SummaryOscar Health has surged over 100% since April, dramatically outperforming the benchmark.Despite the rally, OSCR trades at about a forward P/S of 0.50, suggesting over 80% undervaluation versus the sector median.I maintain my Buy rating, anchored by continued revenue growth, margin expansion, and accelerating bottom-line performance.Elevated short interest reflects market skepticism, but structural concerns appear limited, and OSCR remains a compelling diversification play. PM Images/DigitalVision via Getty Images
Finally, it looks like my bullish take on Oscar Health (OSCR) is playing out the way I thought it would. The stock has appreciated by more than 100% since my previous coverage
2.2K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in OSCR over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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 has rerated to the $30 range, reflecting its strong performance but reduced asymmetry versus prior opportunities. Risk Adjustment Transfer dynamics and plan mix will pressure EPS and margins in Q2 and beyond, despite an encouraging Q1 medical loss ratio. I expect MLR to rise to the mid-to-high seventies and negative EPS for upcoming quarters, with SG&A likely flat as tech efficiencies are offset.
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.
Oscar Health (OSCR) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.
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.
Product diversification has been helping Zacks Multiline Insurance industry players lower concentration risk, ensure uninterrupted revenue generation and improve retention ratio. Better pricing, prudent underwriting, increased exposure and faster economic recovery should benefit Oscar Health (OSCR - Free Report) , Radian Group (RDN - Free Report) , CNO Financial Group (CNO - Free Report) , Pelagos Insurance Capital Limited (PLGO - Free Report) and Horace Mann Educators (HMN - Free Report) . Accelerated digitalization will help in the smooth functioning of the industry. The increasing acceptance of embedded insurance is also expected to drive the industry. Per a report in Financial Services, premiums from embedded insurance are projected to exceed $722 billion globally by 2030.
The solid capital level of multiline insurers will fuel merger and acquisition (M&A) activities. The Fed has kept interest rates unchanged so far in 2026 and has hinted at the possibility of a cut later this year. Though insurers are direct beneficiaries of an improved rate environment and rate cuts are headwinds, investment income is expected to remain strong, given insurers’ diverse investment portfolio as well as the continued growth of private market investments. Also, an investment portfolio skewed toward fixed-income maturities provides some upside. Continued inflation also acts as a drag, making repairs, medical care, and replacement costs more expensive. Insurers’ focus on personalizing offerings to enhance customer experience and leveraging digitalization is the key. Given moderating pricing and increased competition, pricing competition will likely improve, according to an Insurance Business report.
About the Industry The Zacks Multiline Insurance industry comprises companies that provide single insurance coverage, bundling automobile, homeowner, long-term care, and life and health insurance to individuals and businesses. The insured pays a single premium and is covered for many things through a single contract. These companies cover commercial and personal properties, automobiles, marine, livestock, aviation, personal accident, life, including permanent and term insurance, supplemental accident and health insurance, workers’ compensation, annuity products, private mortgage insurance, et al. The players also provide risk management services. Since the companies offer single insurance coverage for multiple products, customer retention improves. The insured stands to benefit from lower premium payments compared to paying individual premiums for insuring varied products.
4 Trends Shaping the Future of the Multiline Insurance Industry Diversified Portfolio Supports Long-Term Growth: Multiline insurers benefit from diversified product portfolios, reducing reliance on any single business line and limiting concentration risk. Rising awareness of financial protection, increasing demand for customized insurance solutions and emerging opportunities in cyber, pet and green-energy insurance are expected to support premium growth. While lower interest rates may put pressure on life insurance earnings and catastrophe losses can affect non-life profitability, diversified operations and disciplined underwriting help mitigate these risks.
Softening Pricing Environment: Commercial insurance pricing is easing after several years of strong premium increases as improved industry capital levels and greater underwriting capacity intensify competition. With more insurers competing for quality business, pricing power is weakening, limiting premium growth and putting pressure on underwriting margins, especially if claims costs remain elevated. In this environment, disciplined underwriting, prudent risk selection and cost efficiency will be critical to sustaining profitability.
Merger & Acquisition Activity: Consolidation in the multiline insurance industry is expected to accelerate as insurers seek to expand across new products, markets and geographies while strengthening their competitive positions. Improved deal activity, particularly in technology-driven transactions, is likely to support growth following a slowdown caused by inflation. Insurers are increasingly acquiring insurtech firms to enhance digital capabilities, improve operational efficiency and deliver more innovative, customer-centric insurance solutions amid the industry's ongoing digital transformation.
Increased Adoption of Technology: Multiline insurers are increasingly adopting AI, advanced analytics, cloud computing, blockchain and automation to improve underwriting, claims processing and customer service. Digital distribution channels and real-time data enable more accurate risk assessment and personalized pricing. Continued investments in technology and analytics are enhancing operational efficiency, lowering costs and strengthening insurers' ability to compete in an increasingly digital marketplace. Per a Deloitte FSI Predictions article, insurers have the capacity to generate nearly $4.7 billion in annual global premiums from AI-related insurance, translating to a compound annual growth rate of around 80%.
Zacks Industry Rank Indicates Bleak Prospects The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bleak prospects in the near term. The Zacks Multiline Insurance industry, housed within the broader Zacks Finance sector, currently carries a Zacks Industry Rank #169, which places it in the bottom 32% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperforms the bottom 50% by a factor of more than 2 to 1.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is the result of a negative earnings outlook for the constituent companies in aggregate. The bleak outlook reflects that the industry’s earnings estimates have been revised 6.4% downward by analysts for the current year.
Before we present a few multiline insurance stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
Industry vs. Sector and S&P 500 The Multiline Insurance industry has underperformed the sector and the Zacks S&P 500 composite in a year. The stocks in this industry have collectively gained 4.8% year to date compared with the Finance sector’s increase of 5.9% and the Zacks S&P 500 composite’s rise of 9.7% in the same time frame.
