Ferguson Enterprises NYSE:FERG, the largest U.S. distributor of plumbing and heating, ventilation and air-conditioning supplies, jumped approximately 8% in Monday's regular-session trading as of 12:15 p.m. ET after being selected for inclusion in the S&P 500. Ferguson will replace Electronic Arts, a video-game publisher being acquired, in the benchmark index. The shares reached approximately $253 after trading as high as $256.89.
Approximately $20 trillion of investment capital is indexed to or benchmarked against the S&P 500, according to Barron's. Ferguson's inclusion may therefore create demand from passive funds that replicate the index and active managers that measure performance against it. The company, previously based in the United Kingdom, moved its primary stock listing to the United States in 2024. Ferguson produces more than $30 billion in annual sales and holds a leading position across U.S. plumbing and HVAC distribution.
Ferguson has maintained earnings growth despite weakness across parts of the housing market, while commercial construction connected with AI data centers has supported demand. Analysts expect earnings per share to increase from approximately $10 in 2023 to nearly $13 by 2027, according to Barron's. The projected increase represents roughly 30% over four years, although forecasts remain subject to construction and housing conditions. Investors may now assess whether index-driven purchases produce lasting ownership changes and whether commercial demand can offset subdued residential activity.