Oscar Health: The Healthcare Disruptor Just Hit Its Stride

May 14, 2025 10:02 AM ETOscar Health, Inc. (OSCR) StockOSCR
(10min)

Summary

  • Oscar Health, Inc. delivered strong Q1 results with 42% revenue growth, improved cost control, and expanding membership, signaling sustainable profitability and margin expansion.
  • The company stands to benefit from competitor exits in ACA exchanges and potential policy changes lowering prescription drug costs, enhancing long-term operating leverage.
  • Despite a high current P/E, forward multiples and consensus EPS growth suggest Oscar is undervalued with >41% upside potential in the next 12-18 months.
  • Risks remain, notably the potential expiration of enhanced APTCs, but I see Oscar's growth trajectory and valuation as compelling, initiating OSCR stock with a Buy rating.

Insurance company clients take out the complete insurance concept. Assurance, insurance, car, real estate and property, travel, finances, health, family, life, accident, and logistics insurance

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The Company

Oscar Health, Inc. (NYSE:OSCR) is a mid-cap firm specializing in building a full-stack tech platform that serves ~1.7 million members, primarily selling health insurance plans directly through the Affordable Care Act (ACA) marketplaces.

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This article was written by

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Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

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.

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