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FERG vs WSO
Which Stock Would AI Choose? Ferguson Enterprises Inc. (FERG) vs. Watsco, Inc. (WSO) Stock Comparison
Key Takeaways
- Ferguson Enterprises Inc. (FERG) has delivered stronger recent momentum, including a notable surge tied to S&P 500 inclusion effective August 5, 2026.
- Watsco, Inc. (WSO) reported mixed quarterly results with an earnings miss in Q2 2026, contributing to relatively subdued performance year-to-date.
- Both companies operate in the industrial distribution sector, with FERG focused on plumbing and heating products and WSO on HVAC and refrigeration equipment.
- FERG shares have outperformed broader market benchmarks in recent market activity, while WSO has shown more modest or flat returns amid earnings pressure.
- Market sentiment has favored FERG due to index inclusion and operational resilience, whereas WSO faces scrutiny over margin and earnings consistency.
- Relative positioning highlights trade-offs in growth drivers, with FERG exhibiting greater short-term stability and catalysts compared to WSO’s steadier but slower recent trajectory.
Introduction
This comparison examines Ferguson Enterprises Inc. (FERG) and Watsco, Inc. (WSO), two leading distributors in the industrial sector. Both stocks appeal to investors seeking exposure to construction, maintenance, and infrastructure-related demand through specialized product distribution. The analysis focuses on recent market activity, business models, and performance factors relevant to traders and portfolio managers evaluating relative value and momentum in the current environment.
FERG Overview and Recent Performance
Ferguson Enterprises Inc. (FERG) distributes plumbing, heating, ventilation, air conditioning, and related products primarily across North America and select international markets. The company serves professional contractors in repair, maintenance, and new construction segments. In recent market activity, FERG shares have shown notable strength, rising more than 15% over the past month amid broader gains of approximately 16% year-to-date. A key development was the company’s addition to the S&P 500 index effective August 5, 2026, which supported positive sentiment and price appreciation. Additional factors include analyst commentary on cash flow improvement and margin expansion potential.
WSO Overview and Recent Performance
Watsco, Inc. (WSO) is the largest distributor of heating, ventilation, air conditioning, and refrigeration equipment, parts, and supplies in North America. The company serves contractors and dealers through an extensive branch network. Recent market activity for WSO has been more measured, with shares trading around recent levels near $330 and posting a modest year-to-date decline of approximately 3.5%. Q2 2026 earnings results included an earnings per share miss relative to consensus estimates, which weighed on sentiment despite ongoing operational scale in the HVAC sector.
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Head-to-Head Comparison
Ferguson Enterprises Inc. (FERG) and Watsco, Inc. (WSO) both function as specialized distributors but differ in product focus: FERG emphasizes plumbing and heating supplies, while WSO concentrates on HVAC and refrigeration. Business models share exposure to construction cycles and contractor demand, yet FERG’s broader geographic reach and recent index inclusion provide distinct momentum advantages. Recent performance contrasts sharply, with FERG demonstrating stronger upward trajectory and stability versus WSO’s earnings-related pressure. Risk factors include cyclical sensitivity for both, though WSO’s narrower earnings consistency may amplify volatility. Market sentiment has tilted toward FERG amid positive catalysts, while WSO trades at comparatively lower valuation multiples in some metrics. Sector exposure remains aligned within industrials, creating trade-offs between growth consistency and established scale.
Tickeron AI Verdict
Based on observable factors such as recent trend consistency, index-related catalysts, and relative positioning, Tickeron’s AI would currently assign a probabilistic preference to Ferguson Enterprises Inc. (FERG) over Watsco, Inc. (WSO). This assessment reflects FERG’s stronger short-term momentum and stability indicators in available market data, though outcomes remain subject to evolving conditions and broader economic variables.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is FERG is a Buy and WSO is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
FERG’s FA Score shows that 2 FA rating(s) are green whileWSO’s FA Score has 1 green FA rating(s).
- FERG’s FA Score: 2 green, 3 red.
- WSO’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
FERG’s TA Score shows that 6 TA indicator(s) are bullish while WSO’s TA Score has 5 bullish TA indicator(s).
- FERG’s TA Score: 6 bullish, 4 bearish.
- WSO’s TA Score: 5 bullish, 5 bearish.
Price Growth
FERG (@Electronics Distributors) experienced а -2.07% price change this week, while WSO (@Electronics Distributors) price change was -2.93% for the same time period.
The average weekly price growth across all stocks in the @Electronics Distributors industry was -0.52%. For the same industry, the average monthly price growth was +8.51%, and the average quarterly price growth was +6.60%.
Reported Earning Dates
FERG is expected to report earnings on Nov 09, 2026.