Year-to-Date Price Performance
Current Valuation On the basis of its trailing 12-month price-to-book (P/B), which is commonly used for valuing insurance stocks, the industry is currently trading at 2.98X compared with the S&P 500’s 8.09X and the sector’s 4.45X.
Over the past five years, the industry has traded as high as 2.98X, as low as 1.34X and at the median of 2.49X.
Price-to-Book (P/B) Ratio (TTM)
Price-to-Book (P/B) Ratio (TTM)
5 Multiline Insurance Stocks to Add to Your Portfolio We are presenting two Zacks Rank #1 (Strong Buy) stocks and three Zacks Rank #2 (Buy) stocks from the Multiline Insurance industry. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oscar Health: Headquartered in New York, NY, Oscar offers a differentiated, technology-enabled approach to health insurance, with a strong focus on the Affordable Care Act marketplace. Continued membership growth, stronger underwriting discipline, and increasing operating leverage position the company for sustained expansion. Expanding margins and long-term monetization of its technology platform add to the upside. Oscar sports a Zacks Rank #1.
The Zacks Consensus Estimate for OSCR’s 2026 and 2027 earnings indicates 127.8% and 134.7% year-over-year increases, respectively. The expected long-term earnings growth is pegged at 30.4%, better than the industry average of 12.4. It has a VGM Score of A.
Price and Consensus: OSCR
Pelagos Insurance Capital Limited: Headquartered in Pembroke, Bermuda, Pelagos Insurance provides insurance and reinsurance solutions across Bermuda, the Republic of Ireland, and the United Kingdom. Its diversified business mix, disciplined underwriting, and robust capital base underpin resilient earnings and consistent book value growth through market cycles. Expanding underwriting partnerships, efficient capital deployment, and shareholder returns through dividends and buybacks contribute to the upside. Pelagos Insurance sports a Zacks Rank #1.
The Zacks Consensus Estimate for PLGO’s 2026 and 2027 earnings indicates 97% and 17.6% year-over-year increases, respectively. It has a VGM Score of B.
Price and Consensus: PLGO
Horace Mann Educators: Headquartered in Springfield, IL, it is the largest financial services company serving the U.S. educator market. Niche focus, improving product offerings, better pricing and a strengthened distribution model are likely to benefit Horace Mann's first-quarter results. Earned premium growth ahead of loss cost growth is likely to have favored the combined ratio. Continued share buybacks are expected to have boosted the bottom line. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for HMN’s 2026 and 2027 earnings witnessed a 3.2% and 1.8% upward movement, respectively, in the past 60 days. Horace Mann has a VGM Score of B.
Price and Consensus: HMN
CNO Financial Group: Headquartered in Carmel, IN, this Zacks Rank #2 company is a top-tier holding company for a group of insurance companies operating throughout the United States. CNO Financial is well-positioned to sustain growth, supported by solid collected premiums from its life and health insurance offerings, increased new annualized premiums and higher fee-based income. Positive industry trends, pricing adjustments and ongoing investments in technology are also contributing to the company’s momentum.
The Zacks Consensus Estimate for CNO’s 2026 and 2027 earnings indicates a year-over-year increase of 8.2% and 9.8%, respectively. The consensus estimates for 2026 and 2027 earnings moved 1.8% and 1.9% north, respectively, in the past 60 days.
Price and Consensus: CNO
Radian Group: Headquartered in Philadelphia, PA, Radian Group is a credit enhancement company that supports homebuyers, mortgage lenders, loan servicers and investors with a suite of private mortgage insurance and related risk-management products and services. Radian Group’s heightened focus on the core business and services with higher growth potential ensures a predictable and recurring fee-based revenue stream. New business, combined with increasing annual persistency, should drive continued growth of the insurance-in-force portfolio. This Zacks Rank #2 mortgage insurer has been strengthening its capital position with capital contributions, reinsurance transactions and cash position. This helps Radian Group engage in wealth distribution via dividend hikes and share buybacks.
The Zacks Consensus Estimate for RDN’s 2026 and 2027 earnings indicates 16.2% and 2.8% year-over-year increases, respectively. The expected long-term earnings growth is 7.7%. Radian Group has a VGM Score of B.
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 at $31.44 in the latest trading session, marking a -2.3% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.12%.
Shares of the company witnessed a gain of 31.29% over the previous month, beating the performance of the Finance sector with its gain of 5.36%, and the S&P 500's loss of 0.9%.
Market participants will be closely following the financial results of Oscar Health, Inc. in its upcoming release. The company is expected to report EPS of $0.34, up 138.2% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.83 billion, reflecting a 68.58% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.47 per share and revenue of $18.7 billion, which would represent changes of +127.81% and +59.85%, respectively, from the prior year.
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 such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been no change in the Zacks Consensus EPS estimate. Oscar Health, Inc. is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Oscar Health, Inc. currently has a Forward P/E ratio of 68.47. This represents a premium compared to its industry average Forward P/E of 9.94.
Investors should also note that OSCR has a PEG ratio of 2.25 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Insurance - Multi line industry stood at 1.03 at the close of the market yesterday.
The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 33% 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.
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) 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.
Oscar Health, Inc. (OSCR - Free Report) closed at $29.16 in the latest trading session, marking a -2.57% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.43%.
Prior to today's trading, shares of the company had gained 36.73% outpaced the Finance sector's gain of 2.81% and the S&P 500's loss of 1.34%.
Market participants will be closely following the financial results of Oscar Health, Inc. in its upcoming release. The company is expected to report EPS of $0.34, up 138.2% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.83 billion, reflecting a 68.58% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.47 per share and revenue of $18.7 billion, indicating changes of +127.81% and +59.85%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Oscar Health, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection remained stagnant. Oscar Health, Inc. is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Oscar Health, Inc. is at present trading with a Forward P/E ratio of 63.68. This denotes a premium relative to the industry average Forward P/E of 9.59.
Also, we should mention that OSCR has a PEG ratio of 2.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Insurance - Multi line industry was having an average PEG ratio of 0.92.
