Oscar Health, Inc. (OSCR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Oscar Health, Inc. (OSCR) Healthcare & Pipeline Overview

Oscar Health, Inc., founded in 2012, provides health insurance products and services in the United States, including Individual & Family, Small Group, and Medicare Advantage plans. The company differentiates itself through its technology-driven +Oscar platform, designed to enhance member engagement and streamline healthcare processes, operating in a competitive healthcare landscape.

What Is the Investment Thesis for OSCR?

The company's focus on leveraging technology to improve member engagement and streamline healthcare processes positions it favorably in a rapidly evolving industry. With a market capitalization of $8.45B, Oscar Health is navigating a competitive landscape. Key to its success will be continued growth in membership across its Individual & Family, Small Group, and Medicare Advantage plans. The +Oscar platform's ability to drive efficiency and improve health outcomes will be a critical value driver. However, the company's negative profit margin of -0.3% necessitates careful monitoring of its path to profitability. The high beta of 1.93 indicates significant volatility, requiring investors to consider the inherent risks associated with the stock.

Based on FMP financials and quantitative analysis

OSCR Key Highlights

Market Cap of $8.45B reflects investor valuation of Oscar Health's growth potential in the health insurance market.

• Gross Margin of 17.4% indicates the profitability of Oscar Health's core insurance operations after accounting for direct costs.
• Profit Margin of -0.3% highlights the company's current challenges in achieving overall profitability, requiring focus on cost management and revenue growth.
• The company offers Individual & Family, Small Group, and Medicare Advantage plans, catering to diverse needs across different demographics.
• Oscar Health's +Oscar platform differentiates the company through its technology-driven system designed to connect providers, payors, and members, facilitating seamless communication and personalized care.

Who Are OSCR's Competitors?

OSCR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are OSCR's Key Strengths?

Innovative technology platform (+Oscar).

• Strong brand recognition among tech-savvy consumers.
• Focus on member engagement and personalized care.
• Growing market presence in select geographic areas.

What Are OSCR's Weaknesses?

Negative profit margin.

• High beta indicates significant stock volatility.
• Limited geographic reach compared to larger competitors.
• Reliance on regulatory approvals and market conditions.

What Could Drive OSCR Stock Higher?

Continued growth in membership across Individual & Family, Small Group, and Medicare Advantage plans.

• Expansion of the +Oscar platform's capabilities and features.
• Potential partnerships with healthcare providers to expand network and improve care coordination.
• Regulatory approvals for new plan offerings and geographic expansion.
• Positive impact of data analytics on personalized care and health outcomes.

What Are the Key Risks for OSCR?

Negative return on equity (-3.3%) — the business is not currently generating profit on shareholder capital.

• Insider selling — insiders were net sellers of roughly $101.0M recently.
• Intense competition from established health insurance companies.
• Increasing regulatory scrutiny and compliance requirements.
• Rising healthcare costs and potential for adverse selection.
• Economic downturn and potential impact on membership growth.
• Cybersecurity threats and data breaches.

What Are the Growth Opportunities for OSCR?

• Expansion of Medicare Advantage Plans: Oscar Health has the opportunity to expand its Medicare Advantage offerings to new geographic markets. The Medicare Advantage market is projected to continue growing as the senior population increases. By offering competitive plans with attractive benefits and leveraging its technology platform to enhance member experience, Oscar Health can capture a larger share of this market. Successful expansion requires navigating regulatory requirements and effectively managing healthcare costs.
• Strategic Partnerships with Healthcare Providers: Forming strategic partnerships with healthcare providers can drive member acquisition and improve care coordination. By integrating its technology platform with provider systems, Oscar Health can facilitate seamless data exchange and improve communication between providers and members. This can lead to better health outcomes and increased member satisfaction. Successful partnerships require aligning incentives and establishing clear protocols for data sharing and care coordination.
• Enhancement of the +Oscar Platform: Continued investment in and enhancement of the +Oscar platform can drive efficiency and improve member engagement. By adding new features and functionalities, such as telehealth services, remote monitoring, and personalized health recommendations, Oscar Health can differentiate itself from competitors and attract new members. The platform can also be leveraged to improve risk management and reduce healthcare costs. Ongoing development and maintenance of the platform are essential to maintaining its competitive advantage.
• Geographic Expansion into Underserved Markets: Oscar Health can pursue geographic expansion into underserved markets where there is a lack of access to quality healthcare. By offering affordable and accessible health insurance plans, Oscar Health can address unmet needs and improve health outcomes in these communities. This requires careful market analysis and a tailored approach to plan design and delivery. Building trust and establishing strong relationships with local stakeholders are critical to success.
• Leveraging Data Analytics for Personalized Care: Oscar Health can leverage data analytics to personalize care and improve health outcomes. By analyzing member data, Oscar Health can identify individuals at high risk for chronic conditions and proactively intervene to prevent disease progression. Personalized care plans can be developed based on individual needs and preferences, leading to better adherence and improved health outcomes. Ethical considerations and data privacy must be carefully addressed when using data analytics for personalized care.

