Oscar Health, Inc. (OSCR): A Bull Case Theory

We came across a bullish thesis on Oscar Health, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on OSCR. Oscar Health, Inc.'s share was trading at $17.97 as of November 28th.

Oscar Health, Inc. operates as a healthcare technology company in the United States. OSCR is positioned to benefit from a structural shift in the U.S. healthcare system, as evidenced by a rising medical loss ratio (MLR) driven by higher average market morbidity. The increase in illness among ACA members, attributed to a stealth pandemic of spike protein toxicity and Lyme infections, points to a growing need for innovative healthcare solutions beyond conventional medicine. Despite short-term losses and a 12-point YoY rise in MLR, Oscar remains structurally healthy, with Q2 2025 revenue reaching $2.9 billion, up 29% YoY, and its subscriber base growing 28% to over 2 million.

The company’s platform, which simplifies navigation of the insurance system and continues to improve user value, is well-positioned to capture this growing demand. Oscar has a history of successfully re-pricing its book to align with market dynamics, and its excess capital of $577 million provides a cushion to absorb temporary losses while preparing for rate increases in 2026. Operating leverage gains are evident, with SG&A ratios trending down despite short-term fluctuations. The stock trades below 0.5 times sales due to political risk concerns around ACA subsidy renewals, which appear unlikely to materialize, creating substantial upside potential.

Complementing Oscar’s positioning, Hims is emerging as a leader in precision medicine, offering solutions that address the underlying molecular drivers of chronic illness. Together, these companies highlight a broader market opportunity driven by rising healthcare complexity, structural tailwinds, and growing demand for innovative solutions, presenting a compelling investment case with significant long-term upside.

Previously we covered a bullish thesis on Oscar Health, Inc. (OSCR) by convexititties in March 2025, which highlighted the company’s deep discount due to ACA political risk, strong management, AI-driven technology stack, and potential re-rating as market share grows. The company's stock price has appreciated approximately by 16.61% since our coverage. The thesis still stands as Oscar remains structurally healthy and operationally resilient. Antonio Linares shares a similar but emphasizes rising medical loss ratios and structural healthcare tailwinds.

Oscar Health, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held OSCR at the end of the second quarter which was 41 in the previous quarter. While we acknowledge the potential of OSCR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.