Why QXO, Inc. (QXO) Is One of the Best Strong Buy Stocks to Invest in Right Now

QXO, Inc. (NYSE:QXO) is one of the best strong buy stocks to invest in right now. William Blair cut its estimates for QXO, Inc. (NYSE:QXO) on December 31 after a soft roofing survey and reaffirmed an Overweight rating on the shares. The firm brought its fiscal Q4 EBITDA estimate down to $152 million compared to the Street’s $203 million, and also lowered its fiscal Q1 EBITDA estimate to $130 million compared to $167 million by the Street.

However, William Blair stated that it views QXO, Inc. (NYSE:QXO) investors to be increasingly focused on the next transformational M&A deal, believing that a sizeable deal would boost investor confidence and thus encourages investors to “use bumps along the road to add to positions.”

In another development, Truist cut the price target on QXO, Inc. (NYSE:QXO) to $26 from $28 on December 19 and maintained a Buy rating on the stock. The firm told investors that it adjusted its model to take into account several factors, such as the rising price pressure in some regions, lack of storms, and weakness in the R&R market. However, it added that its 2026 estimates remain unchanged and are heavily driven by M&A, as it believes the company will close another deal in the near future. Truist also stated that the departure of the company’s CEO expedites a large deal.

QXO, Inc. (NYSE:QXO) distributes roofing, waterproofing, and complementary building products in the United States. The company has plans to become a tech-enabled player in the building products distribution industry.

While we acknowledge the potential of QXO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.