Returns Breakdown
| Return On Tangible Assets | (0.14) | |
| Return On Capital Employed | (0.16) | |
| Return On Assets | (0.13) | |
| Return On Equity | (0.5) |
Estimating Root (USA Stocks:ROOT) price for December 2024.
 | By Gabriel Shpitalnik | Macroaxis Story |
High risk, high reward often defines the journey of investing in stocks like Root Inc. As we look towards December 2024, Root Inc. (NASDAQ: ROOT) presents a complex picture for investors. Despite its current 52-week high of 86.57, the stock's forecasted value of 38.37 suggests a significant potential downside, especially when coupled with a Price Action Indicator of -8.3. The company's financial health raises eyebrows, with expected earnings per share for the next year at a loss of 2.33. The insurance sector's volatility, reflected in Root's high beta of 2.534, further complicates the outlook. While analysts have a consensus of buy, with two strong buy recommendations, caution is advised given the short interest ratio of 7.05, indicating a substantial amount of skepticism in the market. For those considering a stake in Root, it's crucial to weigh these factors carefully against your risk tolerance and investment strategy. Currently, Root's income quality is more stable than it was last year. By 2024, the company's EV to Operating Cash Flow is expected to rise to 7.17, while the Free Cash Flow Yield might decrease to -0.30. This analysis aims to provide private investors with insights into Root's potential future value. We'll explore why this could be significant for those investing in Root.
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Vlad Skutelnik
Root Inc. has a beta of -0.5811, which suggests it moves inversely to the market. This means that when the market rises, Root is expected to underperform, and when the market falls, Root might outperform. Beta is a tool that helps investors gauge how a stock's price might react compared to the market. A negative beta indicates that Root's stock price tends to move in the opposite direction of the market. This characteristic can be useful for diversifying a portfolio, as it may reduce overall risk, but it might not significantly boost expected returns.
Main Takeaways
As we look ahead to December 2024, Root Inc. (NASDAQ: ROOT) presents a mixed bag of opportunities and challenges for investors. With a 52-week high of 86.57, the stock has shown potential for significant upward movement, yet the EPS estimate for next year indicates a loss of 2.33, suggesting ongoing financial hurdles. The company's Sortino Ratio of 0.1149 reflects a cautious approach to risk-adjusted returns, which may appeal to investors with a higher risk tolerance. Given these factors, potential investors should weigh the stock's historical volatility against its growth prospects in the competitive insurance sector.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Root Inc. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for Root
How important is Root's Liquidity
Root financial leverage refers to using borrowed capital as a funding source to finance Root Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Root financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Root's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Root's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Root's total debt and its cash.
Root Gross Profit
Root Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Root previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Root Gross Profit growth over the last 10 years. Please check Root's gross profit and other fundamental indicators for more details.
A Deeper look at Root
The newest price gain of Root Inc created some momentum for private investors as it was traded today as low as 63.12 and as high as 118.15 per share. The company executives may have good odds in positioning the company resources to exploit market volatility in December. The stock standard deviation of daily returns for 90 days investing horizon is currently 9.92. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Root partners.
Timing is everything, especially when it comes to investing.Root Inc. (NASDAQ: ROOT), a player in the property and casualty insurance sector, presents a mixed bag of potential as we look towards December 2024. With a 52-week high of 86.57 and a current market capitalization of 724.93 million, the stock has shown significant volatility. Despite a high probability of bankruptcy at 94.97%, the company's current ratio of 3.92X suggests it has a solid liquidity position to meet short-term obligations. However, with an EPS estimate of losses at 2.33 for next year, investors should weigh the risks carefully before making any decisions..
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Root Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.