10 Best Industrial Distribution Stocks to Invest In According to Hedge Funds

8. Custom Truck One Source Inc. (NYSE:CTOS)

Custom Truck One Source Inc. (NYSE:CTOS) is one of the 10 best industrial distribution stocks to invest in according to hedge funds.

On May 27, Custom Truck One Source Inc. (NYSE:CTOS) announced that it has secured a cooperative purchasing contract through Sourcewell. Speaking about this development, Ryan McMonagle, CEO of Custom Truck, stated that selection by Sourcewell was an important achievement, and this would go a long way in reiterating the faith of its customers in the company.

He stated that through a streamlined cooperative purchasing process supported by its nationwide capabilities, the company hopes to expand its partnerships with local, state, and federal agencies throughout North America.

Earlier on May 26, Cantor Fitzgerald increased its price target on Custom Truck One Source Inc. (NYSE:CTOS) from $11 to $13, which now yields a revised upside of almost 24%. The firm also maintained an Overweight rating on the stock.

Cantor noted that meetings with investors have left a strong impression of the company’s progress as it embarks on the execution phase. The firm expects normalization in capex, which will allow the company to create stable free cash flows and continue deleveraging. Strong utility transmission demand, better segment visibility, and rising rental metrics all contribute to this positive outlook.

Custom Truck One Source Inc. (NYSE:CTOS) performs specialty equipment rental and sale services in the U.S. and Canada. The company sells new and used equipment, including insulated hot sticks, rigging equipment, service trucks, dump trucks, trailers, and digger derricks. The company also provides maintenance and repair services.