Plumbing supplies are materials used to build, maintain and repair plumbing systems. They are used in quite literally every residential and commercial building, putting them in constant demand. Want to get a piece of the pie? Let’s look into the best plumbing stocks to buy now.
Best Plumbing Supply Stocks
Ferguson PLC (NYSE: FERG)
Ferguson PLC is a leading multinational distributor of industrial products.
Founded in 1887, the company supplies various products, including fire and fabrication products, building materials, and plumbing and heating products.
The company’s subsidiary corporation, Ferguson Enterprises, is the largest distributor of plumbing supplies and waterworks products in the United States.
With over 1,500 locations across the United States and Canada, it is one of the major players in the plumbing supply industry.
This subsidiary offers various products, including plumbing fixtures, pipes, pumps, and other waterworks appliances.
In 2019, Ferguson enterprises accounted for more than 90% of its parent company’s trading profit.
With a market cap exceeding $27 billion, Ferguson PLC has displayed consecutive growth over time.
Through the years, the company recorded a revenue increase of 16.35%, with a net sales increase of 25.3% in 2022 alone.
While the company’s stock was previously listed in the United Kingdom, it now trades on the New York exchange, bridging the gap between it and US investors.
As of March 2023, the company was trading at $134 per share.
Ferguson is a dividend stock offering investors significant rewards for their stock investment.
It records an annual dividend payout of $3.50 with a yearly yield of 2.61%.
The Home Depot Inc (NYSE: HD)
Home Depot is a multinational retail corporation that offers its customers a range of tools, products, and services.
Founded in 1978 in Marietta, Georgia, the company has become one of the largest retailers of home improvement appliances in the United States today.
With a market cap of approximately $292 billion, this giant corporation is one of the top players in the industry.
While it is famously known for its “Home Depot” retail stores, the company also controls subsidiary companies.
One of these subsidiary corporations includes “HD Supply Holdings,” which provides its customers with many industrial products and infrastructure.
These products include plumbing, electrical and lighting, and building materials.
HD Supply Holdings was reacquired by Home Depot in 2020 for approximately $8 billion.
Before this, the company operated as a publicly traded company and was individually listed under the stock exchange.
Despite this change, potential investors may still acquire shares from its parent company, The Home Depot Inc.
Its shares currently trade at roughly $285 as of March.
The company also offers shareholders a chance to earn dividends, with an annual dividend rate of $8.36 and a dividend yield of 2.92%.
W.W. Grainger (NYSE: GWW)
W.W. Grainger, also known as “Grainger,” is a supplier and distributor of products and services to businesses in various industries.
Founded in 1927 in Chicago, the company offers products in various categories, including plumbing, electrical, HVAC, and many others.
The company operates through nearly 600 branches worldwide, serving over three million customers worldwide.
Its influence has expanded across multiple industries, making them a giant in the plumbing supply industry.
The company also offers customers inventory management services and technical support, helping them manage and optimize their operations.
Unsurprisingly, the company is highly valued, with a market cap estimated at $33 billion and annual revenue exceeding $15 billion as of 2022.
This brings the company’s year-to-year revenue growth to more than 16.94%.
The company offers dividends to shareholders, with a dividend payout of $6.88 and an annual yield of 1.02%.
While Grainger stocks make for a stable investment, the company’s shares are at an all-time high, trading at nearly $690.
Fastenal Company (NASDAQ: FAST)
Fastenal is an industrial distributor company of industrial and construction supplies. Founded in 1967, the company currently hosts over 3,000 stores worldwide.
The company is popularly known for its fastener products but also offers a wide range of products — one of which includes plumbing supplies.
The company is highly valued, with a market cap estimated at $29 billion and annual sales shy of $7 billion as of 2022.
While Fastenal isn’t a pure play company in the plumbing industry, it continues to display potential growth, earning it its spot on this list.
The company reported a 16.13% growth in revenue in the last year and is estimated to earn up to $2 billion in revenue in the coming fiscal year.
The company also offers shareholders benefits on stock, with an annual dividend payout of $1.40 and a dividend yield of 2.71%.
FAST currently trades at roughly $52 as of March 2023.
