Why These 15 Financial Services Stocks Are Surging In 2025

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3. Root Inc (NASDAQ:ROOT)

Number of Hedge Fund Holders In Q4 2024: 16

Root Inc (NASDAQ:ROOT) is a technology-driven insurance company that offers automobile and renters insurance products in the United States, leveraging data science and mobile telematics to personalize pricing and risk assessment.

The main catalyst behind ROOT’s sharp rise in 2025 has been its exceptional revenue growth and a series of earnings surprises. In its most recent quarter, Root reported revenue of $326.7 million, which beat estimates, and posted net income of $22.1 million, far surpassing analyst expectations and continuing a trend of strong performance.

This solid financial performance has led to a 28% jump in the stock price in March alone, and a 187% increase over the past year, as investors have grown increasingly confident in the company’s ability to outpace industry growth.

The consensus price target of $112.67 implies 19.33% downside.

ROOT stock is up 92.41% year-to-date.

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