GOOOOOOOAL! Ferguson Enterprises Scores a Comeback, Leaving Bears in the Dust!

From the Pitch to Plumbing? Why I'm Talking Stocks

Hola everyone! Leo Messi here. You know me the guy who kicks a ball around for a living. But even I know you can't just live on goals and glory. Sometimes you gotta think about… plumbing. Yeah I know it sounds about as exciting as a 0 0 draw. But trust me this Ferguson Enterprises (FERG) story is more thrilling than a last minute winner against Real Madrid! My friend Josh Brown at CNBC has been talking about FERG and well if it's good enough for Josh it's worth a look right? After all even I need a good plumber sometimes especially when the kids are having a splash in the jacuzzi after I get back from a long day from practice. Who knew plumbing supplies could be so interesting? Maybe I'll even get Antonela into it… maybe not! She already thinks I spend too much time on the phone!

Earning Reports: A Red Card or a Golden Boot?

So what's the deal with FERG? Apparently they had a bit of a stumble back in December 2024. Their earnings report wasn't exactly Champions League material. Operating margins dropped EBITDA went down and the stock price took a bigger dive than Neymar in the penalty box (sorry Neymar couldn't resist!). The market basically gave them a red card. Ouch! The stock went below the 200 day moving average; that's like missing an open goal! But here's the thing about football – and apparently the stock market – you always get a second chance. FERG has spent the last six months training hard getting back in shape and now they're ready to make a comeback!

Momentum is Key: Like Passing to Xavi and Iniesta

Now Josh says something about 'momentum.' In football momentum is everything. It's like when I pass to Xavi and Iniesta; the ball just flows! Apparently it's the same with stocks. Stocks that go up tend to keep going up. Stocks that go down well... you get the idea. FERG was going down but something changed. Their last earnings report in June was like scoring a hat trick in El Clasico! They beat Wall Street's expectations EBITDA grew 20% and even their margins improved. It was like a perfectly executed tiki taka play! They even cut costs saving a cool $100 million. That's like finding money in your sock after laundry day!

Goals Growth and Buybacks: The FERG Trifecta

The good news doesn't stop there! Management expects sales to keep growing and they're stabilizing operating margins. Plus they bought back $759 million worth of shares in 2025 with another $1.1 billion authorized. That's like signing a superstar striker and a world class midfielder in the same transfer window! FERG has really turned things around. They've got a cleaner cost structure stronger margins and a renewed sense of purpose. They're basically the Barcelona of plumbing supplies – minus the drama hopefully!

The Cup and Handle: Not Just for Mate!

Now this is where it gets a bit technical and I might need some help from my financial advisor. Apparently FERG is forming a 'cup and handle' pattern. No it's not what I drink my mate out of! Josh says it signals potential for bullish momentum. The stock has been consolidating between $220 and $225 which is like a crowded penalty box. A breakout above that level especially with strong volume would be a big deal. It's like me finally scoring against Petr Cech after all those years! (Okay I eventually did but you get my point!).

Risk Management: My Defense is Better

Of course investing always comes with risk. It's like playing against a team full of angry defenders. Josh suggests a 'trailing stop' at $200. If the stock drops below that it might be time to reconsider. That level acts as a line of support like a well organized defense. Staying above it keeps the bullish setup intact. But if it breaks it could signal a change in trend and you don't want to be caught offside. So there you have it! Ferguson Enterprises – a plumbing supply company that's making a comeback. Who knew I'd be talking about pipes and fittings? But hey even the GOAT has to diversify right? Now if you'll excuse me I have a training session. And maybe I'll call a plumber later just in case!