QXO: High Risk, Even Higher Conviction

Summary QXO is the newest project of serial entrepreneur Brad Jacobs, who has a strong track record of driving outsized returns at prior ventures United Rentals and XPO. The building distribution industry is characterized by high fragmentation and low tech penetration, making it ripe for the Jacobs playbook of utilizing scale and tech leadership to drive value creation. A 60% YTD pullback in shares offers a highly attractive entry point towards our target of a $100bn market cap by 2035, yielding a 20%+ equity IRR. Michael M. Santiago/Getty Images News QXO, Inc. ( QXO ) is one of the largest publicly traded US building materials distributors, led by serial entrepreneur Brad Jacobs, who previously founded United Rentals ( URI ) and XPO ( XPO This article was written by White Star Research 1.51K Followers Follow Finance professional with experience across investment banking and capital markets with a great passion for fundamental long-only investing. Sector agnostic but a special emphasis on the global oil patch and aerospace & defense. Analyst’s Disclosure: I/we have a beneficial long position in the shares of QXO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.