Oscar Health, Inc. (OSCR) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this company have returned -19.6%, compared to the Zacks S&P 500 composite's -7.5% change. During this period, the Zacks Insurance - Multi line industry, which Oscar Health falls in, has gained 3.1%. The key question now is: What could be the stock's future direction?While media rel ...

Oscar Health, Inc. (OSCR) ended the recent trading session at $12.85, demonstrating a +0.16% swing from the preceding day's closing price. This change lagged the S&P 500's 1.08% gain on the day. Elsewhere, the Dow saw an upswing of 0.92%, while the tech-heavy Nasdaq appreciated by 1.41%.The the stock of company has fallen by 19.05% in the past month, lagging the Finance sector's loss of 4.3% and the S&P 500's loss of 8.26%.Investors will be eagerly watching for the performance of Oscar Health, Inc. in its u ...

The most recent trading session ended with Oscar Health, Inc. (OSCR) standing at $13.45, reflecting a +1.74% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.Coming into today, shares of the company had lost 1.78% in the past month. In that same time, the Finance sector lost 4.63%, while the S&P 500 lost 7.69%.Market participants will be closely fol ...

Group 1 - Hims & Hers (NYSE: HIMS) and Oscar Health (NYSE: OSCR) are identified as companies currently disrupting the US healthcare market [1] - MMMT Wealth, led by Oliver, focuses on investment strategies and stock analysis, primarily through insights gathered from investor calls, presentations, and financial news [1] - The analysis aims to form opinions on stocks with a time horizon of 3-5 years, emphasizing the potential life-changing impact of strategic investments [1] Group 2 - Oliver has 5 years of investing experience and 4 years as a CPA, highlighting his dedication and knowledge in the investment field [1] - The article encourages following Oliver's insights for valuable investment information, reflecting a commitment to thorough research on top businesses [1]

Membership Growth - As of December 31, 2024, Oscar has approximately 1.68 million effectuated members, a significant increase from 1,036,283 members in 2023, representing a growth of 62%[30] - Oscar's membership in Florida grew to 871,881 in 2024, up from 593,867 in 2023, marking a 47% increase[36] - The company has experienced significant member growth since its inception, but there are concerns about maintaining this growth and managing membership effectively[116] Financial Performance - For the year ended December 31, 2024, Oscar earned $9,512.3 million in premiums from the Centers for Medicare & Medicaid Services (CMS) and $799.3 million from members, totaling $10,311.6 million in premium revenue[31] - The company achieved profitability in 2024 on both a consolidated Adjusted EBITDA and net income basis, reflecting successful operational strategies[47] - For the year ended December 31, 2024, the company achieved consolidated net income of $26.1 million and consolidated Adjusted EBITDA of $199.2 million, marking the first profitability since inception in 2012[129] - The company derives nearly all of its revenue from direct policy premiums, which are primarily driven by the number of members covered by its health plans[116] - Approximately 92% of direct policy premiums for the year ended December 31, 2024, were subsidized by advanced premium tax credits (APTCs), including enhanced APTCs under the American Rescue Plan Act (ARPA)[132] Strategic Changes - Oscar exited the Medicare Advantage market before the 2024 plan year and ceased offering small group products as of December 15, 2024, indicating a strategic shift in market focus[30] - The company is focusing on Individual Coverage Health Reimbursement Arrangements (ICHRA) to expand individual insurance offerings beyond traditional ACA markets[48] - The company plans to exit the Medicare Advantage market for the 2024 plan year, which may impact its member base and revenue[110] Technology and Innovation - Oscar's technology platform serves nearly 500,000 client lives on its Campaign Builder platform, enhancing member engagement through predictive analytics[27] - The company is investing in AI technologies to enhance operational efficiencies and member personalization across its technology stack[45] - The company is investing in technology development, including artificial intelligence and machine learning, to enhance its operations and member engagement[129] Regulatory Environment - The company operates in a highly regulated environment, with approximately 97% of revenue derived from ACA-regulated health plans, making it vulnerable to changes in ACA regulations[131] - The ACA mandates a minimum Medical Loss Ratio (MLR) of 80% for the individual market, with some states like New York requiring an 82% MLR[83] - The company is subject to statutory risk-based capital (RBC) requirements, with expectations to meet or exceed all applicable mandatory RBC requirements as of December 31, 2024[77] - The company’s operations are subject to comprehensive federal, state, and local laws and regulations, which can vary significantly and impose additional burdens and costs[72] Customer Satisfaction - The net promoter score for Oscar reached 66 in Q4 2024, significantly higher than the industry average, indicating strong customer satisfaction[44] Workforce and Culture - Oscar employs approximately 2,400 full-time employees as of December 31, 2024, emphasizing a diverse workforce aligned with its mission[50] - The company aims to enhance transparency and systematic approaches in human capital frameworks, with approximately nine Employee Resource Groups (ERGs) established in 2024[56] Market Competition - The company competes in a highly competitive environment influenced by ongoing changes, including business consolidations and technological advances[58] - The majority of membership is acquired through brokers, with an increase in broker-acquired business in 2024 compared to 2023, reflecting a macro trend in the Health Insurance Marketplace[63] Risks and Challenges - The company faces challenges in accurately estimating incurred medical expenses, which could negatively affect its financial position and cash flows[120] - The company may incur significant expenses prior to generating revenue when entering new markets or launching new health plans[108] - The company is subject to extensive fraud, waste, and abuse laws, which may require remedial measures and could adversely affect its business[97] - The company faces potential operational costs and financial impacts due to misinterpretation or misapplication of new laws and regulations, which could also affect its ability to service existing +Oscar platform arrangements[143] Compliance and Security - The company maintains a HIPAA compliance program to adapt to new privacy and security regulations and monitor compliance[89] - The company has established security measures to protect its information systems from breaches and malicious activity, including encryption techniques for data[70] - The company must invest significant resources to comply with complex and changing regulations, which may result in increased capital requirements and potential sanctions[199] Future Outlook - The company anticipates that the impact on membership from the unwinding of Medicaid continuous enrollment will not be as significant as the growth experienced in plan year 2024[124] - The future elimination or reduction of enhanced APTCs could make coverage unaffordable for some individuals, negatively impacting overall participation in Health Insurance Marketplaces[132] - Changes in the U.S. health insurance market, including the introduction of a single-payer system, could materially harm the company's business and operating results[144]