WSO is expected to report earnings on Oct 15, 2026.
Industries' Descriptions
@Electronics Distributors (-0.52% weekly)Electronics distributors are companies that are involved in distribution of one or more of the following: electronic components, computer products/ peripherals and software products & services. Several electronics distributors are also becoming the point of contact for technical/pre- & post-sale support in many cases, in an attempt to bolster their position in the market. Tariffs and/or cross-border trade barriers are some of the potential threats to the electronics supply chain, but that could also potentially lead to re-directing to markets where tariffs/restrictions are lower depending on demand. The industry is also vulnerable in the event of economic slowdowns. Arrow Electronics, Inc., SYNNEX Corporation and Versum Materials, Inc. are some of the major electronics distributors in the U.S.
| FERG | WSO | FERG / WSO | |
| Capitalization | 48B | 13B | 369% |
| EBITDA | 3.08B | 734M | 419% |
| Gain YTD | 12.746 | -5.235 | -243% |
| P/E Ratio | 24.42 | 26.70 | 91% |
| Revenue | 31.2B | 7.24B | 431% |
| Total Cash | 820M | N/A | - |
| Total Debt | 6.08B | 486M | 1,252% |
FERG | WSO | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 46 | 54 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 43 Fair valued | 10 Undervalued | |
PROFIT vs RISK RATING 1..100 | 30 | 82 | |
SMR RATING 1..100 | 31 | 52 | |
PRICE GROWTH RATING 1..100 | 51 | 81 | |
P/E GROWTH RATING 1..100 | 65 | 70 | |
SEASONALITY SCORE 1..100 | 85 | 39 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
WSO's Valuation (10) in the Building Products industry is somewhat better than the same rating for FERG (43) in the null industry. This means that WSO’s stock grew somewhat faster than FERG’s over the last 12 months.
FERG's Profit vs Risk Rating (30) in the null industry is somewhat better than the same rating for WSO (82) in the Building Products industry. This means that FERG’s stock grew somewhat faster than WSO’s over the last 12 months.
FERG's SMR Rating (31) in the null industry is in the same range as WSO (52) in the Building Products industry. This means that FERG’s stock grew similarly to WSO’s over the last 12 months.
FERG's Price Growth Rating (51) in the null industry is in the same range as WSO (81) in the Building Products industry. This means that FERG’s stock grew similarly to WSO’s over the last 12 months.
FERG's P/E Growth Rating (65) in the null industry is in the same range as WSO (70) in the Building Products industry. This means that FERG’s stock grew similarly to WSO’s over the last 12 months.
| FERG | WSO | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 49% | 2 days ago 68% |
| Stochastic ODDS (%) | 2 days ago 64% | 2 days ago 68% |
| Momentum ODDS (%) | 2 days ago 74% | 2 days ago 63% |
| MACD ODDS (%) | 2 days ago 69% | N/A |
| TrendWeek ODDS (%) | 2 days ago 55% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 66% | 2 days ago 59% |
| Advances ODDS (%) | 11 days ago 68% | 11 days ago 71% |
| Declines ODDS (%) | 3 days ago 57% | 3 days ago 69% |
| BollingerBands ODDS (%) | 2 days ago 57% | 2 days ago 76% |
| Aroon ODDS (%) | 2 days ago 59% | 2 days ago 51% |
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FERG and
Correlation & Price change
A.I.dvisor indicates that over the last year, FERG has been loosely correlated with WSO. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if FERG jumps, then WSO could also see price increases.
| Ticker / NAME | Correlation To FERG | 1D Price Change % | ||
|---|---|---|---|---|
| FERG | 100% | +1.20% | ||
| WSO - FERG | 56% Loosely correlated | +0.71% | ||
| AIT - FERG | 56% Loosely correlated | +1.51% | ||
| WCC - FERG | 53% Loosely correlated | -1.42% | ||
| CNM - FERG | 49% Loosely correlated | +0.17% | ||
| BXC - FERG | 49% Loosely correlated | +0.46% | ||
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WSO and
Correlation & Price change
A.I.dvisor indicates that over the last year, WSO has been loosely correlated with FERG. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if WSO jumps, then FERG could also see price increases.
| Ticker / NAME | Correlation To WSO | 1D Price Change % | ||
|---|---|---|---|---|
| WSO | 100% | +0.71% | ||
| FERG - WSO | 56% Loosely correlated | +1.20% | ||
| AIT - WSO | 56% Loosely correlated | +1.51% | ||
| SITE - WSO | 54% Loosely correlated | +1.20% | ||
| QXO - WSO | 49% Loosely correlated | -0.93% | ||
| MSM - WSO | 46% Loosely correlated | +1.55% | ||
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