Is it good time to buy QXO stock now and also is it undervalued currently, what is the target price?

The deep research logic is organized as follows: 

Okay, let's tackle this question about QXO stock. The user wants to know if it's a good time to buy and if it's undervalued, along with the target price. First, I need to go through all the provided references and background information to gather relevant data.

Starting with the financial metrics from the references. The closing price on 2025-07-17 is $21.83 . The P/E ratio is 230.67, which is quite high . The P/S ratio is 253.89, also very high, and the P/B ratio is 1.85 . High P/E and P/S ratios might indicate overvaluation, but since the company is in a growth phase with recent acquisitions, this could be justified.

Looking at the technical indicators: the 5-day moving average is 21.27, 10-day is 21.51, and 20-day is 21.88 . The current price is $21.83, which is slightly below the 20-day MA. The RSI is 60.42, which is neutral, and the MACD is -0.49, indicating a bearish signal . The support level is 20.52 and resistance is 22.14 . The stock is currently near the resistance level, so a breakout could be possible.

The company has a recent average price target of $33.2 with a consensus rating of Buy . Analysts like William Blair have a target range of $27-$44 , and Citi has a $33 price target . The stock has been volatile recently, with a 7.23% drop after a share sale  and a 21% surge on acquisition news . The user profile mentions interest in stocks with strong financial stability and growth potential, which QXO seems to fit with its strategic acquisitions and high analyst targets.

However, the financials show negative earnings and high debt-to-equity ratio , which could be a concern. The company has raised $2 billion in a share sale , which might dilute existing shareholders. The user is interested in blue-chip stocks, but QXO is a mid-cap with high volatility, which might not align perfectly. Still, the strategic moves and analyst optimism suggest potential upside.

Putting it all together, the stock is undervalued based on analyst targets but has risks due to high valuations and debt. The technicals are mixed, with support near $20.52 and resistance at $22.14. The user's interest in growth stocks and recent news-driven strategies makes QXO a candidate, but caution is needed due to the high P/E and debt levels.

### **Conclusion** 🎯
**QXO Inc. (QXO)** presents a compelling opportunity for long-term growth investors, particularly those aligned with **strategic acquisitions, fragmented industry consolidation, and high upside potential**. While the stock is **technically overbought** and faces **valuation concerns**, the **analyst consensus** and **strategic execution** by CEO Brad Jacobs suggest **undervaluation relative to growth prospects**. Here’s the breakdown:

---

### **Analysis** 📊

#### 1. **Valuation: Mixed Signals**
- **Current Price**: $21.83 .
- **Key Ratios**:
- **P/E (TTM)**: 230.67 (high, but justified by growth expectations) .
- **P/S (TTM)**: 253.89 (extremely high, reflecting premium on future revenue) .
- **P/B Ratio**: 1.85 (moderate, suggesting undervaluation relative to book value) .
- **Price Targets**:
- **Analyst Average**: $33.2 (52.9% upside) .
- **High Target**: $44 (101.5% upside) .
- **Undervaluation**: The stock is **undervalued relative to its growth trajectory** (target price range: $27–$44) .

#### 2. **Technicals: Overbought but Setup for Breakout**
- **Moving Averages**:
- **5-Day MA**: $21.27 (below current price) .
- **10-Day MA**: $21.51 (below current price) .
- **20-Day MA**: $21.88 (slightly above current price) .
- **Resistance/Support**:
- **Resistance**: $22.14 (near-term upside barrier) .
- **Support**: $20.52 (potential correction floor) .
- **Indicators**:
- **RSI**: 60.42 (neutral, not oversold) .
- **MACD**: -0.49 (bearish divergence, but short-term) .

|code|Ticker|Name|Date|Closing Price|market_code|
|---|---|---|---|---|---|
|QXO|QXO.N|QXO|20250717|21.82|169|

#### 3. **Fundamentals: High Growth, High Risk**
- **Recent Acquisitions**:
- **Beacon Roofing Supply**: $11B deal completed in April 2025 .
- **GMS Inc.**: Proposed $5B acquisition (27% premium) .
- **Financial Health**:
- **Debt**: $0 (post-acquisition financing) .
- **Cash**: $5.08B (strong liquidity for further deals) .
- **EBITDA**: Negative in recent quarters (integration costs) .
- **Growth Prospects**:
- **Revenue Target**: $50B by 2035 (637% growth) .
- **Market Share**: Largest U.S. roofing distributor post-Beacon deal .

#### 4. **Risks**
- **High Valuation**: P/E and P/S ratios are extreme .
- **Execution Risk**: Integration of acquisitions (Beacon, GMS) could face delays .
- **Competition**: Rival bids (e.g., Home Depot for GMS) .

---

### **Conclusion** 🎯
**QXO** is **undervalued relative to its growth potential** but carries **high risk** due to its speculative nature. The **$33.2 average price target** (52.9% upside) aligns with the **Buy consensus** . For **long-term, high-risk tolerance investors**, this is a **good time to buy** with a **target price range of $33–$44**.

**Final Take**: 🟢 **Buy** with a **12–18 month horizon**, focusing on **strategic execution** and **market consolidation**.