Jim Cramer Weighs In on Root

Root, Inc. (NASDAQ:ROOT) is likely one of the shares Jim Cramer lately mentioned. Throughout the lightning spherical, a caller requested concerning the firm, and Cramer replied:

“I do know Root… And by the way in which, Lemonade is the one which I’m taking a look at for, in relation to insurance coverage. Lemonade is your play. And by the way in which, I feel Lemonade is disrupting the business to the purpose the place we’re seeing decrease charges, presumably. I do know that as a result of we’re seeing a variety of insurance coverage corporations discuss decrease charges, together with Berkshire Hathaway.”

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Root, Inc. (NASDAQ:ROOT) supplies auto and renters insurance coverage by means of a direct-to-consumer mannequin, primarily by means of its cellular app and web site. The corporate reported its Q2 2025 outcomes on August 6. It posted an EPS of $1.29, outperforming estimates by $0.61. The income of $383 million beat estimates by $44.55 million and was up 32.4% year-over-year. The corporate’s CEO and Co-Founder, Alexander Edward Timm, made the next feedback on the convention name:

“These outcomes are the end result of constant execution of our technique, permitting us to create nice experiences and nice costs for our clients. Past monetary outcomes, we proceed to advance our technique, releasing our next-gen pricing mannequin, persevering with to quickly develop our partnerships channel and making significant progress on our path to turning into nationwide. Constructing AI and Machine Studying to raised worth insurance coverage is the bedrock of our technique. Our new pricing mannequin considerably improves our danger choice, growing buyer lifetime values by 20% on common.

Whereas we acknowledge the potential of ROOT as an funding, we imagine sure AI shares provide better upside potential and carry much less draw back danger. For those who’re in search of a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.

Disclosure: None. This text is initially printed at Insider Monkey.