RXO Inc (NYSE: RXO)’s stock price has increased by 5.62 compared to its previous closing price of 15.72. However, the company has seen a 3.45% increase in its stock price over the last five trading sessions. https://247wallst.com reported 2025-06-20 that Key Points in This Article: Billionaire Brad Jacobs’ proven ability to transform small ventures into industry leaders through strategic acquisitions fuels optimism for his latest venture in the building products distribution market. His history of scaling businesses and spinning off successful entities showcases a knack for creating value, despite missing initial revenue targets. Jacobs’ ambitious consolidation strategy faces risks from a sluggish housing market, but his track record suggests potential for long-term success. Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more. Building a Giant Amid Market Headwinds Brad Jacobs is a business alchemist, transforming modest ventures into industry giants with a knack for strategic consolidation. Though not a household name, his track record speaks volumes. He catapulted United Rentals (NYSE:URI) from a regional equipment rental outfit to a national leader by snapping up smaller competitors. Similarly, he built United Waste Systems into a powerhouse before selling it to Waste Management (NYSE:WM) for $2.5 billion. Jacobs repeated this magic with Express-1 Expedited Solutions, morphing it into XPO Logistics (NYSE:XPO), a logistics titan. From XPO, he spun off GXO Logistics (NYSE:GXO) and RXO (NYSE:RXO), creating standalone giants in warehousing and freight brokerage. Jacobs did it again with QXO (NYSE:QXO), a $1 billion bet on the $800 billion building products distribution market. His plan? Consolidate the fragmented industry, targeting a $1 billion revenue run-rate in year one, $5 billion in three years, and tens of billions in a decade. He later increased the goal to $50 billion in annual revenue over the next decade. Given Jacobs’ Midas touch, QXO seems poised for success, but investors wonder: what’s next when his alphabet of triumphs runs dry? Empire-Building Playbook on Display Again Jacobs continues to charge forward with QXO to dominate the building products distribution industry. Following its $11 billion acquisition of Beacon Roofing Supply in April, QXO just surprised the market with a $5 billion all-cash offer for GMS (NYSE:GMS), a drywall and interior construction distributor. Jacobs’ strategy — consolidating fragmented markets with M&A and tech efficiencies — has sparked a 41% year-to-date stock surge and 110% rally from its 52-week low, though QXO lags 83% below last year’s price. I’m not too worried about that. QXO was thinly traded before Jacobs got involved and he subsequently raised $3.5 billion in equity by selling shares in a private placement and another $620 million with a second PIPE deal. It had over $5 billion in cash at the end of the first quarter. The company has since raised more than $2 billion in additional capital. With a knack for turning small players into giants, Jacobs’ ambition fuels QXO’s allure, but the U.S. housing market’s woes raise questions. Growth Prospects: Beacon, GMS, and Beyond QXO’s growth hinges on Jacobs’ M&A prowess and Beacon’s early success. Beacon’s 600 branches and $10 billion revenue provide instant scale, covering 90% of U.S. roofing markets. The GMS bid, at $95.20 per share (a 17.5% premium to where the stock traded before the deal was announced), aims to bolster interior construction, promising faster deliveries and digital tools like EagleView. Jacobs eyes $50 billion in revenue by 2035, doubling EBITDA in the legacy business via AI-driven pricing and inventory tech, and adding on more accretive acquisitions. Wall Street is on board with all four analysts covering QXO rating it a buy and assigning a consensus $34 per share one-year price target, which implies 52% upside. Wolfe Research has an industry high target of $44 per share, and William Blair analysts just initiated coverage with an “Outperform” rating, betting on QXO’s long-term dominance. An earlier Oppenheimer research note said QXO was eyeing around 40 companies that generate approximately $300 billion in aggregate annual revenue. Housing Market Challenges The U.S. housing market, however, throws a wrench. A 4-million-home shortage boosts repair demand, but high interest rates and Trump’s tariff threats stifle new construction, with 30% of QXO’s revenue tied to weak nonresidential projects. Existing home sales fell 0.5% in April from March, according to the National Association of Realtors, and new data from the U.S. Census Bureau showed that new housing starts declined 9.8% in May — the lowest level since May 2020. With no long-term debt and negligible operating lease obligations, QXO raises few liquidity fears, but GMS’s declining EBITDA margins — they dropped 315 basis points from 2022 to 2025, (9.1% from 12.2%, a 26% drop) hint of potential integration hurdles. These headwinds temper QXO’s near-term outlook in a volatile market. Is QXO a Buy Now? QXO’s growth potential under Brad Jacobs’ leadership is enticing, but its valuation and market risks call for caution. Trading at an enterprise value-to-sales ratio of 2x and a forward P/E of 39, QXO’s premium reflects high expectations for its M&A-driven growth. Yet, the shaky housing market could pose a near-term challenge. However, it should be noted that 80% of the business is repair and remodel, so QXO is less tied to the housing shortage than other building products stocks. Risk-tolerant investors may see QXO as a buy, given Jacobs’ track record and early Beacon synergies, but timing matters. A diversified portfolio with stable income stocks can offset QXO’s volatility. Key will be to monitor second-quarter earnings for progress on cost savings and GMS integration later on, assuming the offer is accepted. I don’t like betting against Jacobs, and QXO wouldn’t necesarily be a speculative bet, but it might be best suited for those willing to weather housing and market turbulence and who believe in Jacobs’ long-term vision. You can count me among them, but a dash of risk tolerance is essential. The post Should You Bet on This Billionaire Mastermind Behind Billion-Dollar Empires? appeared first on 24/7 Wall St.
