QXO, Inc. (QXO): A Bull Case Theory 

We came across a bullish thesis on QXO, Inc. on Mispriced Assets’s Substack by Nick Nemeth. In this article, we will summarize the bulls’ thesis on QXO. QXO, Inc.’s share was trading at $18.73 as of November 28th. QXO’s trailing and forward P/E were 2.11 and 40.65 respectively, according to Yahoo Finance.

QXO, Inc. distributes roofing, waterproofing, and other building products in the United States. The author has initiated a starter position in QXO, primarily as a management bet on Brad Jacobs, a serial entrepreneur renowned for creating multibillion-dollar companies through acquisitions and operational excellence. Jacobs has repeatedly demonstrated an ability to consolidate fragmented industries, including United Waste Systems, United Rentals, and XPO Logistics, generating extraordinary returns for shareholders and building lasting market leaders.

QXO is his latest venture, a public holding company formed via a reverse merger with SilverSun Technologies in 2024, aimed at consolidating the highly fragmented $800 billion U.S. building products distribution sector. The company now stands as the largest publicly traded distributor of roofing, waterproofing, and related materials, with an ambitious goal of reaching $50 billion in annual revenue over the next decade.

QXO’s strategy is classic Jacobs: acquire, scale, and integrate. The first transformative deal was the $11 billion acquisition of Beacon Roofing Supply in April 2025, instantly providing coast-to-coast presence and a substantial revenue base. Jacobs has shown discipline in avoiding overbidding, walking away from GMS when Home Depot outbid them, and targeting strategic opportunities like Rexel selectively.

Integration is central to QXO’s upside; the company has streamlined operations, modernized technology, introduced AI-driven inventory and pricing systems, and is improving profitability in acquired businesses. Early initiatives, such as the centralized pricing platform, have already recovered significant margin leakage and improved stock availability, demonstrating the operational playbook in action.

Despite an initial hype-driven spike in 2024, QXO’s current $21 stock price offers exposure alongside Jacobs near his entry valuation. The business focuses on the resilient repair and remodel segment, with the U.S. as its primary market, mitigating execution risk. While still early in its journey, QXO presents substantial upside if Jacobs replicates his prior successes, combining scale, technology, and disciplined acquisitions to transform a fragmented sector into a national powerhouse. This is a calculated, long-term play on exceptional management and structural industry opportunity.

Previously we covered a bullish thesis on QXO, Inc. by Frankxdxdxd in April 2025, which highlighted Brad Jacobs’s plan to consolidate the $800 billion U.S. building products distribution industry through technology and acquisitions. The company’s stock price has appreciated approximately by 50.32% since our coverage. The thesis still stands as Nick Nemeth shares a similar view but emphasizes recent execution, including the Beacon acquisition and operational integration.

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Disclosure: None.