Jim Cramer on QXO: "I am Going With Brad Jacobs"

QXO, Inc. (NYSE:QXO) is one of the 11 stocks that Jim Cramer recently commented on. A caller asked if it was a good time to start a position in the stock or if they should hold off. Cramer replied:

“I am going with Brad Jacobs. He’s the Houdini of people. He’s a billion… how to make a billion. Makes a billion when he walks down the street. He makes a billion when he looks out the window. I want to be in his billionaire train.”

QXO (NYSE:QXO) supplies a variety of building materials, including roofing systems, siding, waterproofing solutions, insulation, and construction tools. The company provides asphalt, metal, wood, and tile roofing, as well as exterior and interior building components. Tsai Capital stated the following regarding QXO, Inc. (NYSE:QXO) in its Q4 2024 investor letter:

“We initiated a position in QXO, Inc. (NYSE:QXO) at approximately $11 per share. Under the leadership of Brad Jacobs, the company is in the early stages of executing a bold plan to consolidate and disrupt the $800 billion building products distribution industry. Having previously invested in two of Brad’s highly successful ventures, United Rentals and XPO Logistics, Tsai Capital is excited to support his latest endeavor.

It’s our goal to partner with exceptional capital allocators. Having followed Brad’s remarkable career for nearly three decades and having spent many hours speaking with him over the years, I consider him one of the best in the field. Notably, his personal commitment of $900 million to QXO further aligns his interests with ours.

With approximately $5 billion in cash and no debt, QXO is well-positioned to make its first acquisition in North America, targeting a major player in the industry. Based on Brad’s proven playbook, we believe this initial acquisition will serve as a platform for further acquisitions.

Although QXO’s stock price has appreciated since our initial purchase, we believe the market has yet to fully recognize the extent to which the company is likely to deploy capital at attractive rates of return, not to mention the economic moat that Brad has already built. The company’s advantages are grounded in an exceptional network of professional contacts that he has developed over decades and a carefully curated team of driven and talented professionals, many of whom have worked with him in the past.”

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.