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A SPECIAL WELCOME GIFT FROM ZACKS.COM Zacks' 7 Strongest Buys for September, 2026 See our "best of the best" short-term stocks. Hand-picked from 220 new Strong Buys, they could be the most profitable stocks you own over the next 90 days. Recent picks have climbed as much as +97.3% within 30 days. Our new recommendations may soar just as high.

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Primed to grow right now with long-term potential gains of 2X and more.

Primed to grow right now with long-term potential gains of 2X and more.

SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.

SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.

The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.

The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.

Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.

Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.

Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.

Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.

Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.

Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.

Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.

Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.

Space ETFs offer exposure to a booming space economy, helping investors capture long-term growth while mitigating risks tied to individual companies.

Space ETFs offer exposure to a booming space economy, helping investors capture long-term growth while mitigating risks tied to individual companies.

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Featured Zacks Rank Stocks Learn to Profit from the Zacks Rank

#1 Rank After transitioning from a crypto miner to an AI company, things are looking good.

#5 Rank Tobacco stocks have had a bit of a resurgence with the introduction of new products but analysts are starting to pump the b

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers Zacks #1 Rank Top Movers for Value Growth Momentum VGM Income Company Symbol Price %Chg Motorsport... MSGM 4.40 +9.45% EuroDry EDRY 55.50 +6.63% TAL Educati... TAL 12.39 +3.34% Polaris PII 62.90 +2.96% Abercrombie... ANF 147.78 +2.95% Zacks #1 Rank Top Movers7/16 The Zacks #1 Rank List is the best place to start your stock search each morning. It's made up of the top 5% of stocks with the most potential. Each weekday, you can quickly see the Zacks #1 Rank Top Movers from Value to Growth, Momentum and Income, even VGM Score.

Go to Zacks Rank #1 Top Movers

Full Zacks #1 Rank List8/16 You can see the full Zacks #1 Rank List or narrow it down to Zacks #1 Rank Stocks with a Value, Growth, Momentum or Income Style Score of A or B. Plus, you can see the Zacks #1 Rank Stocks with a VGM of A or B. You can also sort the list with criteria you choose, view Additions and Deletions by day, and Performance.

Go to the Zacks #1 Rank List

Zacks #1 Rank Additions Company (Symbol) Research Caterpillar (CAT) Analyst Report Dell Technologies (DELL) Analyst Report Robinhood Markets (HOOD) Analyst Report MongoDB (MDB) Analyst Report Aurora Cannabis (ACB) Snapshot Report Investment Ideas Earnings Analysis More Analysis Reported Earnings Surprises View All Positive Negative Symbol Time Expected Reported %Surprise KNOP 16:24 -0.03 0.10 +433.33 DLTH 05:49 -0.05 0.06 +220.00 PL 16:08 -0.02 0.02 +200.00 EGAN 16:19 0.03 0.08 +166.67 AOUT 16:15 -0.24 0.03 +112.50 EPS Positive Surprises for Sep 04, 2026

Symbol Time Expected Reported %Surprise CURV 16:06 -0.03 -0.04 -33.33 VBNK 07:04 0.34 0.27 -20.59 LE 06:46 0.10 0.09 -10.00 CPB 07:15 0.40 0.39 -2.50 EPS Negative Surprises for Sep 04, 2026

Upcoming Earnings ESP View More Symbol ESP Most Accurate Estimate Consensus Estimate AVO 21.74% 0.14 0.12 LMNR 5.26% 0.20 0.19 INNV 5.88% 0.09 0.09 Featured Stock Picks

Best Airline Stocks to Buy Now September 2026 The airline industry covers a wide range of business models and opportunities. See our picks for the Best Airline Stocks to buy now.

Best Crypto Stocks to Buy for September 2026 Here are our picks for the best publicly traded companies in the cryptocurrency business.

Best Pharmaceutical Stocks to Buy for September 2026 The pharmaceutical industry continues to grow thanks to an aging population and rising demand for new treatments. Which pharma stocks are best?

Best Biotech Stocks to Buy for September 2026 Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.

Best Gold Stocks to Buy for September 2026 Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, September 4:

Banco Macro S.A. (BMA - Free Report) : This banking products and services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 60.6% over the last 60 days.

Banco Macro has a PEG ratio of 0.34 compared with 0.85 for the industry. The company possesses a Growth Score of B.

ATI Inc. (ATI - Free Report) : This specialty materials and components companycarries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.3% over the last 60 days.

ATI has a PEG ratio of 1.30 compared with 1.74 for the industry. The company possesses a Growth Score of B.

Oscar Health, Inc. (OSCR - Free Report) : This healthcare technology company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 227.7% over the last 60 days.

Oscar Health has a PEG ratio of 0.62 compared with 0.95 for the industry. The company possesses a Growth Score of B.

See the full list of top ranked stocks here.

Learn more about the Growth score and how it is calculated here.

Key Takeaways Oscar Health shares have surged 109% YTD, outperforming its industry, sector and S&P 500 composite.Membership rose 46% to 2.96 million, while second-quarter revenues jumped 70% to $4.88 billion.OSCR plans more than 150 new metro areas by 2027 and targets a 20% revenue CAGR and 5% operating margin. Shares of Oscar Health (OSCR - Free Report) have gained 108.5% year to date, outperforming the industry, its sector, as well as the Zacks S&P 500 composite in the same time frame. OSCR shares are trading at a discount to their 52-week high.

The surge likely reflects a major profitability turnaround at Oscar Health. Strong ACA membership growth, higher revenue, improved medical-loss ratios, and better cost management significantly boosted earnings. Management’s substantial increase in 2026 profit guidance further strengthened investor confidence, leading to a major rerating of the stock.

Oscar is a leading healthcare technology company built around a full-stack technology platform. It is well-positioned for sustained growth as it strengthens its presence in the expanding U.S. individual health insurance market.

OSCR vs Industry, Sector, S&P 500 YTD
Image Source: Zacks Investment Research

Oscar’s peer, Molina Healthcare (MOH - Free Report) , a government-focused managed-care insurer with Marketplace and Medicaid exposure, has gained 51.1% year to date, while another peer, Centene (CNC - Free Report) , a major managed-care insurer with substantial ACA Marketplace exposure, has gained 68.5% in the same time frame.

OSCR Shares Are ExpensiveThe stock is overvalued compared with its industry. It is currently trading at a price-to-book multiple of 4.5, higher than the industry average of 2.67 and the median of 2.64 over five years.  It has a Value Score of B.
 

Image Source: Zacks Investment Research

 OSCR is expensive compared to Molina Healthcare and Centene.

The Case for OSCR StockStructural shifts in employment—including the rise of gig work, part-time jobs, self-employment and early retirement—are increasing demand for portable health insurance outside traditional employer-sponsored plans. Oscar Health is well-positioned to capitalize on this trend through its differentiated technology platform, which integrates plan design, member engagement, care navigation, claims processing and provider management. Its Individual Coverage Health Reimbursement Arrangements, Lucie Health marketplace and Trove Group also create growth opportunities beyond the core insurance business.

