Is QXO a good stock to buy? We came across a bullish thesis on QXO, Inc. on Wonder Stocks’s Substack. In this article, we will summarize the bulls’ thesis on QXO. QXO, Inc.’s share was trading at $20.28 as of March 19th. QXO’s trailing and forward P/E were 1.71 and 59.17 respectively according to Yahoo Finance.
QXO, Inc. distributes roofing, waterproofing and complementary building products in the United States and Canada. QXO has completed its second major acquisition, signaling a decisive step in its strategy to deploy the $3 billion capital raise finalized in January 2026. The company acquired Kodiak Building Partners for $2.25 billion, comprising $2.0 billion in cash and 13.2 million shares, implying a valuation of roughly 0.94x 2025 revenue and 10.7x EBITDA. Kodiak operates across 26 states as a distributor of lumber, trusses, windows, doors, roofing, waterproofing, and complementary exterior construction materials.
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Management has indicated that the acquisition will be highly accretive to 2026 earnings, driven by QXO’s proprietary technology stack and procurement synergies, which are expected to scale Kodiak’s margins toward QXO’s long-term targets. The funding structure leverages the Series C Preferred Stock arrangement to maintain a lean balance sheet, while a strategic equity repurchase option allows QXO to buy back the 13.2 million shares issued to Kodiak’s sellers at $40 per share, capping dilution risk and aligning incentives.
Investor response has been enthusiastic, with shares rising 13% following the announcement, reflecting confidence in Brad Jacobs and his team’s disciplined approach to value-creating acquisitions. Having previously walked away from overvalued deals, QXO has demonstrated both patience and precision, ensuring the purchase price is attractive relative to expected synergies.
With at least one more acquisition reportedly in the pipeline and a clear path to margin expansion, QXO is positioned to generate substantial upside for shareholders. The combination of strategic deal-making, earnings accretion, and shareholder-friendly equity terms makes this a compelling bullish case, highlighting QXO’s ability to execute on growth while preserving capital efficiency and long-term value creation.
Previously, we covered a bullish thesis on QXO, Inc. (QXO) by Frankxdxdxd in April 2025, which highlighted Brad Jacobs’ strategy to transform the fragmented building products distribution industry through technology adoption and acquisitions like Beacon Roofing Supply. QXO’s stock price has appreciated by approximately 62.76% since our coverage. Wonder Stocks shares a similar view but emphasizes QXO’s second acquisition of Kodiak Building Partners, its accretive earnings impact, and shareholder-friendly equity structure, reinforcing the bullish thesis.
QXO, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held QXO at the end of the fourth quarter which was 65 in the previous quarter. 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.
Disclosure: None.