What Are OSCR's Competitive Advantages?

• Technology-driven platform (+Oscar) provides a competitive advantage in member engagement and care coordination.
• Brand recognition as an innovative and user-friendly health insurance provider.
• Data analytics capabilities enable personalized care and improved health outcomes.
• Established relationships with healthcare providers and payors.

What Does OSCR Do?

Oscar Health, Inc., established in 2012, emerged with a vision to revolutionize the healthcare insurance landscape through technology. Recognizing the complexities and inefficiencies within the traditional healthcare system, the founders sought to create a user-friendly, transparent, and accessible insurance experience. Initially known as Mulberry Health Inc., the company rebranded as Oscar Health, Inc. in January 2021, solidifying its commitment to innovation. Oscar Health offers a variety of health insurance plans, including Individual & Family, Small Group, and Medicare Advantage, catering to diverse needs across different demographics. A key differentiator is its +Oscar platform, a technology-driven system designed to connect providers, payors, and members, facilitating seamless communication and personalized care. This platform aims to improve member engagement, streamline administrative processes, and ultimately drive better health outcomes. Headquartered in New York City, Oscar Health operates across multiple states in the United States, focusing on select markets with growth potential. The company also provides reinsurance products, further diversifying its revenue streams. Oscar Health competes with established players in the health insurance industry, emphasizing its technology-centric approach and member-focused services to gain market share.

What Products and Services Does OSCR Offer?

• Provides Individual & Family health insurance plans.
• Offers Small Group health insurance plans for businesses.
• Administers Medicare Advantage plans for eligible individuals.
• Operates the +Oscar technology platform to connect providers, payors, and members.
• Offers reinsurance products to other insurance companies.
• Focuses on improving member engagement through technology-driven solutions.
• Aims to streamline healthcare processes and improve health outcomes.

How Does OSCR Make Money?

• Generates revenue through premiums from health insurance plans.
• Earns fees from reinsurance products.
• Leverages technology to reduce administrative costs and improve efficiency.
• Focuses on member acquisition and retention through competitive plan offerings and personalized services.

What Industry Does OSCR Operate In?

Oscar Health operates within the dynamic and highly competitive healthcare insurance industry. The industry is characterized by increasing regulatory scrutiny, evolving consumer expectations, and technological advancements. Market trends include a growing emphasis on value-based care, personalized medicine, and digital health solutions. Oscar Health's technology-driven approach aligns with these trends, positioning it to capitalize on the shift towards more efficient and patient-centric healthcare. Competitors such as Alignment Healthcare, Inc. (ALHC) also focus on specific segments like Medicare Advantage, while others like Arcellx, Inc. (ACLX), Immunovant, Inc. (IMVT), Akero Therapeutics, Inc. (AKRO), and NewAmsterdam Pharma Company N.V. (NAMS) operate in different areas of the healthcare sector.

Who Are OSCR's Key Customers?

• Individuals and families seeking health insurance coverage.
• Small businesses looking to provide health benefits to their employees.
• Individuals eligible for Medicare Advantage plans.
• Healthcare providers and payors utilizing the +Oscar platform.
• Other insurance companies seeking reinsurance products.

Over the past six months, Oscar Health, Inc. insiders filed 30 SEC Form 4 transactions — 22 sales and 8 purchases. On net that is roughly 2.6M shares disposed (about $101.0M), a signal worth weighing alongside the fundamentals.

Quarterly Financial Performance: Oscar Health, Inc.

Revenue for Oscar Health, Inc. came in at $4.88B during Q2 FY2026, a 5.0% improvement versus the preceding quarter. The company recorded net income of $361.8M, with diluted EPS of $1.09. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Healthcare company. Across the four most recent quarters, OSCR averaged $0.34 in diluted EPS.

OSCR Valuation & Market Position

With a $8.45B market cap, Oscar Health, Inc. sits in the mid-cap segment of the market. Analyst price targets span from $16.00 to $39.00, with a consensus of $27.25. At the current price of $32.58, that implies roughly 16% downside from the consensus target. Relative to its peer group, OSCR's quantitative score of 95/100 is above the peer average of 66/100.

Return on equity for Oscar Health, Inc. stands at -3.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -0.4%, showing how much profit it generates from its asset base. Its free cash flow yield is 34.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.09 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -0.4%, the inverse of the P/E and a quick read on earnings relative to price.

Oscar Health, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.89 places it in the grey zone, a middle ground that warrants monitoring.

Oscar Health, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 25.3% above estimates on average.

Company Profile

Oscar Health, Inc. operates in the Medical - Healthcare Plans industry within the Healthcare sector. It is headquartered in New York City, US. The company is led by CEO Mark Thomas Bertolini. OSCR has traded publicly since 2021.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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