Root, Inc. (ROOT): A Bull Case Theory for Growth and Moat Creation

Root, Inc. (ROOT) is a US-based insurance company that provides automobile and renters insurance products. The company's core idea is to use real driving data to price insurance accurately, rather than relying on estimates. ROOT's data-driven pricing model attracts safer customers, lowering losses over time. The company's revenue rose 21% to $383 million in Q2, and its loss ratio improved to 60%, outperforming peers. Trading at 1x sales, the stock is undervalued and has potential for long-term upside.