Oscar Health's Stock Declines Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy OSCR?
Oscar Health Inc. experienced a decline of 5.03% as it crossed below its 5-day SMA, reflecting a challenging market environment.
The stock's drop comes despite recent positive developments, including the U.S. House of Representatives passing a bill to extend Affordable Care Act subsidies, which is expected to enhance Oscar Health's business outlook. However, the overall market sentiment remains weak, with the Nasdaq-100 down 0.01% and the S&P 500 showing minimal movement, indicating sector rotation affecting Oscar's performance.
This decline may present a buying opportunity for investors, as the company's fundamentals remain strong, particularly with the upcoming earnings report and the potential for improved profitability driven by the ACA subsidy extension.
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Analyst Views on OSCR
Wall Street analysts forecast OSCR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OSCR is 17.04 USD with a low forecast of 11.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
1 Buy
4 Hold
2 Sell
Hold
Current: 12.510
Low
11.00
Averages
17.04
High
25.00
Current: 12.510
Low
11.00
Averages
17.04
High
25.00
About OSCR
Oscar Health, Inc. is a healthcare technology company built around a full stack technology platform. The Company's offerings include its insurance business and +Oscar Platform. Its health plans are offered in the individual market. The individual market primarily consists of policies purchased by individuals and families through health insurance marketplaces, established by the ACA and operated by the federal government, as well as other marketplaces operated by individual states. Individuals and families may also purchase policies in the individual market off-exchange. Employees whose employers have chosen to offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) are also able to purchase its health plans. It offers health plans in the individual market under the five metal plan categories defined by the ACA: Catastrophic, Bronze, Silver, Gold, and Platinum. Through the +Oscar platform, the Company deploys its technology to help others throughout the healthcare system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Oscar Health: AI-Driven Innovation in Health Insurance
- Market Share Growth: Oscar Health's paying member count surged from 200,000 in 2019 to 2 million, demonstrating robust growth in the individual market, with expectations for this trend to continue, further solidifying its market position.
- Tech-Driven Insurance Platform: By offering complimentary telehealth services and cloud-based software, Oscar Health enhances customer satisfaction and reduces costs, which is expected to become a standard feature in health insurance by 2026, strengthening its competitive edge.
- Price Adjustments to Address Challenges: In response to rising healthcare costs in 2025, Oscar Health has raised its insurance plan prices by 28%, aiming to restore profitability; while facing potential customer loss in the short term, the long-term outlook remains optimistic.
- Revenue Expectations and Market Valuation: Oscar Health anticipates generating $12 billion in revenue this year against a market cap of under $4 billion, making the current valuation attractive for long-term investors if the company can successfully adjust pricing and return to profitability.
See More
Oscar Health Faces Short-Term Challenges but Long-Term Potential Remains
- Market Share Growth: Oscar Health's paying members surged from 200,000 in 2019 to 2 million, indicating robust growth in the individual health insurance market despite facing short-term pressures from rising healthcare costs.
- Tech-Driven Innovation: The company has launched an AI chatbot named Oswell, powered by OpenAI, aimed at helping members manage their healthcare information more efficiently, thereby enhancing customer satisfaction and reducing operational costs.
- Pricing Adjustment Strategy: Oscar Health plans to raise insurance plan prices by 28% in 2026 to address profitability pressures stemming from rising healthcare costs and the expiration of subsidies, with expectations that this strategy will help restore profitability.
- Revenue Expectations: Although currently unprofitable, Oscar Health anticipates generating $12 billion in revenue this year against a market cap of under $4 billion, suggesting that the current stock price may be undervalued, presenting an attractive opportunity for long-term investors.
See More
Oscar Health: AI-Driven Innovation in Health Insurance
- Market Share Growth: Oscar Health's paying members have surged from 200,000 in 2019 to 2 million, indicating robust growth in the individual health insurance market, a trend expected to continue, thereby enhancing its competitive position.
- Tech-Driven Insurance Platform: By offering complimentary telehealth services and cloud-based software, Oscar Health is improving customer satisfaction and reducing costs, which is anticipated to become a standard feature in health insurance by 2026, further solidifying its market presence.
- Price Adjustments to Address Rising Costs: In response to healthcare costs exceeding projections in 2025, Oscar Health has raised its insurance plan prices by 28%, aiming to restore profitability; while facing short-term customer attrition risks, the long-term outlook remains optimistic.