Core Insights - Michael Burry, known for predicting the 2008 subprime mortgage crisis, achieved a 74.24% return on his stock portfolio in 2024, significantly outperforming the S&P 500 [1] Company Overview - Oscar Health, Inc. operates a direct-to-consumer digital platform for health insurance and has recently become profitable in Q1 2024 after struggling since its IPO in early 2021 [3][9] Stock Performance - Oscar Health stock (NYSE: OSCR) closed at $15.85 on February 18, up from $13.46, marking a 17.75% rally, which extended to a 23.84% increase by February 19, bringing year-to-date returns to 24.03% [4][5] Investment Activity - The surge in Oscar Health's stock price is attributed to investors buying at bargain prices after the stock hit a 12-month low of $13.06 on February 13 [5] - Following a Q4 earnings call on February 4, Oscar Health reported a double miss on revenues and earnings per share, leading to an attractive valuation for the stock [5][6] Valuation Metrics - Despite the recent surge, Oscar Health's forward price to earnings (PE) ratio stands at 24.03, indicating a potentially attractive investment opportunity [6] Burry's Holdings - Michael Burry holds 200,000 shares of OSCR, representing approximately 3.5% of his portfolio, with potential gains or losses depending on the acquisition price during Q4 [9]

Core Viewpoint - DJS Law Group is investigating claims against Oscar Health, Inc. for potential violations of securities laws following a disappointing earnings report that led to a significant drop in share price [1][2]. Investigation Details - The investigation is centered on whether Oscar Health made misleading statements or failed to disclose critical information to investors [2]. - Oscar Health reported a loss of $0.62 per share for the fourth quarter, which was greater than expected, contributing to a sharp decline in its stock price [2]. DJS Law Group's Focus - DJS Law Group aims to enhance investor returns through balanced counseling and aggressive advocacy, specializing in securities class actions and corporate governance litigation [3]. - The firm represents some of the largest hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [3].

Core Insights - The U.S. healthcare sector is experiencing rapid digital transformation, driven by regulatory changes, consumer demand, and technological advancements, particularly accelerated by the pandemic [1] - Oscar Health reported strong financial results for Q4 2024 and the full year, emphasizing its alignment with market trends towards tech-enabled healthcare experiences [2][3] Financial Performance - Oscar Health achieved total revenue of $9.2 billion for the fiscal year 2024, a 56.5% increase from the previous year, and reported a profit of $25 million despite a loss of $153.5 million in Q4 [3] - The company experienced significant membership growth, reaching approximately 1.7 million members by the end of 2024, up from 1 million at the end of 2023, primarily in the Individual and Small Group segments [6] Strategic Focus - Oscar Health's strategy centers on leveraging technology to enhance member experiences and streamline operations, utilizing a full-stack technology platform to provide superior engagement and clinical care [5] - The company has introduced a new performance metric, Earnings from Operations, and anticipates total revenue between $10 billion and $10.2 billion for 2025, with an MLR between 80.5% and 81.5% [8] Market Position - Oscar Health differentiates itself in the crowded insurance market through a tech-driven approach, focusing on mobile engagement, telehealth integration, and AI-powered decision-making [9] - The healthcare consumer is increasingly savvy, seeking providers that offer solid healthcare experiences and transparent cost management [10] Consumer Engagement - Oscar operates on a direct-to-consumer model with an emphasis on user-friendly technology, offering a range of digital health services through its app [11] - A report indicated that two-thirds of consumers use patient portals, with significant interest among non-users, highlighting the demand for digital health solutions [11]

