QXO, Inc. (QXO): A Bull Case Theory 

We came across a bullish thesis on QXO, Inc. on Bullseye Investing’s Substack. In this article, we will summarize the bulls’ thesis on QXO. QXO, Inc.’s share was trading at $18.58 as of October 10th. QXO’s trailing and forward P/E were 2.11 and 40.16 respectively according to Yahoo Finance.

QXO, Inc. (NYSE: QXO) is an early-stage consolidator in the building products distribution sector, targeting a fragmented $800 billion market with tech-enabled acquisitions. Led by serial M&A executive Brad Jacobs, whose track record includes creating multi-billion-dollar enterprises such as United Rentals and United Waste Systems, QXO has already made a notable move with its acquisition of Beacon Roofing Supply, instantly becoming the largest publicly traded U.S. roofing distributor. This acquisition illustrates QXO’s strategy: acquire established operators, implement operational and technological upgrades, and scale profitability.

The combination of QXO’s operations and Beacon Roofing’s strong financials—P/E of 12.74, ROE of 23.86%, and robust free cash flow—positions the company for substantial growth. QXO’s model seeks to modernize an industry historically slow to adopt technology, creating a competitive edge over traditional players. The company holds $5.08 billion in cash, providing ample firepower for future acquisitions such as BlueLinx or MRC Global, which could further expand its market presence and drive earnings growth. While valuation metrics appear stretched, with a forward P/E of 64.1, the stock’s recent pullback offers an attractive entry point, reflecting temporary uncertainty rather than structural weakness.

Key risks include operational reliance on Beacon Roofing, competitive pressures from Home Depot and Lowe’s, and potential interest rate increases, which could raise acquisition costs. Overall, QXO represents a high-upside opportunity for growth investors, with its disciplined acquisition strategy, technology-driven efficiencies, and Jacobs’ proven leadership. Assuming successful integration of Beacon and at least one additional acquisition in 2025, the stock has potential for a 30% upside to $25 over the next 12–18 months.

Previously we covered a bullish thesis on QXO, Inc. by Frankxdxdxd in April 2025, which highlighted Brad Jacobs’ M&A expertise, QXO’s plan to consolidate the fragmented $800B building products industry, and the Beacon Roofing acquisition as a growth catalyst. The stock has appreciated ~49% since coverage. The thesis still stands as QXO executes acquisitions. Bullseye Investing shares a similar view but emphasizes Beacon’s financials and near-term upside.

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Disclosure: None.