Ferguson Enterprises Inc. (NYSE:FERG) is among the finest water infrastructure shares to purchase as AI knowledge facilities pressure sources. On Could 5, 2026, Ferguson reported first-quarter gross sales of $7.5 billion, up 3.6% 12 months over 12 months, whereas U.S. non-residential income rose 8%. Administration mentioned massive capital challenge exercise remained sturdy, with progress in shipments, open orders, and bidding exercise.
The information middle angle is unusually direct for a distributor. Throughout the identical earnings name, CFO Invoice Brundage mentioned knowledge facilities accounted for slightly over half of Ferguson’s massive capital challenge income. He additionally mentioned massive capital tasks confirmed up principally in business mechanical, which grew 21%, and in a part of Waterworks, which grew 14%.
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That is essential as a result of massive AI knowledge middle campuses require coordinated waterworks, mechanical, HVAC, plumbing, PVF, valve, flow-control, wastewater, and fire-protection provide earlier than they will function at scale. Ferguson additionally accomplished two Waterworks acquisitions through the quarter: Know-how Gross sales Associates and Chesapeake Environmental Gear.
Ferguson Enterprises Inc. (NYSE:FERG) is a North American distributor of water, air, plumbing, HVAC, PVF, waterworks, wastewater, and associated infrastructure merchandise.
Whereas we acknowledge the potential of FERG as an funding, we imagine sure AI shares supply larger upside potential and carry much less draw back threat. If you happen to’re in search of a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
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