ROOT Stock Analysis: Buy, Sell, or Hold?
ROOT - Root, Inc. Class A Common Stock
$43.21
-0.05 (-0.12%)
▼
5d:
-9.79%
30d:
-11.24%
90d:
-40.18%
HOLD
LOW Confidence
Analysis Updated: Apr 2, 2026 12:00 AM ET
Earnings: May 06, 2026
Smart Money Accumulation
ROOT is down 3.7% this week, but smart money is accumulating calls. Top strike: $50 2026-06-18 with 153 OI. Call ratio: 64% View Scanner →
Strength: 3.2/10
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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
$155.19
Based on 14.5% avg growth
INTRINSIC VALUE TODAY
$96.36
55.2% 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 23.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: ROOT is currently trading at $43.21, which is considered slightly low relative to its 30-day fair value range of $42.94 to $52.20. From a valuation perspective, the stock is trading at a discount (Forward PE: 12.5) compared to its historical average (23.1). Remarkably, the market is currently pricing in an annual earnings decline of 18.5% 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 $40.91, while resistance sits at $48.30.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $90.00 (+108.3%). 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 $40.91, while resistance sits at $48.30.
Market Sentiment: The stock shows a mixed technical setup (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $90.00 (+108.3%). 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
SLIGHTLY LOW
Fair Price Range
$42.94 -
$52.20
Company Quality Score
60/100
(BUY)
Options IV Signal
55th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
77.7%
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
- NEUTRAL: Options fairly priced (IV 55th percentile)
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 108.3% below Wall St target ($90.00)
- CAUTION: Recommendation downgraded due to -9.8% 5-day decline
Fair Price Analysis
30-Day Fair Range
$42.94 -
$52.20
Current vs Fair Value
SLIGHTLY LOW
Expected Move (7 Days)
±$5.39
(12.5%)
Support & Resistance Levels
Support Level
$40.91
Resistance Level
$48.30
Current Trend
Strong Downtrend
Technical data as of
Apr 2, 2026
Fundamental Context
Forward P/E (Next Year Est.)
12.52
Wall Street Target
$90.00
(+108.3%)
Revenue Growth (YoY)
21.5%
Earnings Growth (YoY)
-76.4%
Profit Margin
2.5%
Valuation Discount vs History
-18.5% cheaper
PE vs Historical
12.5 vs 23.1
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-18.5%
(market-implied from PE analysis)
1-Year Target
$38.89
(-10%)
2-Year Target
$35.00
(-19%)
3-Year Target
$31.50
(-27%)
3-Yr Target (if PE normalizes)
(PE: 13→23)
$58.10
(+35%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.6, Growth: 55.4%)
$239.51
(+454%)
Base:
(SPY PE: 12.5, Growth: 55.4%)
$145.83
(+238%)
Bear:
(PE: 10.6, Growth: 55.4%)
$123.96
(+187%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (19x PE), but valuation improves significantly next year (13x PE) as earnings recover.
Trailing PE: 19.32 | Current EPS (TTM): $2.36
Bull Case
$73.31
(+60%)
Analyst growth 46.2%, PE expands to 21.3
Base Case
$66.65
(+46%)
Market implied 46.2%, PE stable at 19.3
Bear Case
$31.00
(-32%)
Severe decline -20.0%, PE contracts to 16.4
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 12.5 to 23.1
Stabilization Target:
$79.70
(+84.4%)
PE Expansion Potential:
+84.4%
Share & Embed Analysis
Last updated: April 02, 2026 7:03 PM ET
Data refreshes hourly during market hours. Next update: 8:03 PM
Data refreshes hourly during market hours. Next update: 8:03 PM
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Technical Signals Check
Is ROOT showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced ROOT Option Strategies
Professional options setups generated by AI based on today's ROOT price and gamma walls.
