Root Inc Stock Rallies 24% on Q3 Report, Beats Revenue & EPS

Car insurance company Root Inc (NASDAQ: ROOT) posted positive Q3 results after the Wednesday market close – earning investors a solid 25% premium when the markets opened on Thursday. Like always, it’s been a mixed bag of earnings this year, and despite Root Inc posting a quarterly loss, the company has demonstrated clear annual growth through smashing revenue predictions. 

The company unveiled a Q3 loss of $0.53 per share versus an estimate of $0.70 – a substantial improvement from a loss of $2.20 per share last year. This isn’t a first for the company, in fact, Root has surpassed the general EPS predictions three times – highlighting growth and increasing value for stakeholders. 

Similarly, Root also posted impressive revenue – posting a Q3 total of $93.8M which not only beat last year’s revenue of $50.5M, but also beat analyst estimates by 39.17%, making it the fourth time Root has beaten consensus revenue estimates. 

Despite numerous positive quarterly earnings, ROOT stock has been stuck in a bearish trend since February this year, with a year-to-date loss of 63.2%. This quarter’s earnings may offer some short-term respite, but it could take a lot to regain buyer momentum. ROOT is trading at $5.78, pushing towards the minor $6 resistance, with a daily gain of 24%.

Should You Invest in Root Shares?

One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now