The Insurance - Multi line industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 156, finds itself in the bottom 37% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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].
On June 15, 2026, Oscar Health Inc OSCR shares rose 3.1% to $29.14, continuing a strong upward trend with a remarkable year-to-date increase of 102.8%. The stock has fluctuated between a 52-week low of $10.69 and a high of $29.42 over the past year.
GF Value™ verdict: Current price of $29.14 is 39.4% above GF Value™ of $20.91, indicating the stock is overvalued.GF Score™: 80/100, signifying a strong overall performance relative to its peers.Most notable signal: Insider activity shows $11.9 million in purchases and $7.0 million in sales over the last three months, indicating mixed sentiment among insiders. Is OSCR Overvalued or Undervalued? Oscar Health Inc's current price of $29.14 significantly exceeds the GF Value™ estimate of $20.91, marking the stock as 39.4% overvalued. This situation suggests a lack of margin of safety for potential investors, as purchasing shares at this price could expose them to downside risk if the market corrects towards the intrinsic value. The GF Valuation label categorizes the stock as "Significantly Overvalued," emphasizing the caution necessary when considering an investment in OSCR at this time.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current overvaluation, investors may want to approach OSCR with caution, as the risk of a price correction looms large in an environment where stock prices are detached from fundamental values.
How Does OSCR's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 31.3x 49.8x Oscar Health's current forward P/E ratio of 31.3x is notably lower than its 5-year median P/E of 49.8x, indicating that while the stock is trading above its historical valuation, it is less expensive relative to its past performance metrics. This P/E analysis aligns with the GF Value™ verdict of being overvalued, as it suggests that the market is pricing OSCR at a higher valuation than its historical averages, which is a potential red flag for investors.
What Does OSCR's GF Score™ Tell Us? Metric Rating GF Score™ 80/100 Financial Strength 6/10 Profitability 3/10 Growth 10/10 Valuation 5/10 Momentum 10/10 The GF Score™ of 80/100 indicates a strong position overall, with notable strengths in growth and momentum, both rated at 10/10. However, the profitability rank of 3/10 suggests significant room for improvement in this area. The financial strength score of 6/10 reflects a solid foundation, but it is not extraordinary. The mixed signals from these scores highlight that while Oscar Health exhibits strong growth potential, it faces challenges in profitability that could impact long-term sustainability.
What Are Insiders Doing with OSCR Stock? Recent insider activity at Oscar Health shows that insiders have purchased $11.9 million worth of shares while selling $7.0 million. This pattern of buying could suggest confidence among insiders about the company's future prospects. However, the simultaneous selling indicates that some insiders may also be looking to capitalize on recent price increases. The mixed nature of this activity could reflect differing outlooks among insiders regarding the company's performance moving forward.
What This Means for Investors Based on the GF Value™ assessment, Oscar Health Inc OSCR is currently overvalued. The significant divergence between the current price and the estimated GF Value™ indicates potential risks for investors considering entry points at this valuation level.
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's GF Score™ is 80/100, indicating a strong overall performance relative to its peers, suggesting potential for higher long-term returns.
Is OSCR overvalued or undervalued?
OSCR is currently overvalued, as its price of $29.14 is 39.4% above the GF Value™ estimate of $20.91.
What is OSCR's P/E ratio?
OSCR's forward P/E ratio is 31.3x, which is significantly lower than its 5-year median P/E of 49.8x, suggesting the stock is currently trading below its historical valuation metrics.
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.
Today's Change
(
-2.25
%) $
-0.65
Current Price
$
28.26
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.
Oscar Health, Inc. (OSCR - Free Report) ended the recent trading session at $28.26, demonstrating a -2.25% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.5% for the day. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.31%.
The company's shares have seen an increase of 24.88% over the last month, surpassing the Finance sector's gain of 1.89% and the S&P 500's loss of 0.23%.
The investment community will be paying close attention to the earnings performance of Oscar Health, Inc. in its upcoming release. The company is expected to report EPS of $0.34, up 138.2% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.83 billion, indicating a 68.58% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.47 per share and revenue of $18.7 billion. These totals would mark changes of +127.81% and +59.85%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Oscar Health, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Oscar Health, Inc. boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Oscar Health, Inc. has a Forward P/E ratio of 61.51 right now. This denotes a premium relative to the industry average Forward P/E of 9.71.
We can also see that OSCR currently has a PEG ratio of 2.02. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Insurance - Multi line industry currently had an average PEG ratio of 0.86 as of yesterday's close.
The Insurance - Multi line industry is part of the Finance sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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) closed the most recent trading day at $16.44, moving +1.67% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.64%.
The company's stock has climbed by 34.41% in the past month, exceeding the Finance sector's gain of 7.36% and the S&P 500's gain of 8.59%.
The upcoming earnings release of Oscar Health, Inc. will be of great interest to investors. The company's earnings report is expected on May 6, 2026. The company's earnings per share (EPS) are projected to be $1.21, reflecting a 31.52% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.89 billion, showing a 60.62% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.2 per share and revenue of $18.91 billion, which would represent changes of +111.83% and +61.62%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Oscar Health, Inc. presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Oscar Health, Inc. is presently trading at a Forward P/E ratio of 79.53. This valuation marks a premium compared to its industry average Forward P/E of 10.
The Insurance - Multi line industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 41% 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.
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.
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.
Oscar Health, Inc. (OSCR - Free Report) ended the recent trading session at $18.46, demonstrating a +2.96% change from the preceding day's closing price. This change outpaced the S&P 500's 1.02% gain on the day. On the other hand, the Dow registered a gain of 1.62%, and the technology-centric Nasdaq increased by 0.89%.
Shares of the company have appreciated by 52.86% over the course of the past month, outperforming the Finance sector's gain of 7.2%, and the S&P 500's gain of 12.23%.
