Latest news with #BeaconRoofingSupply
Yahoo
21-05-2025
- Business
- Yahoo
Why QXO Stock Is Down Today
QXO announced a secondary offering to replenish its cash reserves. The company has stated its intentions to be a consolidator, and these deals are a way to raise cash to grow the business. 10 stocks we like better than Qxo › QXO (NYSE: QXO) is restocking its war chest, but that comes with a near-term hit to existing holders. Shares of QXO traded down 10% as of 11 a.m. ET after the building products distribution company launched a new stock and convertible offering. QXO is a new company formed by serial entrepreneur Brad Jacobs that aims to consolidate the building products distribution business. The company closed its first deal last month, an $11 billion purchase of Beacon Roofing Supply, and remains on the hunt for further targets. Late Monday, QXO took a step to replenish its cash coffers. The company said it was looking to raise $1 billion via a sale of common shares and a separate issue of convertible stock. QXO said it would use the net proceeds to repay indebtedness under its senior secured term loan facility, "which will strengthen the company's position with respect to future acquisition opportunities." Existing shares tend to come under pressure when a secondary offering is announced because it adds additional supply to the market, which can alter supply and demand dynamics. In QXO's case, the sale comes at a time when the stock was on an upswing, meaning that despite Wednesday's decline, the stock is still up more than 3% since late last week. Investors need to focus on the long-term here. Yes, in the near term, the stock sale will cause dilution. But those buying in should focus on what Jacobs is trying to build and understand that project will require capital. Jacobs is the architect of two of the top-performing Fortune 500 companies of the last decade, United Rentals and XPO. He's following the same playbook here, which involves both using tech to expand margins and grow organically, as well as consolidating fragmented markets. Jacobs has targeted $50 billion in annual sales for QXO in the years to come, compared to about $10 billion right now. As QXO grows, it should be able to use free cash flow to fund its dealmaking activities. But for now, the offerings represent the quickest, most efficient way to build capital. Before you buy stock in Qxo, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Qxo wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Lou Whiteman has positions in QXO and XPO. The Motley Fool recommends XPO. The Motley Fool has a disclosure policy. Why QXO Stock Is Down Today was originally published by The Motley Fool
Yahoo
25-04-2025
- Business
- Yahoo
3 Reasons BECN is Risky and 1 Stock to Buy Instead
Beacon Roofing Supply currently trades at $123.42 and has been a dream stock for shareholders. It's returned 536% since April 2020, blowing past the S&P 500's 91.2% gain. The company has also beaten the index over the past six months as its stock price is up 32.2%. Is now the time to buy Beacon Roofing Supply, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it's free. We're happy investors have made money, but we're cautious about Beacon Roofing Supply. Here are three reasons why you should be careful with BECN and a stock we'd rather own. Established in 1928, Beacon Roofing Supply (NASDAQ:BECN) distributes residential and commercial roofing materials and complementary building products. We can better understand Building Material Distributors companies by analyzing their organic revenue. This metric gives visibility into Beacon Roofing Supply's core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement. Over the last two years, Beacon Roofing Supply's organic revenue averaged 3.4% year-on-year growth. This performance was underwhelming and suggests it may need to improve its products, pricing, or go-to-market strategy, which can add an extra layer of complexity to its operations. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Beacon Roofing Supply's revenue to rise by 3.7%, a deceleration versus its 7.6% annualized growth for the past two years. This projection is underwhelming and indicates its products and services will face some demand challenges. While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business. Sadly for Beacon Roofing Supply, its EPS declined by 4.6% annually over the last two years while its revenue grew by 7.6%. This tells us the company became less profitable on a per-share basis as it expanded. Beacon Roofing Supply isn't a terrible business, but it doesn't pass our bar. With its shares outperforming the market lately, the stock trades at 15.6× forward price-to-earnings (or $123.42 per share). This valuation multiple is fair, but we don't have much faith in the company. We're fairly confident there are better investments elsewhere. Let us point you toward a fast-growing restaurant franchise with an A+ ranch dressing sauce. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
Yahoo
24-04-2025
- Business
- Yahoo
Why Beacon Roofing Supply, Inc. (BECN) Is Up the Most So Far in 2025
