We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Oscar Health Trading at a Premium: Why Should You Still Buy It?
Read MoreHide Full Article
Key Takeaways
Oscar Health trades at 4.5 times book value, above the 2.67 industry average, despite strong growth.
OSCR membership hit 2.96 million as Q2 revenues surged 70% to $4.88 billion on higher enrollment and rates.
Oscar Health targets 20% revenue CAGR through 2027 and a 5% operating margin next year.
Shares of Oscar Health (OSCR - Free Report) are trading at a price-to-book multiple of 4.65, higher than the industry average of 2.65 and the median of 3.97 over three years. It has a Value Score of B.
The premium valuation likely reflects Oscar’s technology-led, consumer-centric business model, along with its longer-term margin expansion potential supported by improving medical loss ratio (MLR) and SG&A ratios.
Oscar is a leading healthcare technology company built around a full-stack technology platform. It is well-positioned for sustained growth as it strengthens its presence in the expanding U.S. individual health insurance market.
Image Source: Zacks Investment Research
OSCR is expensive compared to Molina Healthcare (MOH - Free Report) and Centene (CNC - Free Report) . Molina Healthcare is a government-focused managed-care insurer with Marketplace and Medicaid exposure, while Centene is a major managed-care insurer with substantial ACA Marketplace exposure.
OSCR: An Outperformer
OSCR has gained 142.5% year to date, outperforming the industry, its sector, as well as the Zacks S&P 500 composite in the same time frame. OSCR shares are trading at a discount to their 52-week high.
Image Source: Zacks Investment Research
The rally likely reflects Oscar Health’s sharp improvement in profitability. Robust ACA membership growth, higher revenues, a better medical loss ratio and tighter cost control provided a meaningful boost to earnings. Management’s substantial upward revision to its 2026 profit outlook further reinforced investor confidence, supporting a significant rerating of the stock.
Molina Healthcare has gained 10.1% year to date, while Centene has gained 54.2% in the same time frame.
The Case for OSCR Stock
Structural changes in the labor market, including the expansion of gig work, part-time employment, self-employment and early retirement, are increasing demand for portable health coverage outside traditional employer-sponsored plans. Oscar Health appears well positioned to benefit from this shift through its technology-driven platform, which combines plan design, member engagement, care navigation, claims processing and provider management. Its Individual Coverage Health Reimbursement Arrangements, Lucie Health marketplace and Trove Group also provide avenues for growth beyond the core insurance business.
Strong membership gains underscore growing adoption of Oscar’s offerings. Membership reached 2.96 million as of June 30, 2026, up 46% year over year. Second-quarter revenues surged 70% to $4.88 billion, driven by higher enrollment and premium-rate increases. For 2026, management expects revenues of $18.7-$19.0 billion, reflecting the company’s expanding presence in the individual insurance market.
Oscar also plans to enter more than 150 additional metropolitan statistical areas by 2027. Disciplined pricing, consumer-focused products and a scalable technology platform should support further expansion in the Affordable Care Act marketplace. Its strategy is aligned with broader healthcare trends such as rising costs, digitization, consumerization and increasing demand for personalized care.
Management is targeting a 20% revenue CAGR through 2027 and a 5% operating margin next year. Technology and AI investments, fixed-cost leverage and lower risk-adjustment expenses are supporting expense-ratio improvement.
Oscar also maintains strong liquidity, with $4.08 billion in cash and cash equivalents and $6.08 billion in investments versus roughly $432 million of long-term debt as of June 30, 2026.
Optimistic Analyst Sentiment on Oscar Health
The Zacks Consensus Estimate for 2026 and 2027 revenues indicates a 60.8% and 10.2% year-over-year increase, respectively. The same for 2026 and 2027 earnings implies a 208.3% and 21% year-over-year increase, respectively.
The expected earnings growth rate is pegged at 49.7%, better than the industry average of 13.2%. The company has a Growth Score of A.
The consensus estimate for 2026 and 2027 earnings has moved 18.8% and 24% north, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimates for 2026 and 2027 earnings of Molina Healthcare, as well as Centene, witnessed upward movement in the past 30 days.
How to Play OSCR Shares
Oscar’s growing membership base, improving cost structure, scalable technology platform, disciplined underwriting and strong balance sheet should help translate its recent momentum into sustainable earnings growth. Its VGM Score of A further strengthens the investment case.
Although the stock trades at a premium valuation, favorable analyst sentiment, solid share-price momentum and Oscar’s positioning as a fast-growing healthcare platform remain encouraging. These factors make this Zacks Rank #2 (Buy) stock an attractive candidate for investors seeking exposure to the healthcare sector.
