Is QXO (QXO) The Best Stock to Benefit from Fed’s Interest Rate Cuts?

We recently published Top 10 Non-AI Stocks Redditors are Buying Ahead of Potential Bubble Burst. QXO Inc (NYSE:QXO) is one of the top non-AI stocks redditors are buying.

QXO Inc (NYSE:QXO) is one of the best non-tech stocks to buy, according to Redditors. The company sells roofing solutions and building products. It’s up about 7% so far this year. KeyBanc Capital Markets recently said in a note that the building products distribution sector in the US could see a rebound amid declining interest rates. The firm gave an Overweight rating to QXO Inc (NYSE:QXO).

QXO can continue to thrive amid construction activity in the coming years because there’s a shortage of 7.2 million homes in the US, while the median housing age is about 40 years, with a growing need for renovation and repair solutions.

Patient Capital Opportunity Equity Strategy stated the following regarding QXO, Inc. (NYSE:QXO) in its second quarter 2025 investor letter:

“QXO, Inc. (NYSE:QXO) was the top contributor to performance during the quarter following the completion of its $11B acquisition of Beacon Roofing in April. This marks the first of what is expected to be a series of acquisitions, as the company pursues a roll-up strategy in the highly fragmented building products distribution industry. QXO is leveraging a proven playbook that its management team has successfully executed across other sectors. With a strong track record and investor confidence, the company benefits from the ability to raise capital on attractive terms, giving it a competitive edge vs peers. Furthermore, management has proven their price discipline walking away from a bidding war for GMS Inc., which was ultimately acquired by Home Depot. We view this disciplined approach as a testament to management’s long-term focus. Over the next decade, QXO is targeting more than $50B in annual revenue. We have high conviction in Brad Jacobs’ leadership and believe the company is well positioned to become a long term compounder.”

While we acknowledge the risk and potential of QXO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QXO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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