We recently published a list of . In this article, we are going to take a look at where Beacon Roofing Supply, Inc. (NASDAQ:BECN) stands against other industrial stocks that are up the most so far in 2025. Industrial stocks are sensitive to the economic cycle. Many of them have already fallen victim to the downturn and have reversed much of their earlier gains from the past few years. However, 2025 is shaping up to be a breakout year for industrial stocks elsewhere. The industrial sector is very broad, and you'll always find winners that outpace expectations and draw the attention of investors who once overlooked these workhorse companies. Manufacturing and industrial firms have doubled down on digital transformation and have poured resources into automation to boost efficiency. This investment is paying off as companies become more agile and better equipped to handle shocks, whether from geopolitical tensions, labor shortages, or shifting customer needs. It's worth looking into the biggest winners so far this year, as they could continue building on the momentum. For this article, I screened the best-performing industrial stocks year-to-date. I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A construction site with workers wearing hard hats and safety vests, installing roofing materials. Number of Hedge Fund Holders In Q4 2024: 53 Beacon Roofing Supply, Inc. (NASDAQ:BECN) is the largest publicly traded distributor of roofing materials and complementary building products in the United States and Canada. The most significant event driving the stock higher in 2025 is QXO's highly publicized acquisition offer, which came at a substantial premium to Beacon's unaffected share price and sparked considerable trading activity and speculation about the company's future. Beacon Roofing Supply, Inc. (NASDAQ:BECN)'s board has advised shareholders to reject the offer, arguing it undervalues the company's growth potential and strategic plans, which have fueled further investor optimism. In addition to the takeover interest, Beacon reported strong first-quarter 2025 results, with revenue up 15% year-over-year, driven by robust demand in both residential and commercial roofing segments and successful execution of its Ambition 2025 growth strategy. The company also completed the acquisition of DM Figley Company, expanding its waterproofing division and opening new branches in key states, which aligns with its market expansion goals. The consensus price target of $121.5 implies 2% downside. Beacon Roofing Supply, Inc. (NASDAQ:BECN) stock is up 22.01% year-to-date. Overall, BECN ranks 9th on our list of industrial stocks that are up the most so far in 2025. While we acknowledge the potential of BECN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BECN but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Business Wire
24-04-2025
- Business
- Business Wire
QXO Announces Upsize and Pricing of Senior Secured Notes by Queen MergerCo, Inc.
GREENWICH, Conn.--(BUSINESS WIRE)--QXO, Inc. (NYSE: QXO) ('QXO' or the 'Company') announced today that its subsidiary, Queen MergerCo, Inc. ('Merger Sub'), has priced a $2.25 billion offering (the 'Offering') of 6.75% Senior Secured Notes due 2032 (the 'Notes') at par. The Offering was increased from the previously announced $2 billion. Merger Sub was created as part of QXO's planned acquisition of Beacon Roofing Supply, Inc. ('Beacon'), under the merger agreement dated March 20, 2025 (the 'Merger Agreement'). The Offering is expected to close on April 29, 2025, subject to market and other conditions. Merger Sub intends to use the proceeds from the Offering, along with borrowings under new senior secured credit facilities, proceeds from QXO's previously announced equity offerings, and available balance sheet cash, to fund the transactions contemplated by the Merger Agreement and pay related fees and expenses. The issuance and sale of the Notes has not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act'), or the securities laws of any other jurisdiction, and the Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions outside the United States in reliance on Regulation S under the Securities Act. This press release is issued pursuant to Rule 135c under the Securities Act and does not constitute an offer to sell or a solicitation of an offer to buy any securities described herein, nor will these securities be sold in any state or other jurisdiction where such an offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction. About QXO QXO plans to become the leader in the $800 billion building products distribution industry, with the goal of generating outsized value for shareholders. The company is targeting annual revenue of $50 billion in the coming decade through accretive acquisitions and organic growth. QXO recently signed a definitive agreement to acquire Beacon Roofing Supply, Inc. for approximately $11 billion, making QXO the second-largest distributor of roofing products in the United States upon closing, expected the week of April 28, 2025. In addition, QXO provides technology solutions to clients in the manufacturing, distribution and service sectors. Visit for more information. Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements. Statements that are not historical facts, including statements about beliefs, expectations, targets or goals and the use of proceeds from the Offering, are forward-looking statements. These statements are based on plans, estimates, expectations and/or goals at the time the statements are made, and readers should not place undue reliance on them. In some cases, readers can identify forward-looking statements by the use of forward-looking terms such as 'may,' 'will,' 'should,' 'expect,' 'opportunity,' 'intend,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'target,' 'goal,' or 'continue,' or the negative of these terms or other comparable terms. Forward-looking statements involve inherent risks and uncertainties and readers are cautioned that a number of important factors could cause actual results to differ materially from those contained in any such forward-looking statements. Factors that could cause actual results to differ materially from those described herein include, among others: (i) the risk that the proposed acquisition may not be completed on the anticipated terms in a timely manner or at all; (ii) the failure to satisfy any of the conditions to the consummation of the proposed acquisition, including uncertainties as to how many of stockholders of Beacon will tender their shares in the tender offer; (iii) the effect of the pendency of the proposed acquisition on each of QXO's and Beacon's business relationships with employees, customers or suppliers, operating results and business generally; (iv) the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the Merger Agreement, including circumstances that require Beacon to pay a termination fee; (v) the possibility that the proposed acquisition may be more expensive to complete than anticipated, including as a result of unexpected factors or events, significant transaction costs or unknown liabilities; (vi) potential litigation and/or regulatory action relating to the proposed acquisition; (vii) the risk that the anticipated benefits of the proposed acquisition may not be fully realized or may take longer to realize than expected; (viii) the impact of legislative, regulatory, economic, competitive and technological changes; (ix) QXO's ability to finance the proposed transaction, including the ability to obtain the necessary financing arrangements set forth in the commitment letters received in connection with the proposed acquisition; (x) unknown liabilities and uncertainties regarding general economic, business, competitive, legal, regulatory, tax and geopolitical conditions; and (xi) the risks and uncertainties set forth in QXO's and Beacon's Securities and Exchange Commission filings, including each company's Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements should not be relied on as predictions of future events, and these statements are not guarantees of performance or results. Forward-looking statements herein speak only as of the date each statement is made. QXO does not undertake any obligation to update any of these statements in light of new information or future events, except to the extent required by applicable law.
Yahoo
23-04-2025
- Business
- Yahoo
Is QXO, Inc. (QXO) The Top Falling Stock with Unusual Volume?
We recently published a list of . In this article, we are going to take a look at where QXO, Inc. (NYSE:QXO) stands against other top falling stocks with unusual volume. Uncertainty around tariffs and macroeconomic conditions has dented investor confidence, resulting in stock prices falling. While some stocks have come under pressure due to the above two reasons, others have simply followed the market direction or have dipped for company-specific reasons. Regardless of the reasons for stocks going down, falling stocks provide an opportunity for fresh investors to get in at good prices. Once the risks subside, these stocks usually recover quickly as well. We decided to uncover these stocks and see if it makes sense to put money in them to take advantage of the ongoing market turmoil. To come up with our list of top 20 stocks falling with unusual volume, we looked at stocks over $300 million in market cap, their one-week performance, and used relative volume to detect the unusual volume activity. Relative volume compares the daily volume to the three-month average trading volume of the stock, making it easy to detect spikes in volume. These spikes usually signal something important is happening, which, when combined with falling prices, becomes a red flag that investors can't ignore. A data centre room with cloud technology, illustrating the enterprise application software services. QXO, Inc. (NYSE:QXO) is a software company that offers products like Accumatica, Sage, and similar ERP products. It also provides training, support, and other technical services related to these products. The company's stock is down 8.02% in a week on a relative volume of 2.05. On April 16th, QXO, Inc. (NYSE:QXO) announced that it would raise $500 million through a stock offering. The amount will be used to help complete the Beacon Roofing Supply acquisition. While the news caused the stock to tank, the move is in line with the company's objective of disrupting the building products distribution industry via acquisitions. The firm aims to disrupt through the use of modern technology, combining the power of e-commerce with data analytics and logistics expertise. Prior to Beacon Roofing Supply, QXO, Inc. (NYSE:QXO) had also offered $9.4 billion to Rexel, a French electrical distributor. That deal didn't go through, but it gave an idea of how serious the company is in achieving dominance through acquisitions. Overall, QXO ranks 10th on our list of top falling stocks with unusual volume. While we acknowledge the potential of QXO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than QXO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