View the Zacks #1 Rank List
Image: Bigstock
Oscar Health Trading at a Premium: Why Should You Still Buy It?
Key Takeaways
Shares of Oscar Health (OSCR - Free Report) are trading at a price-to-book multiple of 4.65, higher than the industry average of 2.65 and the median of 3.97 over three years. It has a Value Score of B.
The premium valuation likely reflects Oscar’s technology-led, consumer-centric business model, along with its longer-term margin expansion potential supported by improving medical loss ratio (MLR) and SG&A ratios.
Oscar is a leading healthcare technology company built around a full-stack technology platform. It is well-positioned for sustained growth as it strengthens its presence in the expanding U.S. individual health insurance market.
Image Source: Zacks Investment Research
OSCR is expensive compared to Molina Healthcare (MOH - Free Report) and Centene (CNC - Free Report) . Molina Healthcare is a government-focused managed-care insurer with Marketplace and Medicaid exposure, while Centene is a major managed-care insurer with substantial ACA Marketplace exposure.
OSCR: An Outperformer
OSCR has gained 142.5% year to date, outperforming the industry, its sector, as well as the Zacks S&P 500 composite in the same time frame. OSCR shares are trading at a discount to their 52-week high.
Image Source: Zacks Investment Research
The rally likely reflects Oscar Health’s sharp improvement in profitability. Robust ACA membership growth, higher revenues, a better medical loss ratio and tighter cost control provided a meaningful boost to earnings. Management’s substantial upward revision to its 2026 profit outlook further reinforced investor confidence, supporting a significant rerating of the stock.
Molina Healthcare has gained 10.1% year to date, while Centene has gained 54.2% in the same time frame.
The Case for OSCR Stock
Structural changes in the labor market, including the expansion of gig work, part-time employment, self-employment and early retirement, are increasing demand for portable health coverage outside traditional employer-sponsored plans. Oscar Health appears well positioned to benefit from this shift through its technology-driven platform, which combines plan design, member engagement, care navigation, claims processing and provider management. Its Individual Coverage Health Reimbursement Arrangements, Lucie Health marketplace and Trove Group also provide avenues for growth beyond the core insurance business.
Strong membership gains underscore growing adoption of Oscar’s offerings. Membership reached 2.96 million as of June 30, 2026, up 46% year over year. Second-quarter revenues surged 70% to $4.88 billion, driven by higher enrollment and premium-rate increases. For 2026, management expects revenues of $18.7-$19.0 billion, reflecting the company’s expanding presence in the individual insurance market.
Oscar also plans to enter more than 150 additional metropolitan statistical areas by 2027. Disciplined pricing, consumer-focused products and a scalable technology platform should support further expansion in the Affordable Care Act marketplace. Its strategy is aligned with broader healthcare trends such as rising costs, digitization, consumerization and increasing demand for personalized care.
Management is targeting a 20% revenue CAGR through 2027 and a 5% operating margin next year. Technology and AI investments, fixed-cost leverage and lower risk-adjustment expenses are supporting expense-ratio improvement.
Oscar also maintains strong liquidity, with $4.08 billion in cash and cash equivalents and $6.08 billion in investments versus roughly $432 million of long-term debt as of June 30, 2026.
Optimistic Analyst Sentiment on Oscar Health
The Zacks Consensus Estimate for 2026 and 2027 revenues indicates a 60.8% and 10.2% year-over-year increase, respectively. The same for 2026 and 2027 earnings implies a 208.3% and 21% year-over-year increase, respectively.
The expected earnings growth rate is pegged at 49.7%, better than the industry average of 13.2%. The company has a Growth Score of A.
The consensus estimate for 2026 and 2027 earnings has moved 18.8% and 24% north, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimates for 2026 and 2027 earnings of Molina Healthcare, as well as Centene, witnessed upward movement in the past 30 days.
How to Play OSCR Shares
Oscar’s growing membership base, improving cost structure, scalable technology platform, disciplined underwriting and strong balance sheet should help translate its recent momentum into sustainable earnings growth. Its VGM Score of A further strengthens the investment case.
Although the stock trades at a premium valuation, favorable analyst sentiment, solid share-price momentum and Oscar’s positioning as a fast-growing healthcare platform remain encouraging. These factors make this Zacks Rank #2 (Buy) stock an attractive candidate for investors seeking exposure to the healthcare sector.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.