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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.

Home
Stocks
QXO, Inc.
EL7 Factor Analysis
How we score this
Overall7
Poor — bottom quartile of the marketSucker StockF 3/9DistressBetter than 7% of Market stocks, per EL7's model
FactorScoreDistributionValueAvgRank
▸
Valuation
34
—17.8xBottom tier
▸
Growth
91
408.3%▲7.1%Top tier
▸
Quality
23
-2.4%▼4.5%Bottom tier
▸
Safety
49
10.3x▼2.6xAround median
▸
Capital Return
6
0.00%▼2.12%Bottom tier
▸
Momentum
8
-26.7%▼2.9%Bottom tier
▸
Sentiment
76
7▲3Top tier
QXO

QXO QXO, Inc.

QXO, Inc. · NYSE
Market Closed
12.31
▲ ⁦+0.16%⁩ (+0.02)
Market Cap$12.8B
Beta2.29
52w Low52w High
12.1727.61
Last Week
⁦-4.43%⁩
Last Month
⁦-19.96%⁩
Last 3 Months
⁦-24.94%⁩
Last Year
⁦-43.94%⁩
Fair Value
Low confidenceCurrent price$12
Analyst target · 3 analysts
$28
—
Range ⁦$18–$32⁩
vs
DCF (estimate)
$-0.51
⁦-104%⁩
Sees it clearly overvalued
⁦13.3⁩% discount · ⁦12⁩% growth

Estimates — analyst targets and a simplified DCF, not investment advice.

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Analyst Consensus

This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.

Price Target· 3 analysts setting price target
$27.33
⁦+122.0%⁩
Current Price $12.31·Median $28.00
Low
$18.00
High
$32.00
Current price
$12.31
Average target
$27.33
Street summary

Consensus Stable as Analyst Coverage Broadens

The average price target remained stable at 27.33 over the last day and 7 days, despite the number of included analysts increasing from one analyst to three. Over 30 days, the consensus declined slightly from 27.60 to 27.33, a decrease of 0.98%, while the number of analysts remained unchanged. Current targets range between 18 and 32, with a median of 28, reflecting notable divergence in estimates compared with the current price of 12.31.

As of 2026-09-11
Revisions momentum · 30d
⁦-1.0%⁩
Average rating
★ 4.22
Buy
Analyst coverage
18
Buy conviction
100%
High
Rating activity · 30d
0↑ · 0↓
Target dispersion
114%
Wide
Analyst ratings over time18 analysts rating
4
14
Strong BuyBuyHoldSellStrong Sell
Rating trend — last 12 months4.20 → 4.22
Recent analyst moves
  • = Reiterate2026-08-14
    Benchmark
    Buy
  • = Reiterate2026-05-14
    Stephens & Co.
    —· $26.00
  • = Reiterate2026-05-13
    Robert W. Baird
    —· $30.00
Premium content
Key Financials

Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.

StockSector medianSector averagetypical sector range
MetricValuePosition within sectorVerdict
  • P/E (TTM)
    —
    —
  • Forward P/E
    26.56x
    4.57x36.58x
    Above average
  • EV / EBITDA
    49.65x
    3.43x27.47x
    Very expensive
  • FCF Yield
    1.1%
    -32.7%11.5%
    Strong
  • Revenue Growth YoY
    408.3%
    -10.7%43.4%
    Exceptional
  • EPS Growth YoY
    -110.0%
    -128.3%132.7%
    Weak
  • Gross Margin
    24.0%
    8.6%54.6%
    Near median
  • ROIC
    -2.4%
    -25.3%19.6%
    Above average
  • Net Debt / EBITDA
    10.30x
    0.55x4.37x
    Financial risk
  • Dividend Yield
    0.0%
    0.1%4.8%
    Low
  • Payout Ratio
    —
    —
  • Altman Z-Score
    1.50
    -5.667.97
    Above average
Financial Analysis
|

Stock Analysis

AI-generated
Based on 2025-02-27 data

Company Overview

The financial statements provided for QXO reflect a large revenue base, but the data do not break down revenue sources by business activity or segment, so the analysis focuses on the reported results without attributing Beacon's operations or products to QXO. In Q2 FY2026, QXO recorded revenue of $3.2 billion and gross profit of $803.0 million, equivalent to a calculated gross margin of approximately 25.1%.

QXO's net loss in Q2 FY2026 was approximately $55.0 million, or a loss of $0.14 per share. On a sequential basis compared with Q1 FY2026, revenue increased from $1.7 billion to $3.2 billion, gross profit rose from $409.3 million to $803.0 million, while the net loss narrowed from $227.1 million to $55.0 million and the gross margin improved from approximately 24.1% to approximately 25.1%.

On a trailing twelve-month basis for FY2026, revenue reached $9.9 billion and gross profit was $2.4 billion, but the net result remained a loss of $511.7 million and earnings per share were negative at approximately $0.67. These figures show that the expansion in revenue and the improvement in Q2 FY2026 results have not yet translated into sustainable net profitability.

