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

We came across a bullish thesis on QXO, Inc. on Deep Value Capital’s Substack. In this article, we will summarize the bulls’ thesis on QXO. QXO, Inc.’s share was trading at $21.81 as of June 25^th. QXO’s forward P/E was 62.50 according to Yahoo Finance.

QXO is a newly formed company targeting the massive yet antiquated $800B+ building products distribution market in the U.S. and Europe, which still relies heavily on phone and fax orders. The strategy is straightforward: acquire strong, established building supply businesses, modernize them with technology, and consolidate similar acquisitions to achieve scale and cost efficiencies.

The company’s first major move is the $11B acquisition of Beacon Roofing Supply, set to close in April 2025. Beacon generated $9.76B in revenue in 2024, with 80% of its business coming from non-discretionary remodeling and repair—offering resilience against economic cycles. Additionally, 97% of its revenue is U.S.-based with domestic material sourcing, insulating it from tariff risks. The driving force behind QXO is Brad Jacobs, a proven operator with a track record of building billion-dollar companies in fragmented industries using the same acquisition-and-integration model.

Jacobs founded United Waste Systems, delivering a 55% CAGR before selling it for $2.2B. He also created United Rentals, now North America’s largest equipment rental firm, and transformed XPO Logistics into a $17.6B+ supply chain powerhouse before spinning it into XPO, GXO, and RXO. With $5B already raised and Jacobs at the helm, QXO has both the capital and the execution capability to replicate past successes.

The opportunity lies in low market awareness, a clear operational edge, and a highly fragmented industry ripe for disruption. For long-term investors, this represents a classic DeepValue setup with significant upside potential and a proven operator leading the charge.

Previously we covered a bullish thesis on QXO, Inc. by Frankxdxdxd on the Value Investing Subreddit in April 2025, which highlighted the company’s plan to digitize and consolidate the $800B building products distribution industry, supported by strong secular trends and Brad Jacobs’ M&A playbook. The company’s stock price has appreciated approximately by 75% since our coverage.

This is because the thesis has continued to play out with momentum around the Beacon acquisition. The thesis still stands as Jacobs’ track record and industry dynamics remain strong. Deep Value Capital shares a similar view but emphasizes on the market’s underappreciation of Jacobs’ execution and timing.

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