QXO, Inc. (QXO) Aiming to Revolutionize Building Products Distribution Market

QXO, Inc.’s stock was trading at $21.81 on June 25th with a forward P/E of 62.50. The company is targeting the $800B building products distribution market in the U.S. and Europe, planning to modernize the industry with technology and acquisitions. Their $11B acquisition of Beacon Roofing Supply is set to close in April 2025.

Beacon Roofing Supply generated $9.76B in revenue in 2024, with 80% coming from non-discretionary remodeling and repair. Brad Jacobs, the driving force behind QXO, has a successful track record in building billion-dollar companies through acquisitions. With $5B raised and Jacobs leading the charge, QXO has significant growth potential in a fragmented industry.

A previous bullish thesis on QXO highlighted the company’s plan to digitize and consolidate the building products distribution industry. Since then, the stock has appreciated by approximately 75% due to momentum around the Beacon acquisition. Deep Value Capital sees significant upside potential in QXO due to Jacobs’ execution and timing in a market that underappreciates his track record.

Read more at Yahoo Finance: QXO, Inc. (QXO): A Bull Case Theory