We recently published 10 Stocks With Eye-Popping Double-Digit Gains. Oscar Health Inc. (NYSE:OSCR) is one of the top performers on Friday. Oscar Health extended its rally to a second day on Friday to come close to its 52-week high, as investors cheered President Donald Trump’s decision to pause the imposition of a 100 percent tariff on pharmaceutical imports. During the session, the stock touched its highest day price of $21.71, just shy of its 52-week high of $22.78, before finishing the day up by 12.34 ...

Company Performance - Oscar Health, Inc. (OSCR) closed at $19.28, reflecting a +2.01% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.06% [1] - The company's shares increased by 6.9% over the past month, surpassing the Finance sector's gain of 0.8% and the S&P 500's gain of 3.94% [1] Earnings Projections - Oscar Health, Inc. is expected to report earnings of -$0.55 per share, indicating a year-over-year decline of 150% [2] - Revenue is projected at $3.09 billion, representing a 27.51% increase from the prior-year quarter [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of -$1.42 per share and revenue of $12.06 billion, reflecting shifts of -1520% and +31.44% respectively from the last year [3] - Recent changes to analyst estimates may indicate a favorable outlook on the company's business health and profitability [3] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Oscar Health, Inc. at 4 (Sell) [5] - The consensus EPS projection has remained stagnant over the past 30 days [5] Industry Context - Oscar Health, Inc. operates within the Insurance - Multi line industry, which holds a Zacks Industry Rank of 82, placing it in the top 34% of over 250 industries [6] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [6]

Group 1 - The contributor has 5 years of experience in financial markets and over 2 years in primary investment research, focusing on smaller, under-covered companies for potential mis-pricing opportunities [1] - The investment strategy emphasizes a bottom-up research approach, aiming to identify asymmetric opportunities with limited downside risk [1] Group 2 - There is no disclosure of stock, options, or similar derivative positions in any mentioned companies, nor plans to initiate such positions in the next 72 hours [2] - The article expresses the contributor's own opinions and is not influenced by compensation from any company mentioned [2]

Group 1: Fund Overview - Defiance ETFs launched the Defiance Daily Target 2X Long OSCR ETF (Ticker: OSCX), providing 2X daily exposure to Oscar Health, Inc. (NYSE: OSCR) [1][2] - The fund aims to deliver daily investment results of 200% of the daily performance of Oscar Health, utilizing derivatives like swaps and options [2][3] Group 2: Company Profile - Oscar Health, Inc. is a technology-driven health insurance company focused on making healthcare more accessible and affordable through innovative plan designs and digital platforms [3] - The company is recognized for being one of the first insurers built around a full-stack technology platform, transforming the insurance experience for individuals, families, and small businesses [3] Group 3: Investment Considerations - An investment in OSCX is not a direct investment in Oscar Health, Inc., and the fund is designed for knowledgeable investors who understand the risks associated with leveraged investments [4][6] - The fund is intended for short-term trading and may not be suitable for buy-and-hold investors due to the potential for significant losses over periods longer than one day [4][10]

Core Viewpoint - Oscar Health Inc (OSCR) is gaining attention on Wall Street as a potential high-reward investment, particularly in light of discussions surrounding ACA subsidies and a possible government shutdown, drawing comparisons to Hims & Hers Health Inc (HIMS) [1][2]. Group 1: Company Performance and Market Position - Oscar Health has over 80% of its revenue linked to individual plans within the ACA marketplace, with enrollment growth exceeding 40% this year, leading to a revenue outlook of $9.2–$9.3 billion, representing a 50% year-over-year increase [3]. - The company's CEO, Mark Bertolini, believes that the subsidies are unlikely to disappear without causing significant disruption, which may strengthen the likelihood of their extension [4]. - Oscar's profitability outlook into 2026 appears robust if subsidies are maintained, supported by bundled care programs and a growing Hispanic member base [4]. Group 2: Market Dynamics and Technical Indicators - Oscar Health's stock has a short interest of approximately 25% and a relatively low float, creating conditions similar to HIMS, where significant news can lead to rapid stock movements [2]. - Technical indicators suggest a potential short squeeze, with the stock trading above $14 since August, an RSI of 62.14, and bullish MACD indicators. The short interest stands at 24.73%, with trading volume on September 19 spiking to four times the average [5]. - The stock is being closely watched for a breakout at the $25 level, which could trigger significant upward movement if policy developments align favorably [5][6].

