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

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 $21.48 as of September 9th. QXO’s trailing and forward P/E were 2.28 and 43.48 respectively according to Yahoo Finance.

QXO, Inc., headquartered in Greenwich, Connecticut, is positioning itself as a transformative player in the building products distribution sector, serving contractors, distributors, and suppliers across the U.S. and Canada. The company focuses on roofing, waterproofing, and complementary products, operating in an $800 billion addressable market. Its model combines an extensive branch network with digital platforms for streamlined ordering and delivery, while value-added services like ERP software, inventory management, and customer support create opportunities for recurring revenue.

Strategic partnerships further expand its product offering and market reach. QXO has set an ambitious long-term target of $50 billion in annual revenue within the next decade, supported by accretive acquisitions, most notably the $11 billion purchase of Beacon Roofing Supply in 2025. Complementing M&A activity, the company is investing heavily in technology, including AI-driven pricing and logistics tools, to enhance efficiency and customer experience, while pursuing geographic expansion across North America with sustainable practices. However, the strategy carries execution risks, including potential integration challenges from large acquisitions, exposure to construction cycles, raw material cost fluctuations, and broader macroeconomic uncertainties in North America and Europe.

Despite these challenges, QXO benefits from experienced leadership, including founder Brad Jacobs, whose prior ventures delivered over 30,000% returns to investors over 30 years, and a senior team with deep institutional knowledge. With disciplined integration, careful risk management, and sustained execution, QXO is well-positioned to capture significant opportunities in a fragmented sector. The combination of a large market, technology-enabled operations, recurring revenue streams, and seasoned management makes QXO a compelling investment, offering a potentially low-risk route to outsized returns for investors willing to engage with its ambitious growth trajectory.

Previously we covered a bullish thesis on QXO, Inc. (QXO) by Frankxdxdxd in April 2025, which highlighted Brad Jacobs’ M&A-driven playbook, the Beacon Roofing Supply acquisition, and growth in a fragmented $800 billion market. The company's stock price has appreciated approximately by 72% since our coverage. The thesis still stands as QXO executes on digital enablement and expansion. Wonder Stocks shares a similar bullish perspective but emphasizes execution risks and macroeconomic exposure.

QXO, Inc.  is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 36 hedge fund portfolios held QXO at the end of the first quarter which was 33 in the previous quarter. While we acknowledge the potential of QXO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.