QXO, Inc. (QXO): A Bull Case Theory 

We came across a bullish thesis on QXO, Inc. on Kairos Research’s Substack. In this article, we will summarize the bulls’ thesis on QXO. QXO, Inc.’s share was trading at $23.24 as of January 28th. QXO’s trailing and forward P/E were 2.11 and 66.67 respectively according to Yahoo Finance.

QXO, Inc. distributes roofing, waterproofing, and other building products in the United States. Brad Jacobs, a serial industrial entrepreneur with a 40-year track record of creating value through roll-ups, is now focused on QXO, a building materials distribution platform aiming to consolidate the fragmented $800 billion U.S. industry. Jacobs has historically delivered massive shareholder returns across ventures like United Waste Systems, United Rentals, and XPO Logistics, executing disciplined M&A while improving operations organically.

QXO was launched through an overhaul of SilverSun Technologies and a $1 billion equity infusion, primarily from Jacobs, enabling aggressive acquisitions beginning with the $11 billion Beacon Roofing Supply deal. The company targets a mix of non-discretionary repair and remodel business, which provides stable, recurring demand, alongside cyclical new construction revenue. QXO’s strategy mirrors Jacobs’ proven model: rebrand and streamline acquired companies, flatten organizational structures, align incentives with shareholders, implement technology across procurement, pricing, logistics, and sales, and pursue both greenfield and acquisition-driven growth.

This approach is designed to reduce integration drag, improve margins, and maximize return on capital. Jacobs maintains tight control with 49% ownership and strong board alignment, ensuring decisive execution. Valuation remains complex due to unknown future acquisitions, margins, and growth pace, but a base-case scenario targets $50 billion in revenue by 2032-2035, 13% EBITDA margins, and a 13x multiple, implying a potential $48 per share, or roughly 13%-14% IRR.

Risks include execution dependency on Jacobs, cyclical end markets, and potential dilution from equity financing. While speculative, QXO offers an opportunity to capitalize on Jacobs’ repeatable operational and M&A playbook, with substantial upside if the roll-up strategy succeeds and the company achieves scale efficiently.

Previously, we covered a bullish thesis on QXO, Inc. (QXO) by Frankxdxdxd in April 2025, which highlighted Brad Jacobs’ plan to consolidate the $800 billion U.S. building products distribution industry through acquisitions, technology, and his proven M&A playbook. QXO’s stock price has appreciated by approximately 86.51% since then due to investor confidence. Kairos Research shares a similar thesis but emphasizes detailed financial projections, margin targets, and IRR scenarios.

QXO, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 65 hedge fund portfolios held QXO at the end of the third 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.