Truist Sees Long Runway for QXO (QXO) Amid Housing and Infrastructure Tailwinds

QXO Inc. (NYSE:QXO) is one of the 11 best debt-free stocks to invest in right now. The company presents a compelling long-term investment opportunity as it aims to become the tech-enabled leader in a massive, fragmented industry. With over 7,000 distributors across North America, the $800 billion building products distribution market is primed for consolidation.

QXO plans to build a $50 billion revenue platform over the next decade by acquiring undervalued regional businesses, particularly in roofing, waterproofing, and adjacent categories, and rapidly enhancing their performance.

A construction site with workers wearing hard hats and safety vests, installing roofing materials.

In addition, structural demand drivers, such as a persistent housing shortage, an aging housing base, and multitrillion-dollar infrastructure needs, should act as long-term tailwinds.

Truist analyst Keith Hughes echoed this long-term view in his July 1 initiation of coverage on QXO, with a Buy rating and a $30 price target. According to Hughes, QXO’s acquisition of Beacon Roofing Supply Inc. in April marks a significant first step toward consolidating what remains a highly fragmented industry.

The analyst views this transaction as more than a one-off move. Instead, it reflects the company’s broader ambition to scale rapidly through acquisitions. He noted that QXO has laid out an aggressive roadmap, one that will likely involve consistent deal flow. In Hughes’ view, the company is well-positioned, both structurally and strategically, to execute on this pace of consolidation.

QXO Inc. (NYSE:QXO) is a distributor of roofing, waterproofing, and complementary building products in the United States.

READ NEXT: Harvard University Stock Portfolio: Top 10 Stock Picks and 20 Undervalued Momentum stocks that are Taking Off.

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