Strong membership growth reflects rising acceptance of Oscar’s offerings. Membership reached 2.96 million as of June 30, 2026, up 46% year over year. Second-quarter revenues jumped 70% to $4.88 billion, supported by membership gains and premium-rate increases. Oscar expects 2026 revenues of $18.7-$19.0 billion, demonstrating its growing scale in the individual insurance market.

The company plans to enter more than 150 additional metropolitan statistical areas by 2027. Disciplined pricing, consumer-focused products and a scalable technology platform should support continued expansion in the Affordable Care Act marketplace. Oscar’s strategy also aligns with major healthcare trends, including rising costs, consumerization, digitization and greater personalization. Its early focus on these areas could provide a sustainable competitive advantage as the healthcare system evolves.

Management targets a 20% revenue CAGR through 2027 and a 5% operating margin next year. Technology and AI initiatives, fixed-cost leverage and lower risk-adjustment expenses as a percentage of premiums are already helping improve the expense ratio.

Oscar’s financial position has also strengthened. As of June 30, 2026, it held approximately $4.08 billion in cash and cash equivalents and $6.08 billion in investments, compared with long-term debt of roughly $432 million. This liquidity provides ample flexibility to meet regulatory capital requirements, fund technology investments and support continued membership growth.

Optimistic Analyst SentimentThe Zacks Consensus Estimate for 2026 and 2027 revenues indicates a 60.8% and 9.6% year-over-year increase, respectively. The same for 2026 and 2027 earnings implies a 191.2% and 15.8% year-over-year increase, respectively.

The expected earnings growth rate is pegged at 31.5%, better than the industry average of 12.8%. The company has a Growth Score of A.

The consensus estimate for 2026 and 2027 earnings has moved 144.4% and 31.6% north, respectively, in the past 30 days.

Image Source: Zacks Investment Research

The consensus estimates for 2026 and 2027 earnings of Molina Healthcare, as well as Centene, witnessed upward movement in the past 30 days.

How to Play OSCR SharesOscar’s expanding membership, improving cost structure, scalable technology platform, consistent underwriting discipline and solid balance sheet will help it convert its strong results into durable earnings. Its VGM Score of A instills confidence.

Optimistic analyst sentiment, price appreciation and discounted valuation make this Zacks Rank #2 (Buy) stock a strong contender for addition to one’s portfolio. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, August 28:

Schneider National, Inc. (SNDR - Free Report) : This provider of truckload, intermodal, and logistics services a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.6% over the last 60 days.

Schneider National has a PEG ratio of 0.80 compared with 1.50 for the industry. The company possesses a Growth Score of B.

National Energy Services Reunited Corp. (NESR - Free Report) : This oilfield services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.3% over the last 60 days.

NESR has a PEG ratio of 0.32 compared with 0.53 for the industry. The company possesses a Growth Score of A.

Oscar Health, Inc. (OSCR - Free Report) : This healthcare technology company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 227.7% over the last 60 days.

Oscar Health has a PEG ratio of 0.64 compared with 1.00 for the industry. The company possesses a Growth Score of A.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Learn more about the Growth score and how it is calculated here.

Oscar Health (OSCR -0.86%) has incorporated AI to enhance operations.

On August 13, 2026, Oscar Health Inc (OSCR) shares rose 4.0% to a current price of $30.78, amidst a 52-week range of $10.69 to $33.10. This recent uptick follow

Oscar Health, Inc. (OSCR) Q2 2026 Earnings Call Transcript

For the quarter ended June 2026, Oscar Health, Inc. (OSCR - Free Report) reported revenue of $4.88 billion, up 70.4% over the same period last year. EPS came in at $1.10, compared to -$0.89 in the year-ago quarter.

The reported revenue represents a surprise of -0.92% over the Zacks Consensus Estimate of $4.93 billion. With the consensus EPS estimate being $0.43, the EPS surprise was +155.81%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Oscar Health performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Membership by Offering- Individual and Small Group: 2.96 million versus the two-analyst average estimate of 2.98 million.Medical loss ratio: 79.2% versus 80.4% estimated by two analysts on average.Revenue- Premium: $4.79 billion versus the two-analyst average estimate of $4.86 billion.Revenue- Administrative services revenue (Other revenues): $6.1 million versus the two-analyst average estimate of $6.91 million.Revenue- Investment income: $84.79 million compared to the $58.35 million average estimate based on two analysts.View all Key Company Metrics for Oscar Health here>>>

Shares of Oscar Health have returned -2.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

NEW YORK--(BUSINESS WIRE)--Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR) announced today its financial results for the second quarter ended June 30, 2026 and updates to its full year 2026 guidance.

“Oscar delivered record profitability in the first half of the year and we are raising our full-year 2026 guidance,” said Mark Bertolini, CEO of Oscar Health. “Our superior operating performance and execution against the fundamentals of our strategy are accelerating the individual market. More people are moving between full- and part-time jobs, gig work, and retirement – a shift AI will accelerate. A durable individual market gives them greater choice and will power the future of American healthcare. Oscar’s consumer products, disciplined pricing, and scalable technology platform will capture this opportunity and position us for long-term profitable growth.”

Second Quarter 2026 Financial Highlights

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except percentages)

2026

2025

2026

2025

Total revenue

$4,880,220

$2,863,945

$9,527,414

$5,910,208

Medical loss ratio (“MLR”)

79.2%

91.1%

75.0%

83.0%

Selling, general, and administrative (“SG&A”) expense ratio

14.2%

18.7%

14.7%

17.2%

Earnings (loss) from operations

$388,635

$(230,483)

$1,092,720

$66,640

Net income (loss) attributable to Oscar Health, Inc.

$361,808

$(228,361)

$1,040,804

$46,910

Adjusted EBITDA (1)

$415,349

$(199,404)

$1,142,421

$129,424

(1) Adjusted EBITDA is a non-GAAP measure. See “Key Operating and Non-GAAP Financial Metrics - Adjusted EBITDA” in this release for a reconciliation to net income, the most directly comparable GAAP measure, and for information regarding Oscar’s use of Adjusted EBITDA.

As of June 30,

Effectuated Membership by Offering

2026

2025

Individual and Small Group (1)

2,963,002

2,017,058

Cigna+Oscar (2)

—

10,090

Total Members (3)

2,963,002

2,027,148

(1) Membership includes members enrolled through an Individual Coverage Health Reimbursement Arrangement (“ICHRA”). 2025 membership includes small group members. The Company no longer offers small group plans effective December 15, 2024.

(2) Represents total membership for our former co-branded partnership with Cigna. We did not renew the Cigna+Oscar Small Group arrangement after its initial term ended on December 31, 2024.

(3) Represents effectuated members. Effectuated members are those who are actively enrolled in one of our plans and whose required premium payments have either been made or are within the payment grace period. A member covered under more than one of our health plans counts as a single member for the purposes of this metric.

2026 Financial Guidance Summary

Prior Full Year 2026 Outlook

Updated Full Year 2026 Outlook

(in thousands, except percentages)

Low

High

Low

High

Total Revenue (1)

$18.7 billion

$19.0 billion

$18.7 billion

$19.0 billion

Medical Loss Ratio (2)

82.4%

83.4%

81.5%

82.5%

SG&A Expense Ratio (3)

15.8%

16.3%

15.6%

16.1%

Earnings from Operations (4)

$250 million

$450 million

$500 million

$700 million

(1) Total revenue includes premium revenue (net of risk adjustment transfers), investment income, and other revenue. We believe total revenue is an important metric to assess the growth of our business, as well as the earnings potential of our investment portfolio.