Analysts and investors alike will be keeping a close eye on the performance of Oscar Health, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on May 6, 2026. It is anticipated that the company will report an EPS of $1.21, marking a 31.52% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.89 billion, reflecting a 60.62% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.2 per share and revenue of $18.91 billion, which would represent changes of +111.83% and +61.62%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Oscar Health, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Oscar Health, Inc. currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Oscar Health, Inc. is at present trading with a Forward P/E ratio of 88.18. This valuation marks a premium compared to its industry average Forward P/E of 9.52.
The Insurance - Multi line industry is part of the Finance sector. With its current Zacks Industry Rank of 144, this industry ranks in the bottom 41% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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.
NEW YORK--(BUSINESS WIRE)--Oscar Health, Inc. (“Oscar” or the “Company”) (NYSE: OSCR) announced today its financial results for the first quarter ended March 31, 2026.
“Oscar Health drove solid first-quarter performance with significant year-over-year improvements across our core metrics,” said Mark Bertolini, CEO of Oscar Health. “We are reaffirming our guidance and remain on track to significantly expand margins and achieve meaningful profitability in 2026. Consumers expect to shop for healthcare like everyday products – on choice, price, and value. Oscar’s exceptional technology, lifestyle products, and member experience deliver exactly that. The workforce is shifting, the individual market is resilient, and Oscar is leading the transition to a consumer-driven health economy.”
Oscar is reaffirming its full year 2026 outlook across all metrics as provided in its financial results press release dated February 10, 2026.
First Quarter 2026 Financial Highlights
Three Months Ended March 31,
(in thousands, except percentages)
2026
2025
Total revenue
$4,647,194
$3,046,263
Medical loss ratio (“MLR”)
70.5%
75.4%
Selling, general, and administrative (“SG&A”) expense ratio
15.2%
15.8%
Earnings from operations
$704,085
$297,123
Net income attributable to Oscar Health, Inc.
$678,996
$275,271
Adjusted EBITDA(1)
$727,072
$328,828
(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 March 31,
Membership by Offering
2026
2025
Individual and Small Group (1)
3,174,489
2,021,484
Cigna+Oscar (2)
—
17,983
Total Members
3,174,489
2,039,467
(1) 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.
First Quarter 2026 Key Metrics and Non-GAAP Financial Metrics
Total revenue was approximately $4.6 billion for the first quarter of 2026 compared to $3.0 billion for the first 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 70.5% for the first quarter of 2026 compared to 75.4% for the first quarter of 2025. 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. The Company had $68 million of favorable development in the first quarter of 2026 compared to $31 million of unfavorable development in the first quarter of 2025. The SG&A expense ratio was 15.2% for the first quarter of 2026 compared to 15.8% for the first quarter of 2025. The decrease was primarily due to greater fixed cost leverage and disciplined cost management, partially offset by the impact of higher risk adjustment as a percentage of premium. Earnings from operations was $704.1 million for the first quarter of 2026 compared to earnings from operations of $297.1 million for the first quarter of 2025. The significant increase reflects strong operating performance driven primarily by higher membership, rate increases, favorable prior period development, and fixed cost leverage. Net income attributable to Oscar Health, Inc. was $679.0 million, or $2.07 of diluted earnings per share, for the first quarter of 2026 compared to Net income attributable to Oscar Health, Inc. of $275.3 million, or $0.92 of diluted earnings per share, for the first quarter of 2025. Adjusted EBITDA was $727.1 million for the first quarter of 2026 compared to Adjusted EBITDA of $328.8 million for the first quarter of 2025. Quarterly Conference Call Details
Oscar will host a conference call to discuss its financial results today, May 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.
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 and any regulations enacted thereunder, the expiration of the enhanced Advanced Premium Tax Credits, the implementation of new program integrity rules, the potential funding of a cost-sharing reduction 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 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; 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, +Oscar technology services, and Lucie Health Marketplace. 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 March 31,
(in thousands, except per share amounts)
2026
2025
Revenue
Premium
$
4,580,862
$
2,995,821
Investment income
60,614
46,112
Other revenues
5,718
4,330
Total revenue
4,647,194
3,046,263
Operating Expenses
Medical
3,229,857
2,259,651
Selling, general, and administrative
706,234
482,759
Depreciation and amortization
7,018
6,730
Total operating expenses
3,943,109
2,749,140
Earnings from operations
704,085
297,123
Interest expense
5,383
5,994
Other expenses (income)
(71
)
2,918
Earnings before income taxes
698,773
288,211
Income tax expense
19,750
12,705
Net income
679,023
275,506
Less: Net income attributable to noncontrolling interests
27
235
Net income attributable to Oscar Health, Inc.
