12 Best Under-the-Radar Stocks to Buy According to Hedge Funds

2. QXO, Inc. (NYSE:QXO)

QXO, Inc. (NYSE:QXO) is one of the best under-the-radar stocks to buy according to hedge funds. On February 20, Benchmark reiterated its Buy rating on QXO, Inc. (NYSE:QXO) with a price target of $50. This update comes after the company agreed to acquire Kodiak Building Partners.

Benchmark analyst Reuben Garner met with the company’s CEO, Brad Jacobs, at the Builders’ Show, along with several other public and private industry participants. Benchmark expects this transaction to be accretive to earnings. However, it decided to update its model for QXO, Inc. (NYSE:QXO) after the transaction is completed. The deal is expected to close early in the second quarter of 2026. According to Benchmark, QXO, Inc. (NYSE:QXO) has up to $6 billion or more in capital available to deploy.

Earlier, on February 11, Reuters reported that QXO, Inc. (NYSE:QXO) has agreed to acquire smaller private distributor Kodiak Building Partners for around $2.25  billion. This is the company’s second acquisition and comes after the company acquired Beacon Roofing Supply for $11 billion last year. The report by Reuters mentions that Kodiak Building Partners generates about $2.4 billion in annual revenue, operates 110 locations across 26 states, and has around 5,500 employees.

QXO, Inc. (NYSE:QXO) is a major distributor of roofing, waterproofing, and complementary building products in North America.