(2) Medical loss ratio (MLR) is a metric used to calculate medical expenses as a percentage of net premiums before ceded quota share reinsurance. We believe MLR is an important metric to demonstrate the ratio of our costs to pay for the healthcare of our members to the net premiums before ceded quota share reinsurance.

(3) Selling, general, and administrative (SG&A) expense ratio is calculated as selling, general and administrative expenses as a percentage of total revenue (net of risk adjustment transfers). We believe the SG&A expense ratio is useful to evaluate our ability to manage our overall selling, general, and administrative cost base.

(4) Earnings from operations is the Company's total revenue less Total operating expenses. We believe earnings from operations is an important primary metric for assessing operating performance.

Second Quarter 2026 Key Metrics and Non-GAAP Financial Metrics

Total revenue was approximately $4.9 billion for the second quarter of 2026 compared to $2.9 billion for the second quarter of 2025. The increase was driven by higher membership and rate increases, partially offset by an increase in the net risk adjustment transfer accrual. The medical loss ratio was 79.2% for the second quarter of 2026 compared to 91.1% for the second quarter of 2025, which included the entire first half impact of 2025 risk adjustment true-up driven by higher average market morbidity. The decrease was primarily driven by our disciplined pricing strategy and $164 million of favorable prior period reserve development. The SG&A expense ratio was 14.2% for the second quarter of 2026 compared to 18.7% for the second quarter of 2025. The decrease was primarily due to disciplined expense management, greater fixed cost leverage, and the impact of lower risk adjustment as a percentage of premium. Earnings from operations were $388.6 million for the second quarter of 2026 compared to a loss from operations of $230.5 million for the second quarter of 2025. The significant increase reflects strong operating performance driven primarily by improved underwriting performance and favorable prior period development. Net income attributable to Oscar Health, Inc. was $361.8 million, or $1.10 of diluted earnings per share, for the second quarter of 2026 compared to Net loss attributable to Oscar Health, Inc. of $228.4 million, or $(0.89) of diluted earnings per share, for the second quarter of 2025. Adjusted EBITDA was $415.3 million for the second quarter of 2026 compared to an Adjusted EBITDA loss of $199.4 million for the second quarter of 2025. Quarterly Conference Call Details

Oscar will host a conference call to discuss its financial results today, August 6, 2026, at 8:00 a.m. (ET). Investors and other interested parties are invited to listen to the conference call by dialing 1-855-761-5600 and entering the following conference ID: 7768132. A live audio webcast will also be available via the Investor Relations page of Oscar’s website at ir.hioscar.com. A replay of the webcast will be available for on-demand listening shortly after the completion of the call, at the same web link, and will remain available for approximately 90 days.

Non-GAAP Financial Information

This release presents Adjusted EBITDA, a non-GAAP financial metric, which is provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). A reconciliation of historical non-GAAP financial information to the most directly comparable GAAP financial measure is provided in the accompanying tables found at the end of this release. For more information regarding Adjusted EBITDA, please see “Key Operating and Non-GAAP Financial Metrics” below.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained herein are forward-looking statements. These statements include, but are not limited to, statements about our financial outlook and estimates, including Total revenue, Medical loss ratio, SG&A expense ratio, Earnings (loss) from operations, and other financial performance metrics, and the related underlying assumptions, our business and financial prospects, including management’s plans and objectives for future operations, expectations and business strategy, such as our 2026 margins and profitability, and industry and market dynamics and expected trends. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “forecasts,” “predicts,” “potential,” or “continues” or the negative of these terms or other similar expressions. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict and generally beyond our control.

Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, there are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: our ability to execute our strategy and manage our growth effectively (including our ability to successfully integrate strategic acquisitions); our ability to retain and expand our member base; our ability to accurately estimate our incurred medical expenses or overall market morbidity, or effectively manage our medical costs or related administrative costs; unanticipated results of, or changes to, risk adjustment programs or our estimates thereof; evolving federal or state laws or regulations (including any changes in the interpretation or enforcement of existing laws and regulations), including changes with respect to the Patient Protection and Affordable Care Act (“ACA”) and any regulations enacted thereunder, the expiration of the enhanced Advanced Premium Tax Credits (“eAPTCs”), the implementation of new program integrity rules, including pursuant to the Notice of Benefit and Payment Parameters (“NBPP”) for policy year 2027, the potential funding of a cost-sharing reduction (“CSR”) program, or other government actions, such as the imposition of tariffs; our ability to achieve or maintain profitability in the future; our ability to arrange for the delivery of quality care and maintain good relations with brokers and the physicians, hospitals, and other providers within and outside our provider networks; our ability to comply with ongoing, complex and evolving regulatory requirements, including capital reserve and surplus requirements and applicable performance standards; changes or developments in the regulation of health insurance markets in the United States; our, or any of our vendors’, ability to comply with laws, regulations, and standards related to the handling of information about individuals or applicable consumer protection laws, including as a result of our participation in government-sponsored programs; the ability of our health insurance and Health Maintenance Organization (“HMO”) subsidiaries (collectively, “Health Insurance Subsidiaries”) to make payments of dividends or distributions to us, including to fund our business strategy; our ability to utilize quota share reinsurance to meet our capital and surplus requirements and protect against downside risk on medical claims; adverse market conditions resulting in our investment portfolio suffering losses or reducing our ability to meet our financing needs; unfavorable or otherwise costly outcomes of lawsuits, audits, investigations, and other third party claims that may arise from the extensive laws and regulations to which we are subject, such as fraud, waste and abuse laws; incurrence of data security breaches of our or our partners’ information and technology systems; heightened competition in the markets in which we participate; our ability to attract and retain qualified personnel; uncertainties associated with our utilization of certain artificial intelligence (“AI”) and machine learning models; our ability to detect and prevent material weaknesses or significant control deficiencies in our internal controls over financial reporting or other failure to maintain an effective system of internal controls; adverse publicity or other adverse consequences related to our dual class structure or “controlled company” status; and the other factors set forth under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”), and our other filings with the SEC.

You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Any forward-looking statement speaks only as of the date as of which it is made, and, except as otherwise required by law, we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for us to predict which will arise.

About Oscar Health

Oscar Health, Inc. is a leading healthcare technology company built on a full-stack platform and a relentless focus on member experience. Oscar Health helps make high-quality and affordable care more accessible for millions of people through Oscar’s Individual & Family plans and ICHRA solutions, Lucie Health Marketplace, and Trove Group. Consumers benefit from better choice, deeper engagement, and connection to high-value clinical care.

