8 Unstoppable Stocks That Could Make You Richer

2. Root, Inc. (NASDAQ:ROOT)

Average Analysts Upside Potential as of October 25: 93.15%

Year-to-date gains as of October 25: 275.21%

Number of Hedge Fund Holders: 11

Root, Inc. (NASDAQ:ROOT) is a financial services company that provides insurance products and services to homeowners and renters. While trading at a discount with a price-to-earnings multiple of 1.90, it is one of the unstoppable stocks that could make you richer as it continues to disrupt the car insurance industry.

Root, Inc. (NASDAQ:ROOT) optimizes pricing and improves customer satisfaction using its in-house technology and machine learning models. Thanks to this strategy, it’s been able to focus on profitability while achieving some of the best loss ratios in the industry. Additionally, it has increased new writings by 120% annually, demonstrating significant progress in its partnership channel. The business is well-positioned to spur further growth with over a dozen partners and a strong pipeline of new opportunities.

Root, Inc. (NASDAQ:ROOT)’s competitive edge in the insurance sector stems from using driving behaviour rather than demographics to base insurance rates. Therefore, it utilizes over 20 billion miles of mobile telematics data to offer personalized insurance coverage. It also stands out due to its strong financial results that underline solid fundamentals and growth metrics backed by proprietary data, allowing it to streamline operations and enhance customer service.

While Root, Inc. (NASDAQ:ROOT) did deliver a net loss of $0.52 a share in the second quarter, it was better than the $1.74 a share expected and the $2.55 a share loss delivered last year in the same quarter. Disciplined underwriting and a focus on cost reduction have helped Root, Inc. (NASDAQ: ROOT) achieved a gross loss ratio of 61.6%, indicating its operational effectiveness and potent risk management skills.

Consequently, analysts on Wall Street believe the stock is a buy, going by the average price target of $75.60, which implies a 93.15% upside potential as of October 25, 2024.