced

Our screen suggests the US focussed plumbing and heating specialist isn't over-priced.
Ferguson growth is still reasonably priced
  • Screen highlights reasonably priced ideas
  • On Aim building and infrastructure material specialists rank well

The Competition and Markets Authority (CMA) ruling against JD Sports (JD) forcing it to sell Footasylum hasn’t pulled the rug from under the business according to our growth at a reasonable price (GARP) screen. Analysts’ forecasts for EPS growth are still positive according to FactSet data, but this is definitely a story worth investigating and not relying on screen numbers alone. We will have a longer analysis piece on the company for Alpha subscribers in the pipeline. 

Another company scoring well is plumbing and heating product distributor Ferguson (FERG), which published encouraging Q1 2022 results this week, although it cautioned that prior year comparatives for the rest of the year are tough, expectations among analysts remain positive. With a price to earnings growth (PEG) ratio below one, this ongoing success story isn’t overpriced according to our screen.

Download PDF