Oscar Health, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

  Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except per share amounts)

2026

2025

2026

2025

Revenue

Premium

$

4,789,331

$

2,803,444

$

9,370,193

$

5,799,265

Investment income

84,794

54,004

145,408

100,116

Other revenues

6,095

6,497

11,813

10,827

Total revenue

4,880,220

2,863,945

9,527,414

5,910,208

Operating Expenses

Medical

3,794,445

2,552,973

7,024,302

4,812,624

Selling, general, and administrative

691,080

534,485

1,397,314

1,017,244

Depreciation and amortization

6,060

6,970

13,078

13,700

Total operating expenses

4,491,585

3,094,428

8,434,694

5,843,568

Earnings (loss) from operations

388,635

(230,483

)

1,092,720

66,640

Interest expense

4,709

5,847

10,092

11,841

Other expenses (income)

915

(2,794

)

844

124

Earnings (loss) before income taxes

383,011

(233,536

)

1,081,784

54,675

Income tax expense (benefit)

21,183

(5,045

)

40,933

7,660

Net income (loss)

361,828

(228,491

)

1,040,851

47,015

Less: Net income (loss) attributable to noncontrolling interests

20

(130

)

47

105

Net income (loss) attributable to Oscar Health, Inc.

$

361,808

$

(228,361

)

$

1,040,804

$

46,910

Earnings (loss) per Share

Basic

$

1.20

$

(0.89

)

$

3.47

$

0.19

Diluted

$

1.10

$

(0.89

)

$

3.16

$

0.17

Weighted Average Common Shares Outstanding

Basic

302,220

255,531

300,197

253,417

Diluted

333,432

255,531

331,292

270,244

Oscar Health, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

  (in thousands, except per share amounts)

June 30, 2026

December 31, 2025

Assets

Current Assets:

Cash and cash equivalents

$

4,075,612

$

2,774,151

Short-term investments

4,479,906

1,216,461

Accounts receivable (net of allowance for credit losses of $55,298 and $7,226)

380,057

362,682

Reinsurance recoverable

196,544

99,750

Receivables from CMS

180,750

136,029

Other current assets

60,317

24,331

Total current assets

9,373,186

4,613,404

Long-term investments

1,600,770

1,470,987

Property, equipment, and capitalized software, net

101,494

88,350

Restricted deposits

29,178

32,951

Other assets

122,134

119,719

Total assets

$

11,226,762

$

6,325,411

Liabilities and Stockholders' Equity

Current Liabilities:

Payables to CMS

$

6,095,289

$

2,730,095

Benefits payable

1,898,435

1,455,385

Accounts payable and other liabilities

525,709

507,325

Unearned premiums

167,505

166,203

Reinsurance payable

2,564

3,579

Total current liabilities

8,689,502

4,862,587

Long-term debt

431,629

430,095

Other liabilities

50,466

51,994

Total liabilities

9,171,597

5,344,676

Commitments and contingencies

Stockholders' Equity

Class A common stock ($0.00001 par value; 825,000 thousand shares authorized, 273,410 thousand and 261,851 thousand shares outstanding as of June 30, 2026 and December 31, 2025, respectively)

3

3

Class B common stock ($0.00001 par value; 82,500 thousand shares authorized, 35,224 thousand and 35,838 thousand shares outstanding as of June 30, 2026 and December 31, 2025, respectively)

—

—

Treasury stock (315 thousand shares as of June 30, 2026 and December 31, 2025)

(2,923

)

(2,923

)

Additional paid-in capital

4,316,831

4,256,972

Accumulated deficit

(2,253,630

)

(3,294,434

)

Accumulated other comprehensive income (loss)

(8,250

)

18,030

Total Oscar Health, Inc. stockholders' equity

2,052,031

977,648

Noncontrolling interests

3,134

3,087

Total stockholders' equity

2,055,165

980,735

Total liabilities and stockholders' equity

$

11,226,762

$

6,325,411

Oscar Health, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

  Six Months Ended June 30,

(in thousands)

2026

2025

Cash Flows from Operating Activities:

Net income

$

1,040,851

$

47,015

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Change in provision for credit losses

48,072

(23,950

)

Stock-based compensation expense

36,623

49,084

Depreciation and amortization expense

13,049

13,700

Amortization of debt issuance costs

2,163

389

Net accretion of investments

(15,285

)

(15,667

)

Deferred taxes

(7,731

)

—

Net realized gain on sale of financial instruments

(1,732

)

(131

)

Changes in assets and liabilities:

(Increase) / decrease in:

Reinsurance recoverable

(96,794

)

98,839

Accounts receivable

(65,448

)

(51,666

)

Receivables from CMS

(44,721

)

(95,982

)

Other assets

(26,660

)

(26,512

)

Increase / (decrease) in:

Payables to CMS

3,365,194

1,127,430

Benefits payable

443,050

194,902

Accounts payable and other liabilities

20,408

103,024

Unearned premiums

1,302

(4,900

)

Reinsurance payable

(1,016

)

(27,966

)

Net cash provided by operating activities

4,711,325

1,387,609

Cash Flows from Investing Activities:

Sale of investments

983,943

15,761

Maturity and paydowns of investments

553,943

267,419

Change in restricted deposits

606

526

Purchase of investments

(4,942,801

)

(607,838

)

Purchase of property, equipment, and capitalized software

(20,556

)

(18,303

)

Net cash used in investing activities

(3,424,865

)

(342,435

)

Cash Flows from Financing Activities:

Proceeds from exercise of stock options and stock purchase agreement

29,904

29,295

Tax payments related to net settlement of share-based awards

(11,920

)

(2,289

)

Payments of debt issuance costs

(4,919

)

—

Earn-out Liability Payout

(3,370

)

—

Net cash provided by financing activities

9,695

27,006

Increase in cash, cash equivalents and restricted cash equivalents

1,296,155

1,072,180

Cash, cash equivalents, restricted cash and cash equivalents—beginning of period

2,804,123

1,551,118

Cash, cash equivalents, restricted cash and cash equivalents—end of period

4,100,278

2,623,298

Cash and cash equivalents

4,075,612

2,598,942

Restricted cash and cash equivalents included in restricted deposits

24,666

24,356

Total cash, cash equivalents and restricted cash and cash equivalents

$

4,100,278

$

2,623,298

Supplemental Disclosures:

Interest payments

$

6,000

$

11,360

Income tax payments

$

1,107

$

15,478

Key Operating and Non-GAAP Financial Metrics

We regularly review the following key operating and Non-GAAP financial metrics, to evaluate our business, measure our performance, identify trends in our business, prepare financial projections, and make strategic decisions. We believe these operational and financial measures are useful in evaluating our performance, in addition to our financial results prepared in accordance with GAAP.

Total Revenue

Total revenue includes premium revenue (net of risk adjustment transfers), investment income, and other revenues. We believe total revenue is an important metric to assess the growth of our business, as well as the earnings potential of our investment portfolio.

MLR

MLR is a metric used to calculate medical expenses as a percentage of net premiums before ceded quota share reinsurance. The impact of the federal risk adjustment program is included in the denominator of our MLR. We believe MLR is an important metric to demonstrate the ratio of our costs to pay for healthcare of our members to the net premium before ceded quota share reinsurance.

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands, except percentages)

2026

2025

2026

2025

Net claims before ceded quota share reinsurance (A)

$

3,794,445

$

2,552,973

$

7,024,302

$

4,812,624

Net premiums before ceded quota share reinsurance (B)

$

4,789,331

$

2,803,444

$

9,370,193

$

5,799,265

Medical Loss Ratio (A divided by B)

79.2

%

91.1

%

75.0

%

83.0

%

SG&A Expense Ratio

The SG&A expense ratio reflects the Company’s selling, general, and administrative expenses, as a percentage of total revenue (net of risk adjustment transfers). We believe the SG&A expense ratio is useful to evaluate our ability to manage our overall selling, general, and administrative cost base.

