The analyst recommends buying Ferguson due to its 'Trifecta' characteristics: strong earnings growth (10% annually, expected to continue as the company focuses on the higher-margin US market after divesting European operations), potential for market multiple expansion (currently trading at 11x EBITDA, projected to sell at 12x in 10 years), and consistent share buybacks (2% annually). He believes the stock is currently undervalued at $127 per share, with a projected value of $208 in 10 years, offering an 11% annual return.
“if you're looking for a 100 time stock if you want something that might last take a look at Ferguson it's kind of an interesting stock and if you hold it for 30 years you can absolutely see something like that 100 return”