Northwest Pipe Company (NASDAQ: NWPX)
Northwest Pipe Company is a US-based manufacturer and supplier of steel pipes that cater to waterworks and water transmission applications.
Founded in 1966 and established in Oregon, the company provides a wide range of products and services that cater to pipeline design and engineering.
With a market cap valued at approximately $372 million, the company continues to display potential, reporting consecutive growth of more than 51% annually.
In 2022, the company saw an increase in net sales, reaching 101% in its 3rd quarter when compared to the same quarter in the previous year.
Thanks to significant rises in the company’s revenue, NWPX continues to show potential, earning it its spot on this list.
Masco Corporation (NYSE: MAS)
Masco Corporation is a global manufacturer and distributor of building and home improvement products.
The conglomerate was founded in 1929 and operates through several subsidiary companies.
These subsidiaries expand its influence into various industries, such as the paint and lighting sectors.
One of these subsidiary companies is Delta Faucet Company, a leading manufacturer of various plumbing fixtures such as showerheads, faucets, and many other plumbing products.
Through Delta Faucet, the company supplies plumbing materials and systems for commercial and residential use.
The company’s market cap exceeds $11 billion and reports over $8 million in total revenue in 2022.
However, while the company continues to maintain stability, it shows little to no growth in revenue.
In the last fiscal year, Masco’s corporation only accrued a 3.64% increase in total revenue compared to 2019.
The company still has its perks, offering shareholders a chance to earn dividends on shares with a dividend yield of 2.27%.
As of March 2023, its shares are trading at roughly $50, with an annual dividend payout of $1.14.
Mueller Industries (NYSE: MLI)
Mueller Industries is a multi-billion dollar manufacturing company based in the United States.
The company was founded in 1917 and specializes in producing and selling aluminum, copper, and plastic products.
While the company isn’t solely invested in the plumbing industry, its products offer a variety of uses and provide essential materials to the plumbing and heating sector.
The company’s market cap is estimated to exceed $4 billion.
However, Muller Industries remains at the bottom of the list due to its future estimated earnings.
In the last fiscal year, the company reported little to no growth in total revenue as it barely accrued a 2% increase.
The company’s estimated earnings in the coming fiscal quarter are expected to drop by nearly 17%.
The company’s stock is still relatively accessible, trading at roughly $72 as of March 2023.
Despite its cheap valuations, MLI still constitutes a potentially risky buy.
However, Mueller still shows potential thanks to its dividend growth.
MLI’s dividend growth rate rose by nearly 80% in 2022. This might appeal to shareholders, who stand to benefit from this reward.
The company has an annual dividend rate of $1.20 and a dividend yield of 1.68%
Are Plumbing Supply Stocks a Good Investment?
In recent years, there has been an increased demand for plumbing supplies because of many factors, like aging infrastructure and growing urbanization.
We’re also entering a new age of construction as the housing market booms. New homes, like any other, require plumbing.
This has led to robust growth for the plumbing supply industry, making investing in plumbing supply stocks increasingly lucrative.
Plumbing supplies such as valves, water heaters, and pipes are used to build, maintain, and repair many essential infrastructure projects, so demand is unlikely to fall anytime soon.
Plus, the world needs plumbing whether the economy’s booming or we’re in a recession. The industry can rely on a constant stream of revenue in any condition.
Additionally, plumbing supplies are used in various industries, from residential and commercial real estate to health care and hospitality.
As a result, plumbing supply stocks are often relatively stable investments.
Additionally, given their use in various industries, plumbing supply stocks tend to be less susceptible to sectoral shifts.
Moreover, many plumbing stocks pay out regular dividends. This steady income can offset any slow points and provides funds to reinvest.
There’s also been an increase in government regulations surrounding proper plumbing installation. As standards become more stringent, the need for plumbing services and the stocks they represent grow.
Overall, investing in plumbing companies is a great way to capitalize on stable growth in the plumbing supply industry.
FAQs
What Is The Biggest Plumbing Company In The World?
The biggest plumbing company in the world is currently believed to be Lowe’s Companies (LOWE).
Who Is The Father Of Plumbing?
Julius Ballanco is widely regarded to be the father of modern-day plumbing.
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