$
678,996
$
275,271
Earnings per Share
Basic
$
2.28
$
1.10
Diluted
$
2.07
$
0.92
Weighted Average Common Shares Outstanding
Basic
298,184
251,279
Diluted
329,751
305,938
Oscar Health, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except per share amounts)
March 31, 2026
December 31, 2025
Assets
Current Assets:
Cash and cash equivalents
$
4,805,139
$
2,774,151
Short-term investments
1,994,644
1,216,461
Accounts receivable (net of allowance for credit losses of $7,171 and $7,226)
587,023
362,682
Receivables from CMS (1)
222,195
136,029
Reinsurance recoverable
142,487
99,750
Other current assets
25,817
24,331
Total current assets
7,777,305
4,613,404
Property, equipment, and capitalized software, net
94,194
88,350
Long-term investments
1,266,775
1,470,987
Restricted deposits
28,631
32,951
Other assets
122,741
119,719
Total assets
$
9,289,646
$
6,325,411
Liabilities and Stockholders' Equity
Current Liabilities:
Benefits payable
$
1,734,051
$
1,455,385
Payables to CMS (1)
4,723,244
2,730,095
Accounts payable and other liabilities
505,943
507,325
Unearned premiums
172,004
166,203
Reinsurance payable
5,112
3,579
Total current liabilities
7,140,354
4,862,587
Long-term debt
430,876
430,095
Other liabilities
51,368
51,994
Total liabilities
7,622,598
5,344,676
Commitments and contingencies
Stockholders' Equity
Class A common stock ($0.00001 par value; 825,000 thousand shares authorized, 263,552 thousand and 261,851 thousand shares outstanding as of March 31, 2026 and December 31, 2025, respectively)
3
3
Class B common stock ($0.00001 par value; 82,500 thousand shares authorized, 35,591 thousand and 35,838 thousand shares outstanding as of March 31, 2026 and December 31, 2025, respectively)
—
—
Treasury stock (315 thousand shares as of March 31, 2026 and December 31, 2025)
(2,923
)
(2,923
)
Additional paid-in capital
4,277,292
4,256,972
Accumulated deficit
(2,615,438
)
(3,294,434
)
Accumulated other comprehensive income
5,000
18,030
Total Oscar Health, Inc. stockholders' equity
1,663,934
977,648
Noncontrolling interests
3,114
3,087
Total stockholders' equity
1,667,048
980,735
Total liabilities and stockholders' equity
$
9,289,646
$
6,325,411
(1) Centers for Medicare & Medicaid Services
Oscar Health, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended March 31,
(in thousands)
2026
2025
Cash Flows from Operating Activities:
Net income
$
679,023
$
275,506
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Deferred taxes
(6,204
)
36
Net realized gain on sale of financial instruments
(4
)
(119
)
Depreciation and amortization expense
7,018
6,730
Amortization of debt issuance costs
1,015
194
Stock-based compensation expense
15,969
24,975
Net accretion of investments
(7,077
)
(7,673
)
Change in provision for credit losses
(55
)
(8,650
)
Changes in assets and liabilities:
(Increase) / decrease in:
Receivables from CMS (1)
(86,165
)
(88,745
)
Accounts receivable
(224,288
)
(97,827
)
Reinsurance recoverable
(42,737
)
103,990
Other assets
5,344
(13,265
)
Increase / (decrease) in:
Benefits payable
278,666
108,848
Payables to CMS (1)
1,993,149
571,443
Accounts payable and other liabilities
(2,007
)
24,294
Unearned premiums
5,800
(3,492
)
Reinsurance payable
1,533
(17,703
)
Net cash provided by operating activities
2,618,980
878,542
Cash Flows from Investing Activities:
Purchase of investments
(914,842
)
(336,869
)
Sale of investments
35,000
15,761
Maturity and paydowns of investments
299,243
155,906
Purchase of property, equipment and capitalized software
(8,794
)
(9,026
)
Change in restricted deposits
(860
)
—
Net cash used in investing activities
(590,253
)
(174,228
)
Cash Flows from Financing Activities:
Payments of debt issuance costs
(4,739
)
—
Tax payments related to net settlement of share-based awards
—
(855
)
Proceeds from exercise of stock options
1,139
5,728
Net cash (used in) provided by financing activities
(3,600
)
4,873
Increase in cash, cash equivalents and restricted cash equivalents
2,025,127
709,187
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
4,829,250
2,260,305
Cash and cash equivalents
4,805,139
2,236,555
Restricted cash and cash equivalents included in restricted deposits
24,111
23,750
Total cash, cash equivalents and restricted cash and cash equivalents
$
4,829,250
$
2,260,305
Supplemental Disclosures:
Interest payments
$
4,177
$
154
Income tax payments
$
44
$
—
(1) Centers for Medicare & Medicaid Services
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 March 31,
(in thousands, except percentages)
2026
2025
Net claims before ceded quota share reinsurance (A)
$
3,229,857
$
2,259,651
Net premiums before ceded quota share reinsurance (B)
$
4,580,862
$
2,995,821
Medical Loss Ratio (A divided by B)
70.5
%
75.4
%
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 March 31,
(in thousands)
2026
2025
Net income
$
679,023
$
275,506
Interest expense
5,383
5,994
Other expenses (income)
(71
)
2,918
Income tax expense
19,750
12,705
Earnings from operations
704,085
297,123
Depreciation and amortization
7,018
6,730
Stock-based compensation(1)
15,969
24,975
Adjusted EBITDA
$
727,072
$
328,828
(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 March 31,
(in thousands)
2026
2025
Direct policy premiums
$
6,030,275
$
3,349,671
Risk adjustment transfers
(1,442,811
)
(373,749
)
Reinsurance premiums ceded
(5,618
)
(2,542
)
Assumed premiums (1)
(984
)
22,441
Premium
$
4,580,862
$
2,995,821
(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 March 31,
(in thousands)
2026
2025
Direct claims incurred
$
3,293,837
$
2,268,284
Ceded reinsurance claims
(62,684
)
(31,012
)
Assumed reinsurance claims
(1,296
)
22,379
Medical expenses
$
3,229,857
$
2,259,651
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 three months ended March 31, 2026 and 2025:
Three Months Ended March 31, 2026
Three Months Ended March 31, 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
$
16,112
$
1,374,310
$
1,358,198
$
25,666
$
306,870
$
281,204
Prior years (2)
5,132
89,745
84,613
(3,319
)
89,240
92,559
Change in accrual, net
$
21,244
$
1,464,055
$
1,442,811
$
22,347
$
396,110
$
373,763
Ending balance:
Current year
$
16,112
$
1,374,310
$
1,358,198
$
25,666
$
306,870
$
281,204
Prior years
61,198
2,677,445
2,616,247
61,460
1,647,581
1,586,121
Ending balance
$
77,310
$
4,051,755
$
3,974,445
$
87,126
$
1,954,451
$
1,867,325
(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.
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, Inc. (OSCR - Free Report) came out with quarterly earnings of $2.07 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +71.07%. A quarter ago, it was expected that this company would post a loss of $0.84 per share when it actually produced a loss of $1.24, delivering a surprise of -47.62%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Oscar Health, which belongs to the Zacks Insurance - Multi line industry, posted revenues of $4.65 billion for the quarter ended March 2026, missing the Zacks Consensus Estimate by 5.02%. This compares to year-ago revenues of $3.05 billion. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Oscar Health shares have added about 24.8% since the beginning of the year versus the S&P 500's gain of 6%.