Earnings (Loss) from Operations

Earnings (loss) from operations is the Company's total revenue less total operating expenses. We believe earnings (loss) from operations is an important primary metric for assessing operating performance.

Net Income (Loss) Attributable to Oscar Health, Inc.

Net income (loss) attributable to Oscar Health, Inc. is net earnings (loss) allocated to the Company after net income (loss) attributable to noncontrolling interests. It is a key indicator of the Company’s profitability and operational efficiency, allowing management to evaluate performance and make informed decisions on strategic planning, cost management, and resource allocation.

Adjusted EBITDA

Adjusted EBITDA is defined as Net income (loss) for the Company and its consolidated subsidiaries before interest expense, income tax expense (benefit), and depreciation and amortization, as further adjusted for stock-based compensation and other items that are considered unusual or not representative of underlying trends of our business, where applicable for the period presented. We present Adjusted EBITDA because we believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Adjusted EBITDA is a non-GAAP measure. Management believes that investors’ understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing our ongoing results of operations. We caution investors that amounts presented in accordance with our definition of Adjusted EBITDA may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate Adjusted EBITDA in the same manner.

By providing this non-GAAP financial measure, together with a reconciliation to the most comparable U.S. GAAP measure, Net income (loss), we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. Adjusted EBITDA has limitations as an analytical tool, and should not be considered in isolation, or as an alternative to, or a substitute for, net income (loss) or other financial statement data presented in our Condensed Consolidated Financial Statements as indicators of financial performance.

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2026

2025

2026

2025

Net income (loss)

$

361,828

$

(228,491

)

$

1,040,851

$

47,015

Interest expense

4,709

5,847

10,092

11,841

Other expenses (income)

915

(2,794

)

844

124

Income tax expense (benefit)

21,183

(5,045

)

40,933

7,660

Earnings (loss) from operations

388,635

(230,483

)

1,092,720

66,640

Depreciation and amortization

6,060

6,970

13,078

13,700

Stock-based compensation (1)

20,654

24,109

36,623

49,084

Adjusted EBITDA

$

415,349

$

(199,404

)

$

1,142,421

$

129,424

(1) Represents non-cash expenses related to equity-based compensation programs, which vary from period to period depending on various factors including the timing, number, and the valuation of awards. Additionally, these expenses are reported net of any stock-based compensation that has been capitalized for software development costs.

Appendix

Supplemental Financial Information

Premium

The Company records premium revenue net of premiums for reinsurance contracts accounted for under reinsurance accounting. The following table reconciles total reinsurance premiums ceded and reinsurance premiums assumed, which are included as components of total premium revenue in the Condensed Consolidated Statements of Operations:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2026

2025

2026

2025

Direct policy premiums

$

5,666,469

$

3,482,764

$

11,696,744

$

6,832,435

Risk adjustment transfers

(871,470

)

(692,245

)

(2,314,281

)

(1,065,994

)

Reinsurance premiums ceded

(4,989

)

(2,690

)

(10,607

)

(5,232

)

Assumed premiums (1)

(679

)

15,615

(1,663

)

38,056

Premium

$

4,789,331

$

2,803,444

$

9,370,193

$

5,799,265

(1) The Company did not renew the Cigna+Oscar Small Group arrangement with Cigna Health and Life Insurance Company after its initial term ended on December 31, 2024. Following termination, the Company has been providing transition and run-off services, and will continue to provide such services through December 31, 2026. The Company also continues to share in premiums and claims for plans sold or issued prior to December 15, 2024.

Medical Expenses

The Company records medical expenses net of reinsurance recoveries for reinsurance contracts accounted for under reinsurance accounting. The following table reconciles total medical expenses to the amount presented in the Condensed Consolidated Statements of Operations:

Three Months Ended June 30,

Six Months Ended June 30,

(in thousands)

2026

2025

2026

2025

Direct claims incurred

$

3,872,861

$

2,562,117

$

7,166,698

$

4,830,401

Ceded reinsurance claims

(78,390

)

(22,203

)

(141,074

)

(53,215

)

Assumed reinsurance claims

(26

)

13,059

(1,322

)

35,438

Medical expenses

$

3,794,445

$

2,552,973

$

7,024,302

$

4,812,624

Risk Adjustment

The risk adjustment programs in the markets the Company serves are administered federally by CMS and are designed to mitigate the potential impact of adverse selection and provide stability for health insurers. Under these programs, each plan is assigned a risk score based upon demographic information and current year claims information related to its members. Plans with lower than average risk scores generally pay into the pool, while plans with higher than average risk scores generally receive distributions. The following table provides a rollforward of the Company’s beginning and ending risk adjustment receivable and payable balances for the six months ended June 30, 2026 and 2025:

Six Months Ended June 30, 2026

Six Months Ended June 30, 2025

(in thousands)

Risk Adjustment Receivable

Risk Adjustment Payable

Net Risk Adjustment Payable

Risk Adjustment Receivable

Risk Adjustment Payable

Net Risk Adjustment Payable

Beginning balance (1)

$

56,066

$

2,587,700

$

2,531,634

$

64,779

$

1,558,341

$

1,493,562

Change in accrual:

Current year

$

27,970

$

2,401,634

$

2,373,664

$

33,303

$

1,021,779

$

988,476

Prior years (2)

11,719

(47,432

)

(59,151

)

(10,465

)

67,067

77,532

Change in accrual, net

$

39,689

$

2,354,202

$

2,314,513

$

22,838

$

1,088,846

$

1,066,008

Ending balance:

Current year

$

27,970

$

2,401,634

$

2,373,664

$

33,303

$

1,021,779

$

988,476

Prior years

67,785

2,540,268

2,472,483

54,314

1,625,408

1,571,094

Ending balance

$

95,755

$

4,941,902

$

4,846,147

$

87,617

$

2,647,187

$

2,559,570

(1) The table includes risk adjustment data validation (“RADV”) receivables and payables. The balance at the beginning of each year presented pertains to prior policy years.

(2) Includes immaterial payments for prior policy years.

More News From Oscar Health, Inc.

The market expects Oscar Health, Inc. (OSCR - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +148.3%.

Revenues are expected to be $4.93 billion, up 72% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 34.33% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Oscar Health?For Oscar Health, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +48.85%.

On the other hand, the stock currently carries a Zacks Rank of #1.

So, this combination indicates that Oscar Health will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Oscar Health would post earnings of $1.21 per share when it actually produced earnings of $2.07, delivering a surprise of +71.07%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Oscar Health appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Insurance - Multi line industry, Equitable Holdings, Inc. (EQH - Free Report) , is soon expected to post earnings of $1.66 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +50.9%. Revenues for the quarter are expected to be $3.8 billion, down 0% from the year-ago quarter.

