11 Best Performing Stocks So Far In 2025

7. Root Inc. (NASDAQ:ROOT)

Year-to-Date Performance as of March 21: 110.28%

Number of Hedge Fund Holders: 16

Root Inc. (NASDAQ:ROOT) provides automobile and renters insurance products directly to consumers in the US. Using a mobile-first and online approach, it streamlines insurance services through its app and website. This is supplemented by digital media, agents, and referral partnerships.

The company’s DTC auto insurance is driven by advanced technology. In 2024, the company grew its customer base by 21%, bringing its total number of active insurance policies to over 414,000. The company also demonstrated effective risk management and paid out less in claims than expected. Specifically, it has a gross loss ratio of 59% and a gross combined ratio of 95%.

2024 marked the company’s first full year of net income profitability. It achieved $31 million in GAAP net income. In Q4 2024 alone, the net income was $22 million. Root Inc. (NASDAQ:ROOT) is reducing rates in select states due to its strong loss ratio. It’s also expanding its market reach, and now covers 76% of the US population. The company is investing in data-rich marketing and technology to fuel continued growth with a focus on long-term profitability over short-term gains.