What's Next for Oscar Health?While Oscar Health has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Oscar Health was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.20 on $4.78 billion in revenues for the coming quarter and $0.20 on $18.91 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Multi line is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, TWFG, Inc. (TWFG - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.
This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level.
TWFG, Inc.'s revenues are expected to be $66.63 million, up 23.8% from the year-ago quarter.
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.
How can Oscar Health (OSCR +2.31%), a small insurer in the ACA market, upend the healthcare giants? I sat down with CEO Mark Bertolini to discuss Oscar's growth plans and how it's different from the traditional insurers. In this conversation, we cover how Oscar is playing the role of the underdog, why the network is a differentiator, and how technology plays a role in the consumer experience.
*Stock prices used were end-of-day prices of May 21, 2026. The video was published on May 21, 2026.
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Oscar Health, Inc. (OSCR - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, OSCR's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."
There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving average. Typically, a golden cross involves the 50-day and the 200-day moving averages, since bigger time periods tend to form stronger breakouts.
Golden crosses have three key stages that investors look out for. It starts with a downtrend in a stock's price that eventually bottoms out, followed by the stock's shorter moving average crossing over its longer moving average and triggering a trend reversal. The final stage is when a stock continues the upward climb to higher prices.
A golden cross contrasts with a death cross, another widely-followed chart pattern that suggests bearish momentum could be on the horizon.
Shares of OSCR have been moving higher over the past four weeks, up 34.8%. Plus, the company is currently a #3 (Hold) on the Zacks Rank, suggesting that OSCR could be poised for a breakout.
The bullish case solidifies once investors consider OSCR's positive earnings outlook. For the current quarter, no earnings estimate has been cut compared to 3 revisions higher in the past 60 days. The Zacks Consensus Estimate has increased too.
Given this move in earnings estimates and the positive technical factor, investors may want to keep their eye on OSCR for more gains in the near future.
Top investors like Warren Buffett consistently say their favorite stocks are ones they can hold forever. If you have a high-quality business compounding value, it is highly favorable for you and your retirement account to sit back and let the wealth pile up. $10,000 invested in a stock yielding a 20% annual return will grow to just $25,000 after five years. But if you hold that same stock for 20 years, it will be worth $383,000. That could be much more meaningful to your retirement savings.
With this in mind, here are three high-quality disruptors I believe are great holds for the next 20 years, and why investors should consider buying today.
Image source: Getty Images.
1. A storied entertainment brand The most important factor in finding a stock to hold for 20 years is business durability. Perhaps no brand has been more durable in entertainment over the last few decades than Nintendo (NTDOY 0.27%). The family-friendly giant focused on gaming continues to develop high-quality content and remains the leading video game console seller worldwide.
It recently launched the Nintendo Switch 2 as its new flagship gaming hardware for the next five to 10 years, and it is selling like hotcakes. Twenty million units were sold last fiscal year ending in March, with close to the same projected in its second year at retail.
Today's Change
(
-0.27
%) $
-0.03
Current Price
$
11.10
Nintendo's business model works by selling gaming hardware to players at a thin profit margin, then making up the difference through high-margin game sales from first-party brands like Mario, Zelda, and Pokémon. The same playbook is being followed with the Nintendo Switch 2. Mario Kart World has sold 15 million copies, while a new Pokémon game sold 2.2 million copies within just four days after launch.
I expect the same playbook to work 20 years from now. With the stock down 54% from its highs amid fears over memory chips, Nintendo looks like a stock experiencing short-term pain that will deliver long-term gains for any investor who buys now.
2. The disruptor taking over the health insurance market No industry is perhaps more durable than healthcare. Everyone around the world needs some level of healthcare coverage, making the health insurance market a staple of the United States economy. Even if customers dislike their health insurance provider, they still have to pay premiums each and every year.
Oscar Health (OSCR +2.31%) is a new health insurance provider that aims to delight customers. Instead of bogging down users in confusing paperwork and unclear expenses, Oscar has built a cloud-based health insurance platform from the ground up that is much easier for all stakeholders to use.
With this technology advantage, Oscar Health has attacked legacy players in the individual payor market from the Affordable Care Act marketplace. Through consistent nationwide expansion of its coverage, the business has gained more and more individual health insurance customers each year. Last quarter, it hit 3.2 million paying customers, up from 1 million in Q1 2022.
These customer gains are helping Oscar Health scale up and finally turn a profit. This year, it is guiding for $19 billion in revenue and $250 million to $450 million in operating earnings. Compared to its current market cap of $6.8 billion, the stock looks mighty cheap if you believe it can keep stealing market share in health insurance in the coming years.
ADYEY PE Ratio data by YCharts
3. An underrated presence in payments processing No matter how the economy evolves, retailers will need to process payments from customers worldwide, both offline and online. Adyen (ADYEY 3.99%) believes it has the best payments infrastructure for global corporations, which is why it is gaining market share in payments processing.
It touts customers such as Spotify and Uber with complex processing needs, where Adyen can deliver the best execution -- meaning the highest percentage of payments that actually succeed at checkout -- compared to the competition.
The financial results show this outperformance and market share gains. In Q1 2026, Adyen's processed volume grew 21% year over year, with revenue growing 20% in constant currency. From 2016 through 2025, its revenue has grown by more than 10-fold as more enterprises adopt its checkout terminal for retail payments.
Right now, Adyen's stock is down in the gutter, off 66% from all-time highs, with a price-to-earnings ratio (P/E) of 29. With plenty of room to keep growing market share and a durable addressable market in retail payments, Adyen looks like a great opportunity for investors right now.
