10 Best Stocks to Buy According to Seth Klarman

6. Ferguson Enterprises Inc. (NYSE:FERG)

Baupost Group’s Equity Stake: $196.48 Million

Number of Hedge Fund Holders: 72

Ferguson Enterprises Inc. (NYSE:FERG) is an industrial company that distributes plumbing and heating products. It provides expertise, solutions, and products, including infrastructure, plumbing, appliances, fire, and fabrication products to residential and non-residential customers.

It is one of the best stocks to buy as its focus is on the execution and delivery of revenue growth despite continued market headwinds and commodity price deflation. The company boasts a strong balance sheet and cash-generative model that allows it to continue investing in organic growth. The company delivered solid fiscal second quarter 2025 results on March 11, which was characterized by a 3% increase in sales to $6.9 billion. Sales volume in the quarter was also up by 5% as it also logged $1.38 earnings per share.

The company is well-positioned to benefit from structural tailwinds in the US housing market, which is underbuilt and aging amid the growing need for specialized professionals in plumbing and HVAC. Ferguson continues balancing investment in key strategic opportunities while leveraging tailwinds in residential and non-residential markets.