Is It Worth Investing in RXO Inc (NYSE: RXO) Right Now?
RXO Inc (NYSE: RXO) has a price-to-earnings ratio of N/Ax that is above its average ratio. Additionally, the 36-month beta value for RXO is 1.56. There are mixed opinions on the stock, with 3 analysts rating it as a “buy,” 1 rating it as “overweight,” 14 rating it as “hold,” and 2 rating it as “sell.”
The average price predicted by analysts for RXO is N/A, which is -$1879983.5 below the current price. The public float for RXO is 160.56M and currently, short sellers hold a 5.44% ratio of that float. The average trading volume of RXO on July 01, 2025 was 1.88M shares.
RXO’s Market Performance
RXO stock saw an increase of 3.45% in the past week, with a monthly gain of 6.91% and a quarterly increase of -13.07%. The volatility ratio for the week is 3.75%, and the volatility levels for the last 30 days are 4.00% for RXO Inc (RXO). The simple moving average for the last 20 days is 4.79% for RXO stock, with a simple moving average of -24.57% for the last 200 days.
Analysts’ Opinion of RXO
Many brokerage firms have already submitted their reports for RXO stocks, with Oppenheimer repeating the rating for RXO by listing it as a “Perform.” The predicted price for RXO in the upcoming period, according to Oppenheimer is N/A based on the research report published on April 04, 2025 of the current year 2025.
Truist, on the other hand, stated in their research note that they expect to see RXO reach a price target of $24. The rating they have provided for RXO stocks is “Buy” according to the report published on March 13th, 2025.
Deutsche Bank gave a rating of “Hold” to RXO, setting the target price at $19 in the report published on March 07th of the current year.
RXO Trading at 8.62% from the 50-Day Moving Average
After a stumble in the market that brought RXO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -49.41% of loss for the given period.
Volatility was left at 4.00%, however, over the last 30 days, the volatility rate increased by 3.75%, as shares surge +9.47% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +25.68% upper at present.
During the last 5 trading sessions, RXO rose by +3.68%, which changed the moving average for the period of 200-days by -34.92% in comparison to the 20-day moving average, which settled at $15.85. In addition, RXO Inc saw -33.43% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RXO starting from Szlosek Thomas A, who purchase 7,500 shares at the price of $16.65 back on May 14 ’25. After this action, Szlosek Thomas A now owns 16,200 shares of RXO Inc, valued at $124,875 using the latest closing price.
Szlosek Thomas A, the Director of RXO Inc, purchase 8,700 shares at $14.41 during a trade that took place back on May 09 ’25, which means that Szlosek Thomas A is holding 8,700 shares at $125,354 based on the most recent closing price.
Stock Fundamentals for RXO
Current profitability levels for the company are sitting at:
- -0.01 for the present operating margin
- 0.16 for the gross margin
The net margin for RXO Inc stands at -0.06. The total capital return value is set at -0.03. Equity return is now at value -27.75, with -11.80 for asset returns.
Based on RXO Inc (RXO), the company’s capital structure generated 0.3 points at debt to capital in total, while cash flow to debt ratio is standing at -0.03. The debt to equity ratio resting at 0.43. The interest coverage ratio of the stock is -2.1.
Currently, EBITDA for the company is -187.0 million with net debt to EBITDA at 18.29. When we switch over and look at the enterprise to sales, we see a ratio of 0.88. The receivables turnover for the company is 4.41for trailing twelve months and the total asset turnover is 1.53. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.30.
Conclusion
In conclusion, RXO Inc (RXO) has seen mixed performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
