2 'Perfect 10' Stocks Wall Street's Biggest Banks Are Betting On

Tip Ranks
2025.10.14 10:07
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Wall Street analysts have identified two 'Perfect 10' stocks, including QXO Inc., a building materials distributor. QXO's recent acquisition of Beacon Roofing Supply propelled its net sales from $14.5 million to $1.91 billion in just one year. Morgan Stanley's analyst, Christopher Snyder, projects a 40% CAGR for QXO, with a price target of $35, indicating a potential 89% gain. The stock has a Strong Buy consensus rating based on 12 reviews, with an average target price of $30.65, suggesting a 66% upside from its current price of $18.50.

Making sense of that ocean of information takes time and expertise, which is why professional analysts dedicate their careers to it, often narrowing their focus to specific industries or market segments. For everyone else, diving that deep into the numbers is rarely practical.

That's where AI and TipRanks' Smart Score step in. The Smart Score is an algorithm that applies artificial intelligence and natural language processing to evaluate every publicly traded stock. It analyzes a wide range of factors statistically linked to future outperformance and distills them into a simple 1-to-10 score.

Stocks that achieve a 'Perfect 10' stand out as particularly compelling – and when top Wall Street banks share that conviction, it's a combination worth noticing.

We turned to the TipRanks database to find such names and identified two 'Perfect 10' stocks that also enjoy strong endorsements from major banks. Here's a closer look.

QXO Inc. (QXO)

Up first on our list of 'Perfect 10' stocks is QXO, a distribution company working in the building materials sector. QXO offers lines of roofing, siding, waterproofing, and other related building and construction products in the North American market. The company has over 600 locations, and a fleet of over 3,000 trucks to facilitate product deliveries.

Getting into specifics, QXO's products are divided into three segments: exterior materials, interior materials, and tools & supplies. On the first, the company offers such items as decks & railings, lumber & composites, windows, sidings, accessory fittings – to name just a few. Interior materials include such vitals as drywall and insulation, while tools and equipment include everything from nails and fasteners to hand tools and air-powered tools to personal safety gear such as hard hats.

However, QXO only recently became a building products distributor. In 2Q25, QXO finalized its acquisition of Beacon Roofing Supply, significantly expanding its presence in the building products distribution market, including roofing and related construction materials. Before the deal that transformed the company, QXO was a much smaller software and technology firm focused on digital platforms and tech-driven solutions.

The acquisition led to huge growth in the firm's last set of financial results, with net sales rising from just $14.5 million in 2Q24 to $1.91 billion in 2Q25, and beating the forecast by $32.7 million. At the bottom line, the company's 11-cent non-GAAP EPS was 7 cents better than the forecast.

This stock has caught the attention of Morgan Stanley, one of the banking industry's biggest names. MS analyst Christopher Snyder is impressed by the company's growth and the opportunity offered in the building sector by lower interest rates, writing, "QXO is expected to compound EBITDA at a ~40% CAGR through decade — roughly 5x the peer group, yet shares trade at a discount… While the QXO value creation opportunity is not cycle dependent, it always helpful. After US construction stagnated in 2023-25 on higher rates, we are beginning to see signs of cycle momentum and potential NTM rate cuts would further aid the recovery into 2026. QXO also screens to benefit from Trump policy by shifting more investment into the US (ie structures that need roof) while Tariffs also bring higher industry price which would translate to higher profits for QXO as the company looks to expand its GM into 2026 and the higher price environment."

These comments are accompanied by an Overweight (i.e., Buy) rating, as well as a $35 price target that suggests a robust one-year gain for the stock of 89%. (To watch Snyder's track record, click here)

QXO's Strong Buy consensus rating is based on 12 recent analyst reviews that feature a lopsided split of 11-to-1 in favor of Buy over Hold. The shares are trading for $18.50, and their $30.65 average target price implies an upside of 66% in the year ahead. (See QXO stock analysis)