Core Insights - Oscar Health, Inc. reported a quarterly loss of $0.62 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.58, but an improvement from a loss of $0.66 per share a year ago [1] - The company posted revenues of $2.39 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.79%, but showing significant growth from $1.43 billion year-over-year [2] - Oscar Health shares have increased approximately 24.6% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $2.8 billion, and for the current fiscal year, it is $0.77 on revenues of $11.65 billion [7] - The estimate revisions trend for Oscar Health is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which Oscar Health belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total Revenue for 2024 was $9.2 billion, a 56.5% increase year-over-year, driven by membership growth and strong retention [3]. - Adjusted EBITDA for 2024 was $199.2 million, an improvement of $244.5 million year-over-year [5]. - Net income attributable to Oscar for 2024 was $25.4 million, a $296.2 million improvement year-over-year [5]. - Net income for the year ended December 31, 2024, was $26,121, a turnaround from a net loss of $270,594 in 2023 [31]. - Adjusted EBITDA for the year ended December 31, 2024, was $199,234 thousand, a significant improvement from a loss of $45,238 thousand in 2023 [44]. Revenue Projections - For 2025, the Company anticipates Total Revenue of $11.2 billion to $11.3 billion [6]. - Earnings from Operations for 2025 are expected to be between $225 million and $275 million [6]. Membership Growth - As of December 31, 2024, total membership reached 1,676,970, up from 1,036,283 in 2023 [10]. Medical Loss Ratio - The Medical Loss Ratio for 2024 was 81.7%, a 10 basis points increase year-over-year [4]. - The Medical Loss Ratio for 2025 is expected to be between 80.7% and 81.7% [6]. - Medical Loss Ratio for Q4 2024 was 88.1%, compared to 86.4% in Q4 2023, indicating an increase in medical expenses relative to premiums [36]. Operating Expenses - Operating expenses for the year ended December 31, 2024, totaled $9,120,299, a significant increase from $6,098,484 in 2023 [26]. - SG&A expenses for the year ended December 31, 2024, were $1,755,565, compared to $1,425,766 in 2023, reflecting increased operational costs [26]. - Selling, general and administrative expenses for the year ended December 31, 2024, were $1,755,565 thousand, compared to $1,425,766 thousand in 2023, indicating an increase of approximately 23% [47]. Assets and Liabilities - Total assets increased to $4,840,496 as of December 31, 2024, compared to $3,601,480 in 2023 [28]. - Total liabilities rose to $3,824,071 in 2024, up from $2,795,363 in 2023 [28]. Premium Revenue - Premium revenue for the year ended December 31, 2024, was $8,971,259, up 57.5% from $5,686,069 in 2023 [26]. - Direct policy premiums for the year ended December 31, 2024, increased to $10,292,125 thousand, up from $6,418,872 thousand in 2023, representing a growth of approximately 60% [47]. Claims and Medical Expenses - Medical expenses for the year ended December 31, 2024, totaled $7,332,589 thousand, compared to $4,642,024 thousand in 2023, reflecting a year-over-year increase of about 58% [47]. - The company recorded direct claims incurred of $7,278,267 thousand for the year ended December 31, 2024, compared to $4,459,702 thousand in 2023, marking an increase of approximately 63% [47]. Cash and Shareholder Information - Cash and cash equivalents as of December 31, 2024, were $1,527,186, down from $1,870,315 in 2023 [28]. - Weighted average common shares outstanding for the year ended December 31, 2024, were 240,386, an increase from 221,655 in 2023 [26]. Other Financial Metrics - Interest expense for the year ended December 31, 2024, was $23,734 thousand, slightly down from $24,603 thousand in 2023 [44]. - Stock-based compensation for the year ended December 31, 2024, was $109,824 thousand, down from $159,683 thousand in 2023, indicating a reduction of about 31% [44]. - The net quota share impact for the year ended December 31, 2024, was a loss of $52,229 thousand, compared to a loss of $34,721 thousand in 2023 [47]. - Reinsurance recoverable as of December 31, 2024, was $291,537 thousand, an increase from $241,194 thousand in 2023 [47].