- Application of AI Tools: Oscar Health has launched the AI chatbot Oswell, powered by OpenAI, to assist members in efficiently managing their healthcare information, which is expected to further enhance user experience and drive business growth.
See More
Oscar Health Shares Decline Amid Medicare Update
- Medicare Impact: The Trump administration's proposed 2027 Medicare Advantage payment changes result in a mere 0.09% average increase, drastically below Wall Street's 4%-6% expectations, putting Oscar Health under pressure to manage rising medical costs effectively.
- Industry Leader's Earnings Drag: UnitedHealth Group reported a medical care ratio near 92% for Q4, up 340 basis points year-over-year, indicating higher-than-expected medical utilization, which amplifies concerns about Oscar Health's cost trends.
- Stock Trend Analysis: Oscar Health's shares are currently trading 6.8% below their 20-day simple moving average and 14.2% below their 100-day average, indicating a bearish trend in the short term, with a 12-month decline of 7.88% reflecting ongoing market struggles.
- Future Earnings Outlook: Investors anticipate a loss of 89 cents per share in the upcoming earnings report on February 10, with revenue estimates at $3.16 billion, indicating growth but also raising concerns about increasing losses that could affect market confidence.
See More
Freeport-McMoran (FCX) Options Volume Hits 99,904 Contracts, 55.2% of Average Daily Volume
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- High Strike Call Options: Among FCX options, the $60 strike call option expiring on February 20, 2026, has particularly high volume with 8,172 contracts traded today, representing about 817,200 underlying shares, suggesting a bullish sentiment among investors regarding future price increases.
- Halliburton Options Activity: Concurrently, Halliburton (HAL) has recorded an options trading volume of 73,129 contracts today, equivalent to approximately 7.3 million shares, which accounts for 54.6% of its average daily trading volume over the past month, reflecting strong market activity for the stock.
- Bullish Call Options: For HAL, the $35 strike call option expiring on March 20, 2026, has seen a trading volume of 22,340 contracts today, representing around 2.2 million underlying shares, indicating investor optimism about the stock's future performance.
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- Call for Reform: UnitedHealth CEO Stephen Hemsley urged lawmakers to pursue broader reforms in health savings accounts and drug pricing in his testimony before Congress, highlighting the urgent need to address rising healthcare spending pressures across the U.S.
- Profit Rebate Plan: The company plans to refund profits from its Affordable Care Act plans to customers in 2026, which is expected to positively impact customer relations while Congress debates extending tax credits, demonstrating UnitedHealth's commitment to its clients.
- Significant Discount Negotiations: Hemsley announced that UnitedHealth negotiated nearly $300 billion in discounts for 2025, a move that not only alleviates financial burdens for clients but also strengthens the company's competitive position in the healthcare market.
- Positive Market Reaction: While UnitedHealth's stock rose by 2.4%, shares of other insurers heavily reliant on ACA coverage fell sharply, indicating market recognition of UnitedHealth's strategic moves and the pressure it places on competitors.
See More
Oscar Health: AI-Driven Innovation in Health Insurance
- Market Share Growth: Oscar Health's paying member count surged from 200,000 in 2019 to 2 million, demonstrating robust growth in the individual market, with expectations for this trend to continue, further solidifying its market position.
- Tech-Driven Insurance Platform: By offering complimentary telehealth services and cloud-based software, Oscar Health enhances customer satisfaction and reduces costs, which is expected to become a standard feature in health insurance by 2026, strengthening its competitive edge.
- Price Adjustments to Address Challenges: In response to rising healthcare costs in 2025, Oscar Health has raised its insurance plan prices by 28%, aiming to restore profitability; while facing potential customer loss in the short term, the long-term outlook remains optimistic.
- Revenue Expectations and Market Valuation: Oscar Health anticipates generating $12 billion in revenue this year against a market cap of under $4 billion, making the current valuation attractive for long-term investors if the company can successfully adjust pricing and return to profitability.
See More
Oscar Health Faces Short-Term Challenges but Long-Term Potential Remains
- Market Share Growth: Oscar Health's paying members surged from 200,000 in 2019 to 2 million, indicating robust growth in the individual health insurance market despite facing short-term pressures from rising healthcare costs.
- Tech-Driven Innovation: The company has launched an AI chatbot named Oswell, powered by OpenAI, aimed at helping members manage their healthcare information more efficiently, thereby enhancing customer satisfaction and reducing operational costs.