The consensus EPS estimate for Equitable Holdings has been revised 2.2% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.22%.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Equitable Holdings will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Oscar Health, Inc. (OSCR - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, OSCR broke through the 20-day moving average, which suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

OSCR has rallied 10.1% over the past four weeks, and the company is a Zacks Rank #1 (Strong Buy) at the moment. This combination suggests OSCR could be on the verge of another move higher.

The bullish case solidifies once investors consider OSCR's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.

Investors should think about putting OSCR on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.

NEW YORK--(BUSINESS WIRE)--Oscar Health will host its 2026 Investor Day on Wednesday, September 16, 2026.

Oscar Health, Inc. (OSCR - Free Report) ended the recent trading session at $29.50, demonstrating a -4.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.57%.

Shares of the company have appreciated by 2.81% over the course of the past month, outperforming the Finance sector's gain of 2.55%, and the S&P 500's gain of 0.25%.

The upcoming earnings release of Oscar Health, Inc. will be of great interest to investors. The company's earnings report is expected on August 6, 2026. It is anticipated that the company will report an EPS of $0.45, marking a 150.56% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.89 billion, indicating a 70.85% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $18.77 billion, which would represent changes of +134.91% and +60.4%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Oscar Health, Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 24.82% higher. Oscar Health, Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Oscar Health, Inc. has a Forward P/E ratio of 52.45 right now. This signifies a premium in comparison to the average Forward P/E of 10.02 for its industry.

Also, we should mention that OSCR has a PEG ratio of 1.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. OSCR's industry had an average PEG ratio of 1.06 as of yesterday's close.

The Insurance - Multi line industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Oscar Health, Inc. (OSCR - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this company have returned +1.6%, compared to the Zacks S&P 500 composite's +0.5% change. During this period, the Zacks Insurance - Multi line industry, which Oscar Health falls in, has gained 6.4%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Oscar Health is expected to post earnings of $0.45 per share, indicating a change of +150.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $0.59 points to a change of +134.9% from the prior year. Over the last 30 days, this estimate has changed +24.8%.

For the next fiscal year, the consensus earnings estimate of $1.19 indicates a change of +101.7% from what Oscar Health is expected to report a year ago. Over the past month, the estimate has changed +8.2%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Oscar Health is rated Zacks Rank #1 (Strong Buy).

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Oscar Health, the consensus sales estimate of $4.89 billion for the current quarter points to a year-over-year change of +70.9%. The $18.77 billion and $21.52 billion estimates for the current and next fiscal years indicate changes of +60.4% and +14.7%, respectively.

Last Reported Results and Surprise HistoryOscar Health reported revenues of $4.65 billion in the last reported quarter, representing a year-over-year change of +52.6%. EPS of $2.07 for the same period compares with $0.92 a year ago.

Compared to the Zacks Consensus Estimate of $4.89 billion, the reported revenues represent a surprise of -5.02%. The EPS surprise was +71.07%.

Over the last four quarters, Oscar Health surpassed consensus EPS estimates three times. The company topped consensus revenue estimates times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Oscar Health is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Oscar Health. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

In the latest close session, Oscar Health, Inc. (OSCR - Free Report) was down 1.48% at $30.61. This change lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.

Prior to today's trading, shares of the company had gained 8.79% outpaced the Finance sector's gain of 3.3% and the S&P 500's gain of 1.61%.

The upcoming earnings release of Oscar Health, Inc. will be of great interest to investors. The company's earnings report is expected on August 6, 2026. On that day, Oscar Health, Inc. is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 138.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.83 billion, up 68.58% from the year-ago period.

OSCR's full-year Zacks Consensus Estimates are calling for earnings of $0.47 per share and revenue of $18.7 billion. These results would represent year-over-year changes of +127.81% and +59.85%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Oscar Health, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Oscar Health, Inc. possesses a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Oscar Health, Inc. is at present trading with a Forward P/E ratio of 66.11. This indicates a premium in contrast to its industry's Forward P/E of 10.09.

It is also worth noting that OSCR currently has a PEG ratio of 2.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Insurance - Multi line industry stood at 1.13 at the close of the market yesterday.

The Insurance - Multi line industry is part of the Finance sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 32% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

In the latest close session, Oscar Health, Inc. (OSCR - Free Report) was up +1.27% at $31.20. The stock exceeded the S&P 500, which registered a gain of 0.81% for the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.

Heading into today, shares of the company had gained 10.63% over the past month, outpacing the Finance sector's gain of 4.07% and the S&P 500's gain of 1.13%.

The investment community will be paying close attention to the earnings performance of Oscar Health, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.34, showcasing a 138.2% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.83 billion, up 68.58% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.47 per share and a revenue of $18.7 billion, signifying shifts of +127.81% and +59.85%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Oscar Health, Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Oscar Health, Inc. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Oscar Health, Inc. is presently being traded at a Forward P/E ratio of 65.55. This represents a premium compared to its industry average Forward P/E of 9.99.

It's also important to note that OSCR currently trades at a PEG ratio of 2.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Insurance - Multi line industry had an average PEG ratio of 1.11.

The Insurance - Multi line industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Oscar Health, Inc. (OSCR - Free Report) closed the most recent trading day at $28.52, moving -3.16% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. Elsewhere, the Dow saw an upswing of 0.26%, while the tech-heavy Nasdaq appreciated by 1.52%.

Prior to today's trading, shares of the company had gained 28.21% outpaced the Finance sector's gain of 2.74% and the S&P 500's loss of 1.82%.

The investment community will be closely monitoring the performance of Oscar Health, Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.34, marking a 138.2% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.83 billion, indicating a 68.58% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $0.47 per share and a revenue of $18.7 billion, demonstrating changes of +127.81% and +59.85%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Oscar Health, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Oscar Health, Inc. is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Oscar Health, Inc. is presently being traded at a Forward P/E ratio of 62.66. For comparison, its industry has an average Forward P/E of 9.63, which means Oscar Health, Inc. is trading at a premium to the group.

One should further note that OSCR currently holds a PEG ratio of 2.06. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Insurance - Multi line industry stood at 1.02 at the close of the market yesterday.

The Insurance - Multi line industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

On June 23, 2026, Oscar Health Inc OSCR shares rose 4.9% to a current price of $29.93, reflecting a strong performance in the market. The stock has experienced a significant 52-week range, with a high of $30.09 and a low of $10.69.

GF Value™ verdict: Current price is $29.93, and GF Value™ is $21.02, indicating the stock is 42.4% overvalued.GF Score™ of 79/100 suggests that the stock is rated as Above Average in terms of overall quality and performance potential.Notable signal: Insider activity indicates a bullish sentiment, with insiders buying $11.9M and selling $7.0M in the last 3 months. Is OSCR Overvalued or Undervalued? Oscar Health Inc OSCR is currently assessed as overvalued according to the GF Value™, which estimates the fair value at $21.02. This indicates a significant margin of safety that is not present at the current price of $29.93, which is 42.4% above the calculated intrinsic value. The GF Valuation label of "Significantly Overvalued" further emphasizes the risk associated with the stock's current valuation. Investors should be cautious, as buying at overvalued levels may lead to potential losses should the market correct itself or the company fails to meet growth expectations.

GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. This analysis serves as a reminder that while the stock has shown strong momentum and growth, the current price does not reflect an attractive entry point for long-term investors.

