Root, Inc.: An Attractive Speculative Buy Upon A Successful Pivot

  • Root, Inc. has successfully pivoted from a costly direct-to-consumer model to a scalable, embedded insurance platform, notably partnering with Carvana to lower customer acquisition costs and boost retention. Financials have improved significantly: positive operating cash flow, EBITDA profitability, and an improving loss ratio signal a sustainable turnaround and operational discipline. ROOT trades at a notable valuation discount to peers despite its turnaround, offering 30-60% potential upside if the market re-rates its improved fundamentals.