Oscar Health Inc (OSCR, Financial), a company specializing in health insurance plans, has recently seen a significant uptick in its stock performance. With a market capitalization of $2.04 billion, the current price of OSCR stock stands at $9.01. Over the past week, the stock has gained an impressive 10.69%, and looking at the past three months, the gain is even more remarkable at 56.70%. According to GuruFocus's valuation methods, the GF Value of the stock is currently $10.95, indicating that the stock is modestly undervalued. This is a notable change from three months ago when the past GF Value was not applicable.
Introduction to Oscar Health Inc
Oscar Health Inc operates within the healthcare plans industry, providing a range of insurance plans for individuals, families, and businesses. The company's offerings include virtual care, doctor support, and appointment scheduling services. Oscar Health also caters to the Medicare Advantage program, targeting adults over the age of 65 or those eligible for traditional Medicare who opt for private market plans. The company's recent stock performance has caught the attention of investors, signaling potential growth and value in the healthcare insurance sector.
Analyzing Oscar Health's Profitability
Despite the positive momentum in stock price, Oscar Health's Profitability Rank remains low at 2 out of 10. The company's Return on Equity (ROE) is at -36.34%, which, while not ideal, is better than 21.05% of its industry peers. The Return on Assets (ROA) stands at -8.17%, and the Return on Invested Capital (ROIC) is at -64.42%, both metrics also surpassing a small fraction of competitors. These figures suggest that while Oscar Health is not currently leading in profitability, it does maintain a competitive edge over some industry participants.
Growth Trajectory of Oscar Health
Oscar Health's growth metrics present a more optimistic picture. The company's 3-Year Revenue Growth Rate per Share is a robust 92.40%, outperforming 88.89% of its industry peers. Looking ahead, the Total Revenue Growth Rate (Future 3Y To 5Y Est) is projected at 52.16%, which is better than 90.91% of competitors. However, the 3-Year EPS without NRI Growth Rate is at -30.40%, which, while not positive, still ranks better than 17.65% of industry peers. These growth indicators suggest that Oscar Health has significant potential for future revenue expansion, despite current earnings challenges.
Notable Shareholders in Oscar Health
Among the notable shareholders of Oscar Health, Mason Hawkins (Trades, Portfolio) leads with 7,407,281 shares, representing a 3.28% share percentage. Following him is Jim Simons (Trades, Portfolio), holding 3,066,500 shares, which accounts for 1.36% of the company's shares. Steven Cohen (Trades, Portfolio) also holds a significant stake with 1,608,530 shares, equating to 0.71% share percentage. The involvement of these prominent investors may signal confidence in the company's long-term prospects and could be a contributing factor to the stock's recent performance.
Competitive Landscape
When compared to its competitors, Oscar Health stands out with its $2.04 billion market cap. Alignment Healthcare Inc (ALHC, Financial) follows with a market cap of $1.65 billion, while Clover Health Investments Corp (CLOV, Financial) and Bright Health Group Inc (BHG, Financial) have market caps of $477.891 million and $40.310 million, respectively. Oscar Health's recent stock performance and market valuation suggest that it is gaining ground in the competitive healthcare plans industry.
Conclusion
In summary, Oscar Health Inc's stock performance has been impressive over the past quarter, with a 56.70% increase in stock price. The company's valuation indicates that it is modestly undervalued, presenting potential opportunities for investors. While profitability remains a challenge, the company's growth prospects appear promising, with significant revenue growth outpacing many of its peers. The confidence shown by major shareholders and the company's standing among competitors further bolster the case for Oscar Health as a stock to watch in the healthcare plans sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