What's Driving the Stock

  • The sequential increase in Q2 FY2026 revenue to $3.2 billion, compared with $1.7 billion in Q1 FY2026, represents the largest visible financial shift in the data provided, with the caveat that it should not be considered year-over-year growth because a comparable figure for Q2 of the previous fiscal year is unavailable.
  • Gross profit increased sequentially from $409.3 million in Q1 FY2026 to $803.0 million in Q2 FY2026, and the calculated gross margin improved by approximately one percentage point to nearly 25.1%.
  • The sequential net loss narrowed by approximately 76%, from $227.1 million in Q1 FY2026 to $55.0 million in Q2 FY2026, while the loss per share improved from $0.35 to $0.14.
  • The trailing twelve-month data for FY2026 still show a net loss of $511.7 million despite revenue of $9.9 billion, so the stock's direction depends on QXO's ability to convert its revenue scale into net profit.
  • The analyst consensus carries a Buy rating and an average target of $27.33, with a wide range between $18 and $32, reflecting positive expectations accompanied by meaningful disagreement over QXO's value.

Buying & Selling Case

▲ Buying Case3 pts

  • +Q2 FY2026 results show strong sequential improvement; revenue increased by approximately 88% and gross profit by approximately 96% compared with Q1 FY2026.
  • +The calculated gross margin improved from approximately 24.1% in Q1 FY2026 to approximately 25.1% in Q2 FY2026, while the net loss narrowed from $227.1 million to $55.0 million.
  • +The positive analyst consensus supports the buying case, with a consensus Buy rating and an average price target of $27.33, which is close to the upper end of the 52-week range of $27.61.

▼ Selling Case5 pts

  • −QXO has not achieved sustainable net profitability; it recorded a loss of $55.0 million in Q2 FY2026, while the trailing twelve-month loss for FY2026 was approximately $511.7 million and earnings per share were approximately negative $0.67.
  • −A positive price-to-earnings ratio cannot be calculated from the data provided because losses per share persist, reducing valuation clarity and making the company's $14.0 billion market capitalization more dependent on future earnings improvement that the annual results have not yet demonstrated.

Valuation

The average analyst target is $27.33, compared with a target range of $18 to $32 and a consensus Buy rating; the average is only approximately 1% below the 52-week range high of $27.61, while the highest target exceeds that high by approximately 16%. A positive price-to-earnings ratio is unavailable because trailing twelve-month earnings per share for FY2026 are negative, so analyst targets should be weighed against a net loss of $511.7 million, the wide target range, and the 52-week range of $13.15–$27.61.

BuyAnalyst target: $27.33(+122.0%)

Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.

FAQ

Did QXO become profitable in Q2 FY2026?

No, QXO recorded a net loss of $55.0 million in Q2 FY2026, or a loss of $0.14 per share. However, the loss narrowed from $227.1 million and $0.35 per share in Q1 FY2026. The trailing twelve-month data for FY2026 remain weaker, showing a net loss of $511.7 million.

What was the most notable improvement in QXO's Q2 FY2026 results?

Revenue increased sequentially from $1.7 billion in Q1 FY2026 to $3.2 billion in Q2 FY2026. Gross profit rose from $409.3 million to $803.0 million, and the calculated gross margin improved from approximately 24.1% to approximately 25.1%. This coincided with an approximately 76% decline in the net loss, but the comparison is sequential, not year-over-year.

How do analysts view QXO stock?

The stock carries a consensus Buy rating based on the data provided. The average price target is $27.33, with a high target of $32 and a low target of $18. The average is very close to the 52-week range high of $27.61, but the wide target range reflects meaningful disagreement over valuation.

Earnings callEDGAR filings30-day newsInsider activity

Automated analysis for informational purposes only — not investment advice.

  • −QXO's unsolicited offer to acquire Beacon at $124.25 per share was met, according to Beacon's February 27, 2025 call, with rejection by Beacon's Board of Directors and a recommendation that shareholders not tender their shares, which at the time demonstrated execution risks and opposition associated with the strategic initiative.
  • −Analyst valuations range from a low target of $18 to a high target of $32, a difference of $14, revealing substantial divergence in value estimates and increasing repricing risk if the improvement in results does not continue.
  • −The stock's 52-week range widened between $13.15 and $27.61, meaning the upper end is more than double the lower end, indicating high volatility that should be considered alongside business and profitability risks.
  • Why is there no price-to-earnings ratio for QXO stock?

    A positive price-to-earnings ratio is unavailable because reported earnings are negative. The loss per share was $0.14 in Q2 FY2026, and the loss per share in the trailing twelve-month data for FY2026 was approximately $0.67. Therefore, the traditional price-to-earnings ratio does not provide a useful basis for valuation before positive net profitability is achieved.

    How does the Beacon offer dated February 27, 2025 relate to the QXO analysis?

    Beacon's February 27, 2025 call stated that QXO launched an unsolicited tender offer on January 27, 2025 at $124.25 for each Beacon share. Beacon's Board of Directors unanimously determined that the offer undervalued the company and recommended that shareholders not tender their shares. This information establishes only the existence of the initiative and its rejection as of that date; the data provided do not establish a subsequent outcome for the offer or the completion of a transaction.