Does QXO (QXO) Have the Potential for Expansion?

ClearBridge Investments, an investment management company, released its “ClearBridge Mid Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In an environment of shifting monetary policy, stabilizing earnings, and improved sentiment, midcaps experienced growth in the third quarter. The Federal Reserve’s decision to cut rates helped small and mid-cap stocks in the quarter. Value stocks outperformed their growth counterparts with the Russell Midcap Value Index returning 6.2% compared to the Russell Midcap Growth’s 2.8% return. In this environment, the strategy outperformed its Russell Midcap Index during the third quarter. Stock selection in the consumer staples and healthcare sectors drove outperformance of the strategy. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Mid Cap Strategy highlighted stocks such as QXO, Inc. (NYSE:QXO). QXO, Inc. (NYSE:QXO) is a roofing, waterproofing, and other building products distributor. The one-month return of QXO, Inc. (NYSE:QXO) was -0.74%, and its shares gained 23.37% of their value over the last 52 weeks. On November 12, 2025, QXO, Inc. (NYSE:QXO) stock closed at $18.79 per share, with a market capitalization of $12.672 billion.

ClearBridge Mid Cap Strategy stated the following regarding QXO, Inc. (NYSE:QXO) in its third quarter 2025 investor letter:

“We added a new position in QXO, Inc. (NYSE:QXO), a newly formed building materials distribution platform in the industrials sector led by Brad Jacobs. We have a long history with Jacobs, an executive with a strong track record of building and scaling businesses such as XPO and United Rentals. The company is pursuing a strategy of consolidating the fragmented building materials industry by acquiring mid-size distributors and applying advanced technology, logistics and pricing systems to improve efficiency and profitability. We see the potential for the company to evolve into a scaled leader with meaningful margin expansion opportunities.”

In another article, we covered QXO, Inc. (NYSE:QXO) and shared the list of stocks set to explode in 2026. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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