QXO, Inc. (QXO): A Bull Case Theory

We came crossed a bullish thesis connected QXO, Inc. connected Mispriced Assets’s Substack by Nick Nemeth. In this article, we volition summarize the bulls’ thesis connected QXO. QXO, Inc.'s stock was trading astatine $18.73 arsenic of November 28th. QXO’s trailing and guardant P/E were 2.11 and 40.65 respectively, according to Yahoo Finance.

QXO, Inc. distributes roofing, waterproofing, and different gathering products successful the United States. The writer has initiated a starter presumption successful QXO, chiefly arsenic a absorption stake connected Brad Jacobs, a serial entrepreneur renowned for creating multibillion-dollar companies done acquisitions and operational excellence. Jacobs has repeatedly demonstrated an quality to consolidate fragmented industries, including United Waste Systems, United Rentals, and XPO Logistics, generating bonzer returns for shareholders and gathering lasting marketplace leaders.

QXO is his latest venture, a nationalist holding institution formed via a reverse merger with SilverSun Technologies successful 2024, aimed at consolidating the highly fragmented $800 cardinal U.S. gathering products organisation sector. The institution present stands arsenic the largest publically traded distributor of roofing, waterproofing, and related materials, with an ambitious extremity of reaching $50 cardinal successful yearly gross implicit the adjacent decade.

QXO’s strategy is classical Jacobs: acquire, scale, and integrate. The archetypal transformative woody was the $11 cardinal acquisition of Beacon Roofing Supply successful April 2025, instantly providing coast-to-coast beingness and a important gross base. Jacobs has shown subject successful avoiding overbidding, walking distant from GMS erstwhile Home Depot outbid them, and targeting strategical opportunities similar Rexel selectively.

Integration is cardinal to QXO’s upside; the institution has streamlined operations, modernized technology, introduced AI-driven inventory and pricing systems, and is improving profitability in acquired businesses. Early initiatives, specified arsenic the centralized pricing platform, person already recovered important borderline leakage and improved banal availability, demonstrating the operational playbook successful action.

Despite an initial hype-driven spike successful 2024, QXO’s existent $21 banal terms offers vulnerability alongside Jacobs adjacent his introduction valuation. The concern focuses connected the resilient repair and remodel segment, with the U.S. arsenic its superior market, mitigating execution risk. While inactive aboriginal successful its journey, QXO presents substantial upside if Jacobs replicates his anterior successes, combining scale, technology, and disciplined acquisitions to alteration a fragmented assemblage into a nationalist powerhouse. This is simply a calculated, semipermanent play connected exceptional absorption and structural manufacture opportunity.