The conventional wisdom holds that a stock that trades up more than 50% in less than six months is overvalued. But sometimes the best stocks are recent winners that Wall Street is only beginning to uncover, with fundamental business improvements that remain undervalued relative to their long-term growth trajectories.
This is an apt description for healthcare disruptor Oscar Health (OSCR +2.31%). Oscar Health is a health insurer stealing market share with its technology-focused offering and is beginning to show a profit inflection. Here's why shares -- up 53% so far this year -- are still too cheap to ignore.
Image source: Getty Images.
Market share gains and rapid growth When considering basic health insurance, one might argue that it is a commodity. All the insurer is doing is providing blanket coverage across various health providers in the local area, subject to stringent regulations such as Medicare and the Affordable Care Act (ACA) marketplace.
Where Oscar Health has made inroads, from a standing start a decade ago, is through a better customer experience across everything outside traditional health services. It has built a cloud-based software solution from the ground up, complimentary telehealth for all users, and transparent pricing compared to the competition. It may take years for Oscar to catch up to legacy competitors like UnitedHealth in terms of doctor and care coverage across the United States, but it is already light-years ahead in the rest of the customer experience.
This is why Oscar Health's total number of members paying for insurance has grown rapidly in recent years, hitting 3.2 million at the end of Q1 2026. Right now, the company focuses only on the ACA marketplace, making this growth even more impressive. In Q1 2021, Oscar had just over 500,000 paying insurance members.
Today's Change
(
2.31
%) $
0.63
Current Price
$
27.85
The path to operating leverage is clear What kept Oscar Health's stock in the gutter last year was rising healthcare utilization among its members, which exceeded analyst projections. This was an issue for all health insurers in 2025, leading to a decline in profitability. In 2025, Oscar Health had a $400 million operating loss due to these rising costs.
At the same time, the United States government debated last year whether to eliminate extended tax subsidies for ACA marketplace payors, which increased the pool of citizens who could afford individual health insurance, a boost for Oscar Health. As the government let these subsidies expire amid a tough year for Oscar, the stock began to fall.
It turns out that Oscar Health's nimble management had already prepared health insurance plan pricing for subsidy experimentation while also being conservative in projecting healthcare utilization among members to ensure 2025 did not repeat in 2026.
Q1 2026 results proved the strategy's intelligence. Oscar Health generated $700 million in operating income in the first quarter, gaining market share while also achieving operating leverage. It expects typical seasonality in health insurance to lower its 2026 annual operating earnings to $250 million-$450 million, but that would still be a record high for the business. If the company can keep adding new members, it will gain greater nationwide scale, enabling stronger earnings growth in the years ahead.
Data by YCharts.
Why Oscar Health stock is too cheap to ignore After jumping up 53% this year, Oscar Health trades at a market cap of $6.63 billion. This is still cheap compared to what the business can earn in a few years. At the high end of its 2026 guidance, the company expects revenue of $19 billion and operating income of $450 million, resulting in a profit margin of just 2.3%.
More scale in the years ahead should enable greater expansion of profit margins. Remember that $30 billion in premium revenue and just a 3% profit margin is $900 million in annual operating income, or less than 10x its current market cap. Given the size of the healthcare industry in the United States, premium revenue could grow well beyond $30 billion over the long term.
This makes Oscar Health stock still cheap despite its 50% year-to-date gain.
When looking for multibagger stocks, it is best to hunt in industries with huge addressable markets. Even if a company is the best brand in a sector, but that sector only has $100 million in annual spending and isn't growing, there will be a limit to the company's addressable market unless it can invent new products to serve customers.
One sector where size is not an issue is healthcare, specifically health insurance. Health insurance premiums in the United States are estimated at $1.6 trillion per year, and spending is set to increase faster than GDP due to the country's aging population.
Oscar Health (OSCR +2.31%) is a magnificent healthcare stock taking market share through its technology-focused health insurance offering. Here's why the rapid grower is set to deliver market-beating returns for years to come.
Today's Change
(
2.31
%) $
0.63
Current Price
$
27.85
Gaining share in a massive market The health insurance market changed in 2010 with the enactment of the Affordable Care Act (ACA), which created marketplaces that allow individuals to purchase their own health insurance through a regulated platform each year.
It got off to a bumpy start, but individual payors through the ACA now number around 20 million, making it a meaningful portion of the sector. Oscar has been a big part of this growth with its sole focus on the individual payor market today. Total paying members through Oscar Health plans reached 3.2 million last quarter, an over 50% boost from 2 million in the same quarter a year ago. This is growing much faster than the overall ACA market, indicating that Oscar Health is gaining significant market share.
Why? Because Oscar Health offers a better customer experience with its cloud-first digital platform, saving time and headaches (literally) for its health insurance stakeholders. Now, it is making a big push to transform the employer-led health insurance market to individual contribution plans. These plans allow employers to subsidize employee health insurance, but instead of putting everyone in homogeneous plans, people can use the funds to shop on the ACA marketplace, potentially choosing Oscar insurance.
Management sees a huge addressable market for individual employer-funded plans, potentially reaching 75 million small and mid-sized businesses. With only 3.2 million members last quarter, Oscar Health is guiding for $19 billion in revenue at the high end for 2026. If it can reach 10 million or more customers, that could mean $50 billion or more in annual premiums, depending on where healthcare inflation heads in the years ahead.
Image source: Getty Images.
The path to consistent profitability is technology efficiency Health insurers are highly regulated under the ACA marketplace, with a maximum loss ratio of 80% each year, leaving 20% of their premium revenue for overhead costs and profitability.
Through its growing scale and technology-driven efficiencies, Oscar Health has consistently reduced overhead costs as a percentage of revenue, which should lead to a nice profit inflection in 2026. It generated $700 million in operating income last quarter, with expectations of $250 million to $450 million in operating earnings for all of 2026 due to seasonality in healthcare utilization costs.
