We recently published a list of 11 Best Performing NASDAQ Stocks So Far in 2025. In this article, we are going to take a look at where Root Inc. (NASDAQ:ROOT) stands against other best performing NASDAQ stocks so far in 2025.
On March 29, T. Rowe Price portfolio manager Tony Wang appeared on CNBC’s ‘Closing Bell Overtime’ to discuss the current volatility in the tech sector, especially the NASDAQ. The NASDAQ underperformed throughout March and registered the largest decline since June 2022. But the question that now arises is whether this decline and volatility present a buying opportunity or not. Wang leans towards less caution and more confidence in this potential bull market. To support his sentiment, he cited that growth and momentum have both been high in recent years. Tech stocks in particular have seen substantial growth in the past 2 year. He thinks that valuations could further improve, given that the sector recent strong years came from AI infrastructure build out.
Wang also acknowledged that companies are naturally questioning whether current spending levels in the sector are sustainable or not. But he reiterated that compute will retain its value, despite concerns about whether it has a cyclical position or not. He also noted that deep tech could potentially lower inferencing costs and expand market access for companies that enter with limited capital. Like any other sector, cost reduction is an ideal long-term outcome for the tech industry as well.
Our Methodology
We used the Finviz stock screener to compile a list of all the best-performing NASDAQ stocks. We then picked the 11 NASDAQ stocks with the highest year-to-date gains, as of March 31. The stocks are ranked in ascending order of their year-to-date performance. We have also added the hedge fund sentiment for each stock which was sourced from Insider Monkey’s database.
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 (see more details here).
An experienced insurance agent explaining the benefits of an insurance product to a customer.
Root Inc. (NASDAQ:ROOT)
Number of Hedge Fund Holders: 16
Average Upside Potential as of March 31: 88.65%
Root Inc. (NASDAQ:ROOT) offers insurance products and services in the US. It provides automobile and renters insurance products. It operates a DTC model and serves customers through mobile applications and its website. Its direct distribution channels also cover digital media, independent agents, and referrals along with distribution partners.
The company’s partnership channel rapidly expanded in 2024. New writings through this channel more than doubled in Q4 year-over-year. This accounted for almost one-third of the company’s overall business in the quarter. This growth is supported by the company’s proprietary technology stack, which refers to its internally developed set of software and hardware tools that power its operations. It enables easy integration with partner platforms and offers insurance at the right time for customers.
In 2025, the company plans to expand its current channel and transition partners to fully embedded experiences. For instance, Carvana Insurance, which was built with Root Inc. (NASDAQ:ROOT), now offers a three-click, bondable purchase experience on the Carvana platform. The company’s current partnership pipeline is concentrated in the automotive, financial services, and independent agents segments.
Overall, ROOT ranks 7th on our list of best performing NASDAQ stocks so far in 2025. While we acknowledge the growth potential of ROOT, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ROOT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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.
