ROOT Stock Analysis: Buy, Sell, or Hold?
ROOT - Root, Inc. Class A Common Stock
$62.13
-0.82 (-1.30%)
▼
HOLD
LOW Confidence
Last Updated: January 30, 2026
Earnings: Feb 25, 2026
23d
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4 traders called ROOT this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: ROOT shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: ROOT shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$130.22
Based on 14.1% avg growth
INTRINSIC VALUE TODAY
$80.85
23.2% Margin of Safety
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ROOT is currently trading at $62.13, which is considered oversold relative to its 30-day fair value range of $67.35 to $75.33. From a valuation perspective, the stock is trading at a discount (Forward PE: 22.8) compared to its historical average (29.2). Remarkably, the market is currently pricing in an annual earnings decline of 7.8% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, ROOT is in a strong downtrend. Immediate support is located at $60.10, while resistance sits at $73.04.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (11th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $111.60 (+79.6%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, ROOT is in a strong downtrend. Immediate support is located at $60.10, while resistance sits at $73.04.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (11th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. Wall Street analysts see significant upside, with an average price target of $111.60 (+79.6%). The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$67.35 -
$75.33
Company Quality Score
50/100
(HOLD)
Options IV Signal
11th percentile
(COMPLACENCY WARNING)
Volume Confirmation
HIGH
Confidence Score
83.5%
Protect Your Profits
Holding ROOT? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Options cheap (IV 11th percentile)
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 79.6% below Wall St target ($111.60)
- CAUTION: Recommendation downgraded due to -9.8% 5-day decline
Fair Price Analysis
30-Day Fair Range
$67.35 -
$75.33
Current vs Fair Value
OVERSOLD
Expected Move (7 Days)
±$5.95
(9.6%)
Support & Resistance Levels
Support Level
$60.10
Resistance Level
$73.04
Current Trend
Strong Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
22.84
Wall Street Target
$111.60
(+79.6%)
Revenue Growth (YoY)
26.9%
Profit Margin
3.7%
Valuation Discount vs History
-7.8% cheaper
PE vs Historical
22.8 vs 29.2
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-7.8%
(market-implied from PE analysis)
1-Year Target
$57.28
(-8%)
2-Year Target
$52.82
(-15%)
3-Year Target
$48.70
(-22%)
3-Yr Target (if PE normalizes)
(PE: 23→29)
$62.25
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.8, Growth: 24.2%)
$119.04
(+92%)
Base:
(SPY PE: 22.3, Growth: 24.2%)
$116.21
(+87%)
Bear:
(PE: 19.0, Growth: 24.2%)
$98.78
(+59%)
📈
Valuation based on Current Earnings
Trailing PE: 19.58 | Current EPS (TTM): $3.36
Bull Case
$58.58
(-6%)
Analyst growth -19.0%, PE expands to 21.5
Base Case
$53.26
(-14%)
Market implied -19.0%, PE stable at 19.6
Bear Case
$44.74
(-28%)
Severe decline -20.0%, PE contracts to 16.6
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 22.8 to 29.2
Stabilization Target:
$79.42
(+27.8%)
PE Expansion Potential:
+27.8%
Last updated: February 01, 2026 4:20 AM ET
Data refreshes hourly during market hours. Next update: 5:20 AM
Data refreshes hourly during market hours. Next update: 5:20 AM
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Technical Signals Check
Is ROOT showing a specific setup today?
Insider Activity (6 Months)
0
Buys
2
Sells
Net
INSIDERS SELLING
Recent Transactions
Alexander E Timm
SELL
10861 shares
2025-09-02
Mahtiyar Bonakdarpour
SELL
5750 shares
2025-09-02
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Advanced ROOT Option Strategies
Professional options setups generated by AI based on today's ROOT price and gamma walls.