Over the long term, we should see continued progress in lowering its overhead costs as a percentage of revenue through greater nationwide scale. Combined with rapid revenue growth -- premium revenue is up 2,770% since 2021 -- Oscar Health can see a huge profit increase in the years ahead. A 5% profit margin on $50 billion in revenue is $2.5 billion in earnings, which could occur within the next five years.
OSCR Revenue (TTM) data by YCharts
Why Oscar Health can deliver market-beating returns Oscar Health stock is set up to crush the market in the years ahead if it simply keeps up its path of profit margin expansion and market share gains in health insurance payors.
Right now, the stock trades at a market cap of $6.6 billion. That results in a price-to-earnings multiple of 15, based on the high end of its 2026 earnings guidance, but, more importantly, just 2.5 times my profit assumption for when Oscar Health reaches $50 billion in revenue. That will not happen in 2026, but patient investors should be able to watch a huge profit inflection unfold over the decade ahead, leading to potentially massive stock price appreciation for investors who hold Oscar Health stock and never sell.
Deciding between a high-growth challenger and a stable industry giant is a classic investor dilemma. You might be weighing Oscar Health (OSCR +2.31%) against UnitedHealth Group (UNH 1.24%) for your 2026 portfolio.
Oscar Health focuses on tech-enabled individual insurance plans, aiming for agility and digital member engagement. UnitedHealth provides insurance, technology, and clinical services to over 151 million people across the globe. Comparing these two shows how different business models tackle the complexities of the U.S. health system today.
The case for Oscar HealthOscar Health operates primarily among healthcare stocks in the U.S. individual coverage market. It provides individual and family plans, alongside technology services such as Lucie Health Marketplace, designed to simplify the member experience. Since nearly 93% of its premiums come from the Centers for Medicare & Medicaid Services, customer concentration like this adds a layer of risk to the business.
For FY 2025, revenue reached approximately $11.7 billion, representing growth of roughly 27.5% compared to the prior year. This trend reflects a significant increase in membership, which reached nearly 3.2 million individuals by early 2026. Despite this revenue expansion, the company reported a net loss of nearly $443.2 million, resulting in a net margin of approximately -3.8% for the period.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.4x. This ratio measures total debt relative to shareholder equity, indicating the company maintains a conservative amount of leverage. The current ratio is approximately 0.9x, which measures short-term liquidity by comparing current assets to current liabilities, suggesting tighter liquidity since it is below 1.0. The company also generated roughly $1.1 billion in free cash flow, which is cash from operations minus capital expenditures.
The case for UnitedHealthUnitedHealth Group is a massive healthcare conglomerate serving approximately 151 million people through a diverse range of insurance and clinical services. The company operates through two primary segments, UnitedHealthcare for insurance and Optum for health technology and value-based care. Approximately 44% of its consolidated revenue comes from the Centers for Medicare & Medicaid Services, which adds a layer of concentration risk to its business model.
In FY 2025, the company generated nearly $447.6 billion in revenue, which is an increase of roughly 11.8% over the previous year. This growth is driven by expanding service offerings and a workforce of more than 390,000 employees. Net income for the period was approximately $12.1 billion, resulting in a net margin of nearly 2.7% for the fiscal year.
Based on the December 2025 balance sheet, the debt-to-equity ratio is approximately 0.8x. This figure illustrates how much the company uses debt to finance its operations relative to the value owned by shareholders. The current ratio is roughly 0.8x, indicating potential liquidity constraints since the value is below 1.0. The company generated nearly $16.1 billion in free cash flow, representing the cash remaining after the business pays for its necessary capital expenditures.
Risk profile comparisonOscar Health faces significant risks from changes to the Affordable Care Act, particularly regarding federal funding and premium tax credits. It must also accurately estimate medical expenses, as failing to predict costs or member health needs can hurt financial results. Heightened competition from regional insurers and national carriers like Centene also poses a constant threat to its market share.
For a company of the scale of UnitedHealth, managing medical costs effectively is vital to maintaining its net margin. Cybersecurity is another major concern, as any data breach involving sensitive patient information could lead to heavy fines and operational shutdowns. The company also faces significant regulatory risks and competition from other large providers like The Cigna Group in its various service markets.
Valuation comparisonUnitedHealth currently trades at a lower Forward P/E than its rival, though Oscar Health offers a more modest P/S ratio relative to its high growth.
MetricOscar HealthUnitedHealthSector BenchmarkForward P/E25.8x20.6x27.5xP/S ratio0.5x0.8xn/aSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Investors choosing between Oscar Health and UnitedHealth are really making a choice between stability and growth. The two companies operate in the same industry, but they represent very different investment opportunities.
Oscar Health is a relative newcomer to the insurance industry. It launched in 2014 and went public in 2021. Because Oscar is still a relatively young public company, investors have a much shorter track record to evaluate than they do with established insurers. It’s considered a “disruptor,” focusing on features like telemedicine and virtual care, as well as offering reward systems for healthy behavior, all accessed via a user-friendly app. It’s considered higher risk than established insurers, but as a small and growing company, the potential upside is compelling.
UnitedHealth, on the other hand, is a massive, stable market leader. It was founded in 1977 and went public in 1984, so it has a long track record of delivering impressive returns for shareholders. Its growth strategies include investments in Medicare Advantage, home healthcare, and hospice. It has faced significant challenges recently over allegations of fraud, data breaches, litigation over the denial of care, and more. This may affect its stock valuation.
As a somewhat conservative investor, one would expect me to choose UnitedHealth. It's a tough call for me, but despite UNH’s wealth-generating track record, I'm drawn to Oscar Health's potential despite the higher risk. And goodness knows the health insurance industry could use a disruptor or two.
From a technical perspective, Oscar Health, Inc. (OSCR - Free Report) is looking like an interesting pick, as it just reached a key level of support. OSCR recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, OSCR has gained 23.7%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even 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 3 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.
The Conference CatalystThe Q1 FoundationOscar Shares Edge HigherOSCR Price Action: At the time of publication, Oscar shares are trading 4.81% higher at $28.53, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
