Nov. 11 at 5:41 PM
$DXPE sold off nearly 20% after Q3 earnings, but I think the market overreacted.
Revenue hit a record , up 3% sequentially, and IPS margins stayed strong near 18%. The EPS miss came from temporary SG&A inflation, insurance costs, and mix, not from weakening demand.
Backlog remains near record highs, M&A momentum is intact, and management reaffirmed its margin path toward 12% adjusted EBITDA.
At under
$100, the stock trades at roughly 9x forward EBITDA, a steep discount for a business that keeps compounding double-digit EPS growth.
To me, this looks like a classic “unequal and opposite overreaction.” The long-term fundamentals haven’t changed; if anything, this pullback gives those who missed the February entry another chance.
Full Q3 review and thesis here 👉 https://www.beatingthetide.com/p/dxp-enterprises-dxpe-q3-2025-overreaction
