Oscar Health, Inc. (OSCR) shares soared 7.8% in the last trading session to close at $16.11. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 14.7% loss over the past four weeks.
The surge was likely driven by reports that lawmakers are proposing a measure allowing individuals and employers to voluntarily enroll in a revamped version of Medicare.
Oscar noted about 12% of household income is spent on employer-sponsored health plans, highlighting a substantial opportunity to better meet consumer demand for affordable healthcare solutions. Leveraging its deep expertise in the ACA marketplace, OSCR is well-equipped to tap into this growing trend.
The company’s growth strategy aims to build sustainable, scalable, and market-leading operations, deliver an exceptional member experience, accelerate technological advancements, and introduce innovative offerings—all geared toward expanding its footprint in the individual market and boosting long-term performance.
This company is expected to post quarterly earnings of $0.34 per share in its upcoming report, which represents a year-over-year change of +70%. Revenues are expected to be $2.86 billion, up 29% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Oscar Health, the consensus EPS estimate for the quarter has been revised 0.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on OSCR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Oscar Health is part of the Zacks Insurance - Multi line industry. MBIA (MBI), another stock in the same industry, closed the last trading session 2.5% lower at $4.22. MBI has returned -6.7% in the past month.
For MBIA, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.08. This represents a change of +97.2% from what the company reported a year ago. MBIA currently has a Zacks Rank of #4 (Sell).
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Oscar Health, Inc. (OSCR): Free Stock Analysis Report MBIA, Inc. (MBI): Free Stock Analysis Report Viper Energy Inc. (VNOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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