QXO (QXO 4.59%) is a newcomer to the public market with big plans to shake up the building materials industry. The company hasn’t made many headlines yet, but its impressive list of executives and backers has investors sitting up and taking notice.

QXO shares rose as much as 23.7 percent this week and were up 14 percent through midday Thursday, according to data from S&P Global Market Intelligence, as investors pile into stocks ahead of the company’s first big move.

Shop before the deals

QXO is the latest project from Brad Jacobs, a serial entrepreneur who previously founded and built United Waste Systems. United RentalsAnd XPO LogisticsEarlier this year, Jacobs and other investors took control of software company Silversun Technologies, renamed it QXO and invested $5 billion to acquire construction and building products distributors.

It’s difficult to value QXO right now. The company is essentially just a pile of cash and a plan to use mergers and acquisitions (M&A) to build a $50 billion distributor over the next decade. But Jacobs has a lot of credibility thanks to his past, and investors were eager to get in on the deal even before it was first announced.

A recent report from Oppenheimer struck a positive tone, calling the building materials industry “ripe” for consolidation and praising Jacobs for its successes so far. The analysts have not yet given the shares a rating.

Is QXO stock a buy?

When investing, a stock is often evaluated based on its future growth potential rather than the company’s current financials. However, it’s rare to find a stock with so little to report on its current business. Jacobs delivered market-beating returns in his previous ventures, and those jumping in today believe he’s likely to repeat that success at QXO.

There are good reasons for interest from growth investors who can handle volatility, but valuation should be considered. At current prices and factoring in warrants, QXO has a market cap of more than $11 billion today. If all goes according to plan, the company should easily reach that valuation. But investors need to be aware that QXO is still a work in progress.