How Does OSCR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 32.2x 49.8x Oscar Health's current forward P/E ratio of 32.2x is considerably lower than its 5-year median P/E of 49.8x, suggesting a potential undervaluation relative to its historical performance. This P/E analysis aligns with the GF Value™ verdict, indicating that while the stock is currently overvalued based on GF Value™, it is trading below its historical valuation metrics.

What Does OSCR's GF Score™ Tell Us? Metric Rating GF Score™ 79/100 Financial Strength 6/10 Profitability 3/10 Growth 10/10 Valuation 5/10 Momentum 8/10 The GF Score™ of 79/100 positions Oscar Health in a favorable light, particularly highlighting its growth rank of 10/10, which indicates robust future growth potential. However, the profitability rank of 3/10 suggests that the company may face challenges in generating earnings relative to its peers. The balance between strong growth and average profitability could create volatility in stock performance.

What Are Insiders Doing with OSCR Stock? Recent insider activity for Oscar Health has shown a positive trend, with insiders buying a total of $11.9 million worth of shares while selling $7.0 million in the last three months. This net buying signals confidence from those within the company about its future prospects. Such insider actions can often be indicative of management's belief in the company's growth trajectory and can serve as a bullish signal for market participants.

What This Means for Investors In conclusion, Oscar Health Inc OSCR is currently assessed as overvalued based on its GF Value™ of $21.02 compared to its market price of $29.93. While the stock has demonstrated strong momentum and growth performance, potential investors should be wary of the significant overvaluation and consider the associated risks before making any investment decisions.

For the complete analysis, visit the Oscar Health Inc OSCR stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is OSCR's GF Score™?

OSCR has a GF Score™ of 79/100, indicating that it is rated as Above Average in terms of overall quality and potential performance, suggesting a favorable outlook compared to many peers.

Is OSCR overvalued or undervalued?

Based on the GF Value™, OSCR is currently overvalued, with a market price of $29.93 compared to a fair value estimate of $21.02, reflecting a significant overvaluation risk.

What is OSCR's P/E ratio?

The forward P/E ratio for OSCR is currently 32.2x, which is below its historical 5-year median P/E of 49.8x, indicating that while it is trading below historical averages, the stock is still considered overvalued based on GF Value™.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Healthcare may not be as hot an industry as space or artificial intelligence (AI), but it's much larger than either today. Trillions of dollars are spent on healthcare in the United States every year, a figure that's set to grow faster than inflation as the country's average age rises over the next few decades.

It is a massive industry ripe for disruption, with stakeholders across the board upset with legacy systems, such as traditional health insurance, that underperform for customers. Some brave companies are trying to change this paradigm, such as Oscar Health (OSCR 2.25%).

The start-up health insurer is up 90% this year, and with a market cap of just $8.6 billion, it still has plenty of room to grow in the years ahead. Here's why the stock is still a buy for investors in 2026 and beyond.

Image source: Getty Images.

Disrupting the health insurance market Oscar Health was founded back in 2012 to take advantage of the new Affordable Care Act (ACA) health insurance marketplace. After the new health insurance laws were enacted during the Obama administration, more individuals were paying for coverage through state-regulated marketplaces, which Oscar wanted to address.

Through fits and starts, Oscar has grown its customer base over the past few years at roughly the pace of the ACA marketplace, while also taking market share from existing players. At the end of last quarter, it had 3.2 million customers, making it one of the largest players in the ACA marketplace.

How has Oscar Health done this? It's pretty simple: The company provides a better customer experience at a price similar to other health insurance plans. Through services like free telehealth, dedicated online customer-service reps, and modern digital tools, Oscar Health has achieved much higher customer satisfaction than old-school health insurance companies, which are not well-liked by many customers.

Profit surprise, but more ahead Oscar Health has not been consistently profitable over its history, but that's due to the necessary scale needed to operate a health insurer in all 50 states. Now, with millions of Oscar health insurance customers, the company is finally leveraging its network to generate more revenue without the proportional increase in baseline expenses.

This year, Oscar Health has set the high end of its guidance at $19 billion in revenue and $450 million in operating earnings, both records for the company. Last quarter, it reported $700 million in operating income, which was actually higher than its total guidance for 2026. This happens because of increased healthcare utilization throughout the year, as well as some initial payors for health insurance deciding to ditch monthly payments as the year progresses.

Over the next three quarters, Oscar Health is guiding to lose money. But this would still put it on target to hit or exceed its 2026 earnings guidance, which is why the stock has begun to rocket higher this year.

With a vast population in the United States and only 3.2 million customers at the end of last quarter, there is plenty of room for Oscar Health to grow its insurance premiums in the years ahead. As long as it operates efficiently, this will lead to billions of dollars in profits.

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Why Oscar Health stock still has room to run One of the great investing adages is to let your winners ride; for anyone holding Oscar Health stock, remember this. And if you still haven't bought, don't let the 90% share-price pop this year dissuade you.

Oscar Health's $19 billion in 2026 premium revenue could more than double to $50 billion if it doubles its total customers to 6.5 million over the next five years. Just a few years ago, the number of total customers was under 1 million, so this is not an unreasonable assumption.

Health insurers operate on thin margins, but even a 5% operating margin on $50 billion in premium revenue would mean $2.5 billion in annual operating income. Today, Oscar Health stock has a market cap of $8.6 billion, or just 3.5 times what the business may earn a few years from now.

This potential makes Oscar Health stock a great buy today, even though it's up 90% this year. Just make sure to hold on for a long time.

In the latest close session, Oscar Health, Inc. (OSCR - Free Report) was down 1.64% at $16.17. The stock's change was less than the S&P 500's daily loss of 0.64%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.59%.

Prior to today's trading, shares of the company had gained 34.64% outpaced the Finance sector's gain of 8.48% and the S&P 500's gain of 9.33%.

Market participants will be closely following the financial results of Oscar Health, Inc. in its upcoming release. The company plans to announce its earnings on May 6, 2026. The company is predicted to post an EPS of $1.21, indicating a 31.52% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.89 billion, up 60.62% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.2 per share and revenue of $18.91 billion. These totals would mark changes of +111.83% and +61.62%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Oscar Health, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Oscar Health, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Oscar Health, Inc. is presently trading at a Forward P/E ratio of 80.85. This valuation marks a premium compared to its industry average Forward P/E of 10.08.

The Insurance - Multi line industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 152, finds itself in the bottom 38% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Oscar Health, Inc. (OSCR - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this company have returned +52.9% over the past month versus the Zacks S&P 500 composite's +12.2% change. The Zacks Insurance - Multi line industry, to which Oscar Health belongs, has gained 8.4% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Oscar Health is expected to post earnings of $1.21 per share, indicating a change of +31.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $0.2 points to a change of +111.8% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $1.06 indicates a change of +430% from what Oscar Health is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Oscar Health is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Oscar Health, the consensus sales estimate of $4.89 billion for the current quarter points to a year-over-year change of +60.6%. The $18.91 billion and $21.16 billion estimates for the current and next fiscal years indicate changes of +61.6% and +11.9%, respectively.

Last Reported Results and Surprise HistoryOscar Health reported revenues of $2.81 billion in the last reported quarter, representing a year-over-year change of +17.3%. EPS of -$1.24 for the same period compares with -$0.62 a year ago.