Core Insights - Oscar Health (OSCR) is characterized by high volatility, leading to elevated option premiums, making cash-secured puts an attractive strategy for traders looking to buy the stock at a discount [1][6]. Cash-Secured Put Strategy - A cash-secured put involves writing a put option while setting aside enough cash to purchase the stock if assigned [1]. - For example, selling an October 17 put with a strike price of $17 could generate approximately $110 in premium, obligating the seller to buy 100 shares at that price if assigned [3]. Financial Metrics and Returns - The break-even price for this trade is calculated at $15.90, which is 10.5% below the stock's recent close [4]. - If the stock remains above $17 at expiration, the put expires worthless, yielding a 6.92% return on capital at risk, equating to around 84% on an annualized basis [4]. Risk Considerations - The maximum loss occurs if Oscar Health stock falls to zero, resulting in a loss of $1,590, although investors typically would exit before reaching this point [5]. - The risk profile of cash-secured puts is similar to outright stock ownership, with potential losses offset by the premium received [4]. Earnings and Ratings - Oscar Health has already reported its second-quarter earnings, eliminating earnings risk for this trade [6]. - Investor's Business Daily assigns Oscar Health a Composite Rating of 50 out of 99, with an Earnings Per Share Rating of 27 and a Relative Strength Rating of 73, ranking 43rd in its group [7].

Core Insights - Oscar Health (NYSE: OSCR) has seen a 21% increase since the strong buy rating, outperforming the S&P 500's 4% growth [1] - The company's valuation multiple stands at approximately 0.45x revenues, significantly lower than peers at 3.19x, indicating substantial upside potential [1] Company Analysis - Leadership & Management: Oscar Health demonstrates a proven track record in scaling businesses, effective capital allocation, and insider ownership [1] - Market Disruption & Competitive Positioning: The company benefits from a strong technology moat, first-mover advantage, and network effects that facilitate exponential growth [1] - Financial Health & Risk Management: Oscar Health maintains sustainable revenue growth, efficient cash flow, and a strong balance sheet, ensuring long-term survival [1] Investment Methodology - Valuation & Asymmetric Risk/Reward: The analysis includes revenue multiples compared to peers and DCF modeling, focusing on institutional backing and market sentiment [1] - Portfolio Construction & Risk Control: The investment strategy includes core positions (50-70%), growth bets (20-40%), and speculative investments (5-10%) to balance risk and reward [1]

Core Viewpoint - Oscar Health (NYSE: OSCR) has seen a 21% increase since the strong buy rating, outperforming the S&P 500's 4% growth, indicating significant market interest and potential [1] Company Analysis - Oscar Health's valuation multiple stands at approximately 0.45x revenues, significantly lower than its peers at 3.19x, suggesting considerable upside potential [1] - The company demonstrates a proven track record in scaling businesses, smart capital allocation, and insider ownership, which are critical for long-term success [1] - Consistent revenue growth and credible guidance are highlighted as key factors in Oscar's operational strategy [1] Market Positioning - Oscar Health benefits from a strong technology moat and first-mover advantage, which are essential for maintaining competitive positioning [1] - The company leverages network effects that drive exponential growth, particularly in high-growth industries [1] Financial Health - Oscar Health shows sustainable revenue growth with efficient cash flow management, indicating a robust financial health [1] - The company maintains a strong balance sheet and a long-term survival runway, which are vital for navigating market challenges [1] - Avoiding excessive dilution and financial weakness is a priority for the company, ensuring stability [1] Valuation and Risk/Reward - The analysis includes revenue multiples compared to peers and DCF modeling to assess valuation [1] - Institutional backing and market sentiment analysis are utilized to gauge the investment landscape [1] - The strategy emphasizes ensuring downside protection while capitalizing on significant upside potential [1] Portfolio Construction - The investment strategy includes core positions (50-70%) in high-confidence, stable plays, growth bets (20-40%) in high-risk, high-reward opportunities, and speculative investments (5-10%) in moonshot disruptors [1]

Group 1 - Babcock International Group has seen a stock price increase of 5.8% since the last report, aligning with overall stock market performance [1] - The company is positioned to capitalize on growth opportunities within the European defense sector [1] - The analysis is provided by an expert with a background in aerospace engineering, focusing on investment opportunities in the aerospace, defense, and airline industries [1] Group 2 - The investing group offers access to data analytics monitors to support investment decisions [1] - The analysis emphasizes the importance of data-informed insights in understanding industry developments and their potential impact on investment strategies [1]

Group 1 - Oscar Health Inc. has priced its offering of $355 million of 2.25% convertible senior subordinated notes due 2030, increasing the size from the previously announced $350 million [1] - The estimated net proceeds from the offering will be approximately $342.5 million, or about $395.8 million if the initial purchasers fully exercise their option to purchase additional notes [1][2] - The company plans to use the net proceeds for general corporate purposes, including AI initiatives, lowering care costs, and enhancing consumer healthcare experiences [2] Group 2 - The notes will accrue interest at a rate of 2.25% per annum, payable semi-annually starting March 1, 2026, and maturing on September 1, 2030 [3] - Noteholders can convert their notes only upon certain events before June 1, 2030, and may convert at any time thereafter [4] - The initial conversion rate is 40.2946 shares of class A common stock per $1,000 principal amount of notes, with an initial conversion price of approximately $24.82 per share, representing a premium of about 32.5% over the last reported sale price of $18.73 on September 15 [4] Group 3 - Oscar Health's stock is currently down 5.52% at $17.70 [5]