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

We came across a bullish thesis on Oscar Health, Inc. (OSCR) on FJ Research’s Substack. In this article, we will summarize the bulls’ thesis on OSCR. Oscar Health, Inc. (OSCR)'s share was trading at $14.15 as of 4^th June. OSCR’s trailing and forward P/E were 35.38 and 19.84 respectively according to Yahoo Finance.

Oscar Health represents a bold attempt to overhaul the dysfunctional infrastructure of the $4.5 trillion American healthcare industry, which is plagued by inefficiencies, misaligned incentives, and staggering administrative costs. Unlike traditional insurers or consumer-facing telehealth startups like Hims and Hers, Oscar is rebuilding the backend—the core logic layer that powers healthcare transactions.

It's a fully integrated, tech-driven insurance stack spans claims processing, risk scoring, provider networks, and member engagement, all powered by proprietary software and increasingly AI. This infrastructure is not only used internally but is also being licensed externally, giving Oscar the potential to become the AWS of health insurance.

The company is especially well-positioned in the rapidly evolving Affordable Care Act (ACA) marketplace, which has expanded beyond low-income households to include a broader swath of middle-income Americans, thanks to enhanced subsidies under recent legislation. As legacy insurers retreat from this complex segment, Oscar’s low admin costs, member engagement capabilities, and tech adaptability put it in pole position to seize market share.

Currently active in 20 states, Oscar is on a clear growth trajectory. Despite its compelling fundamentals, the market still undervalues the company, with its stock trading below IPO levels. However, Oscar’s long-term vision is backed by Thrive Capital and Josh Kushner, investors with a track record of identifying transformative platforms. Their continued involvement signals deep conviction and a willingness to drive strategic execution. With structural tailwinds, scalable infrastructure, and a highly engaged investor base, Oscar Health offers a mispriced opportunity in one of America’s most essential yet broken industries.

Previously, we covered a bullish thesis on Oscar Health (OSCR) by convexititties in March 2025, focusing on political overhangs and insider buying. FJ Research’s June 2025 thesis complements this by highlighting Oscar’s AI-powered backend platform and ACA market leadership, reinforcing the long-term upside case.

Oscar Health, Inc. (OSCR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held OSCR at the end of the first quarter which was 43 in the previous quarter. While we acknowledge the risk and potential of OSCR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.