Why These 15 Insurance Stocks Are Skyrocketing So Far In 2025

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1. Root Inc (NASDAQ:ROOT)

Number of Hedge Fund Holders In Q4 2024: 16

Root Inc (NASDAQ:ROOT) is a tech-driven insurance company.

The stock is up significantly so far in 2025 as it successfully refinanced its $300 million term loan facility with BlackRock late last year. This reduced its principal to $200 million and lowered interest rates by 300 basis points (to SOFR + 600 basis points). This move is expected to cut interest expenses by approximately 50% on a run-rate basis.

Moreover, Root expanded its auto insurance services to Minnesota in January 2025. It increased its coverage to over 77% of the U.S. population and has benefited from broader market momentum.

Investors are optimistic about its Q4 2024 earnings release on February 26, 2025.

The consensus price target of $75 implies 25.16% downside.

ROOT is up 38.04% year-to-date.

While we acknowledge the potential of ROOT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher 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 Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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