Analyst Highlights QXO as a Leading Investment Opportunity

Stephanie Link, Chief Investment Officer at Hightower, has identified QXO, Inc. (NYSE:QXO) as a promising investment, citing the company’s strategic leadership and growth potential. During a recent appearance on CNBC, Link expressed her confidence in QXO, a distributor of roofing, waterproofing, and building products in the United States. She characterized the company’s CEO, Brad Jacobs, as an industry pioneer, noting his extensive experience and prior success at firms such as United Reynolds, XPO, and Waste Management.

Link highlighted Jacobs’ personal investment of $1 billion into QXO as a strong indicator of his commitment. She described the company’s focus on acquisitions within the building products distribution sector as a “hidden way” to capitalize on the ongoing construction and housing market recovery. QXO’s impressive growth rate—reported to be five times that of the industry average—coupled with its current valuation at a discount, underscores its investment appeal.

Strategic Acquisitions Driving Growth

The recent acquisition of Beacon Roofing for $11 billion significantly bolstered QXO’s market position. According to the Patient Capital Opportunity Equity Strategy in its second quarter 2025 investor letter, this acquisition marks the beginning of a series of planned consolidations in the fragmented building products sector. The strategy is informed by a proven management playbook, successfully executed across various industries.

Management’s disciplined approach was evident when they opted out of a bidding war for GMS Inc., which ended with its acquisition by Home Depot. This decision reflects a long-term focus that could enhance QXO’s competitive edge in the market. The firm is setting ambitious targets, aiming for over $50 billion in annual revenue over the next decade, which suggests a robust growth trajectory under Jacobs’ leadership.

Link’s positive outlook on QXO aligns with the broader sentiment in the investment community, as the company continues to attract attention for its strategic potential. While acknowledging investment risks, she believes that QXO’s unique market position makes it a compelling choice for investors focusing on the construction sector.

Market Position and Future Prospects

Investors are encouraged to consider QXO not only for its current performance but also for its long-term growth strategy. The combination of a strong management team, significant capital investment, and a clear pathway for expansion positions QXO as a noteworthy player in the building products distribution industry.

As the housing market continues to evolve, companies like QXO that are leveraging innovative acquisition strategies and advanced technologies are likely to remain at the forefront of industry developments. With analysts like Link advocating for its potential, QXO could emerge as a significant opportunity for investors looking to capitalize on the next phase of market recovery.

In conclusion, QXO, Inc. stands out as a strategic investment choice in the building products sector. As the company embarks on a series of acquisitions, it is well-positioned to harness growth opportunities in the evolving housing market.