Compared to the Zacks Consensus Estimate of $3.21 billion, the reported revenues represent a surprise of -12.49%. The EPS surprise was -47.62%.

Over the last four quarters, Oscar Health surpassed consensus EPS estimates three times. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Oscar Health is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Oscar Health. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

When Centene Corporation reported its first-quarter results in late April, the numbers told two stories that seemed impossible to reconcile.

The St. Louis-based insurer had hemorrhaged customers, watching its Affordable Care Act marketplace membership collapse from 5.6 million to 3.6 million in just one year — a drop of roughly 2 million people. Yet the company posted $1.5 billion in net earnings, raised its full-year profit guidance, and saw its adjusted earnings per share jump to $3.37, well above what Wall Street expected.

How does an insurer make more money with fewer customers? The answer reveals a lot about who is still standing in the post-subsidy-cliff health insurance market — and who is paying for it.

The math of higher prices The simplest explanation is that Centene raised premiums faster than members walked away. After the enhanced ACA subsidies expired on January 1, premium hikes across the industry averaged 20 to 26 percent. Centene’s revenue actually grew year-over-year, climbing from $46.6 billion to $49.9 billion in the quarter, even as its marketplace book shrank by more than a third. When prices rise enough, fewer paying customers can still mean more money on the top line — and after a punishing 2025 in which insurers were squeezed by high medical spending and an unfavorable member mix, those rate hikes flowed almost directly to the bottom line.

Who left, and who stayed The more interesting story is in the composition of the customers who remained. When subsidies disappeared, the people most likely to drop coverage or downgrade to a cheaper Bronze plan were the young and healthy — exactly the customers insurers most want to keep. The people who held on tended to be older, sicker, and managing chronic conditions they couldn’t afford to leave untreated.

Insurers call this “adverse selection,” and you can see it directly in Centene’s numbers. The company’s commercial Health Benefit Ratio — the share of premium dollars paid out in medical claims — came in at 75.3 percent, slightly above expectations, reflecting what executives politely called “higher acuity” among remaining members. Translation: the people still in the pool are using more care. But because Centene priced its 2026 plans assuming exactly that, the math still worked.

An industry-wide pattern Centene isn’t alone. UnitedHealth, Elevance Health, and other major managed-care companies have leaned on the same playbook: raise prices, accept a smaller but more predictable membership base, and lean on the ACA’s risk-adjustment mechanism — which transfers funds from insurers with healthier members to those with sicker ones — to smooth out the rough edges. Analysts at the consultancy Wakely estimate that 14 percent of ACA enrollees missed their January 2026 premium payments, and the marketplace could shrink by as much as 26 percent by year-end. Wall Street, however, has largely cheered the discipline. After a brutal 2025, investors wanted to see margins — and they got them.

What it means for you For consumers, Centene’s quarter is a reminder that the insurance market and the household budget often move in opposite directions. The same conditions that produced record profits — premium increases, narrower benefits, sicker risk pools — are the ones squeezing your wallet. If you’re still on a marketplace plan, the practical takeaways are familiar but worth repeating: shop carefully during open enrollment rather than auto-renewing, run the numbers on Bronze plans paired with a Health Savings Account, and watch your modified adjusted gross income closely, since one extra dollar above the 400 percent federal poverty level threshold can wipe out your subsidy entirely.

The cliff was supposed to hurt insurers. So far, it’s hurting the rest of us.

Health insurer Oscar Health swung to a $679 million first quarter profit – the highest in company history – as its health plan membership jumped more than 50% and medical costs eased, the company said Wednesday May 6.

Oscar Health

Health insurer Oscar Health swung to a $679 million first quarter profit – the highest in company history – as its health plan membership jumped more than 50% and medical costs eased.

Oscar, which grew to 3.2 million health plan members as one of the nation’s largest providers of individual coverage under the Affordable Care Act, on Wednesday reported net income of $679 million, or $2.07 per diluted share. That compares to $275.3 million, or 92 cents in the first quarter of 2025.

Founded in 2012, Oscar had yet to turn a profit for a full year until 2024, but Mark Bertolini -- the former chief executive officer of Aetna who was tapped as Oscar’s top executive in March of 2023 and his team – have delivered on their promises as they remain bullish on the individual health insurance market even as rivals are retreating. This year’s first quarter profit was several times what the company made last year and the year before.

Oscar’s revenue rose 53% to $4.6 billion from $3 billion in the year-ago quarter thanks to the 56% increase in health plan enrollment from 2 million last year after Oscar expanded sales of its health insurance products into new markets for this year.

Oscar now offers coverage in 573 counties across 93 metropolitan markets after expanding into two new states - Alabama and Mississippi - for this year, putting the company’s Obamacare products in 20 U.S. states for the 2026 health benefit year.

“Oscar Health drove solid first-quarter performance with significant year-over-year improvements across our core metrics,” Bertolini said Wednesday in a statement accompanying earnings. “We are reaffirming our guidance and remain on track to significantly expand margins and achieve meaningful profitability in 2026.”

MORE FOR YOU

Like other health insurers, Oscar’s medical costs eased in the first quarter and were much lower than rivals that had medical loss ratios north of 85%. The medical loss ratio, which is the percentage of premium revenue that goes toward medical costs, was 70.5% for the first quarter of 2026 compared to 75.4% for the first quarter of 2025.

Oscar’s medical loss ratio was 95.4% in the fourth quarter of last year. That compares to 88.1% in the fourth quarter of 2024.

Health insurers historically have wanted that benefit expense ratio percentage in the mid to low 80s but that’s been largely unachievable for most other health insurers for the last year or so in part because insurers say Americans, particularly older adults, have a pent up demand for healthcare following the Covid-19 pandemic when many patients delayed treatment.

“The decrease was primarily due to our disciplined pricing strategy, claims and risk adjustment seasonality from metal and new member mix, and favorable prior period reserve development,” Oscar said in its earnings report.

Oscar Health (OSCR) delivered a standout Q1 2026, with $4.65B revenue, 52.7% YoY growth, and a 70.5% medical loss ratio. I reaffirm my Strong Buy rating and raise the 2026 price target to $30, citing robust execution and guidance reaffirmation. OSCR's SG&A leverage and technology platform drove operating efficiency, with Q1 Adjusted EBITDA at $727.1M and SG&A ratio likely below 15.8%.

Investors looking for stocks in the Insurance - Multi line sector might want to consider either M?nchener R?ckversicherungs-Gesellschaft (MURGY - Free Report) or Oscar Health, Inc. (OSCR - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, both M?nchener R?ckversicherungs-Gesellschaft and Oscar Health, Inc. are sporting a Zacks Rank of #1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

MURGY currently has a forward P/E ratio of 2.72, while OSCR has a forward P/E of 84.61. We also note that MURGY has a PEG ratio of 0.47. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. OSCR currently has a PEG ratio of 2.78.

Another notable valuation metric for MURGY is its P/B ratio of 2.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, OSCR has a P/B of 6.33.

Based on these metrics and many more, MURGY holds a Value grade of A, while OSCR has a Value grade of D.

Both MURGY and OSCR are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MURGY is the superior value option right now.