- Pricing Adjustment Strategy: Oscar Health plans to raise insurance plan prices by 28% in 2026 to address profitability pressures stemming from rising healthcare costs and the expiration of subsidies, with expectations that this strategy will help restore profitability.
- Revenue Expectations: Although currently unprofitable, Oscar Health anticipates generating $12 billion in revenue this year against a market cap of under $4 billion, suggesting that the current stock price may be undervalued, presenting an attractive opportunity for long-term investors.
See More
Oscar Health: AI-Driven Innovation in Health Insurance
- Market Share Growth: Oscar Health's paying members have surged from 200,000 in 2019 to 2 million, indicating robust growth in the individual health insurance market, a trend expected to continue, thereby enhancing its competitive position.
- Tech-Driven Insurance Platform: By offering complimentary telehealth services and cloud-based software, Oscar Health is improving customer satisfaction and reducing costs, which is anticipated to become a standard feature in health insurance by 2026, further solidifying its market presence.
- Price Adjustments to Address Rising Costs: In response to healthcare costs exceeding projections in 2025, Oscar Health has raised its insurance plan prices by 28%, aiming to restore profitability; while facing short-term customer attrition risks, the long-term outlook remains optimistic.
- Application of AI Tools: Oscar Health has launched the AI chatbot Oswell, powered by OpenAI, to assist members in efficiently managing their healthcare information, which is expected to further enhance user experience and drive business growth.
See More
Oscar Health Shares Decline Amid Medicare Update
- Medicare Impact: The Trump administration's proposed 2027 Medicare Advantage payment changes result in a mere 0.09% average increase, drastically below Wall Street's 4%-6% expectations, putting Oscar Health under pressure to manage rising medical costs effectively.
- Industry Leader's Earnings Drag: UnitedHealth Group reported a medical care ratio near 92% for Q4, up 340 basis points year-over-year, indicating higher-than-expected medical utilization, which amplifies concerns about Oscar Health's cost trends.
- Stock Trend Analysis: Oscar Health's shares are currently trading 6.8% below their 20-day simple moving average and 14.2% below their 100-day average, indicating a bearish trend in the short term, with a 12-month decline of 7.88% reflecting ongoing market struggles.
- Future Earnings Outlook: Investors anticipate a loss of 89 cents per share in the upcoming earnings report on February 10, with revenue estimates at $3.16 billion, indicating growth but also raising concerns about increasing losses that could affect market confidence.
See More
Freeport-McMoran (FCX) Options Volume Hits 99,904 Contracts, 55.2% of Average Daily Volume
- Active Options Trading: Freeport-McMoran (FCX) has seen options trading volume reach 99,904 contracts today, equivalent to approximately 10 million shares, representing 55.2% of its average daily trading volume over the past month, indicating a significant increase in market interest.
- High Strike Call Options: Among FCX options, the $60 strike call option expiring on February 20, 2026, has particularly high volume with 8,172 contracts traded today, representing about 817,200 underlying shares, suggesting a bullish sentiment among investors regarding future price increases.
- Halliburton Options Activity: Concurrently, Halliburton (HAL) has recorded an options trading volume of 73,129 contracts today, equivalent to approximately 7.3 million shares, which accounts for 54.6% of its average daily trading volume over the past month, reflecting strong market activity for the stock.
- Bullish Call Options: For HAL, the $35 strike call option expiring on March 20, 2026, has seen a trading volume of 22,340 contracts today, representing around 2.2 million underlying shares, indicating investor optimism about the stock's future performance.
See More
UnitedHealth CEO Calls for Healthcare Reform, Projects $300 Billion Discounts in 2025
- Call for Reform: UnitedHealth CEO Stephen Hemsley urged lawmakers to pursue broader reforms in health savings accounts and drug pricing in his testimony before Congress, highlighting the urgent need to address rising healthcare spending pressures across the U.S.
- Profit Rebate Plan: The company plans to refund profits from its Affordable Care Act plans to customers in 2026, which is expected to positively impact customer relations while Congress debates extending tax credits, demonstrating UnitedHealth's commitment to its clients.
- Significant Discount Negotiations: Hemsley announced that UnitedHealth negotiated nearly $300 billion in discounts for 2025, a move that not only alleviates financial burdens for clients but also strengthens the company's competitive position in the healthcare market.
- Positive Market Reaction: While UnitedHealth's stock rose by 2.4%, shares of other insurers heavily reliant on ACA coverage fell sharply, indicating market recognition of UnitedHealth's strategic moves and the pressure it places on competitors.
See More
