ROOT INC/OH -CLASS A (NASDAQ:ROOT) – A Growth Stock Worth Watching

ROOT INC/OH -CLASS A (NASDAQ:ROOT) was identified by our stock screener as a potential candidate for growth investors following Louis Navellier's "Little Book That Makes You Rich" strategy. The company shows strong momentum in earnings, revenue growth, and cash flow, making it an interesting prospect for those focused on high-growth stocks.

Why ROOT Fits the Little Book Criteria

• Positive Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 187.25% over the last three months. Additionally, ROOT has beaten EPS estimates in all of the last four quarters, with an average surprise of 223.67%.
• Strong Sales & Earnings Growth: Revenue grew 98.66% year-over-year, while quarterly sales increased 37.07%. EPS growth was even more impressive, with a 354.76% jump in the latest quarter and 141.18% over the past year.
• Expanding Profitability: Operating margin improved by 185.34% year-over-year, indicating better cost efficiency as revenue scales.
• High Cash Flow Growth: Free cash flow surged 178.07%, suggesting the company is generating ample cash to fund operations and growth.
• Solid Return on Equity: ROOT’s ROE of 13.71% outperforms 65% of its insurance industry peers.

Fundamental Overview

ROOT’s financial health is mixed. While profitability metrics like operating margin and profit margin lag behind industry averages, the company has shown significant improvement. Valuation remains a concern, with a high P/E ratio of 42.42, but this may be justified if earnings growth continues at the expected 25.01% annual rate.

For a deeper look, review the full fundamental analysis report for ROOT.

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Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.