Last Updated: 09 Nov 2024
Executive Summary
Oscar Health Inc. (OSCR) is a health insurance provider that has experienced strong revenue growth in recent quarters. The company's fundamentals are improving, with increasing profit margins and return on assets. However, the stock price has declined significantly in recent months due to concerns about the company's profitability and competition in the healthcare industry.
Company Overview
Oscar Health Inc. offers health insurance products and services to individuals, families, and businesses in the United States. The company was founded in 2012 and is headquartered in New York City. Oscar Health has a market capitalization of $3.3 billion and is listed on the New York Stock Exchange.
Fundamental Analysis
Oscar Health's revenue has grown rapidly in recent years, increasing from $1.6 billion in 2019 to $8.2 billion in 2023. The company's gross profit margin has also improved, from 32.5% in 2019 to 35.7% in 2023. However, Oscar Health has yet to achieve profitability, and its net income loss widened from $185 million in 2019 to $289 million in 2023.
Oscar Health's balance sheet is relatively strong, with $1.5 billion in cash and equivalents and $1.2 billion in debt. The company's book value is $4.709 per share.
Technical Analysis
Oscar Health's stock price has declined significantly in recent months, from a high of $23.79 in September 2022 to a low of $13.54 in February 2023. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is at 30.24, indicating that the stock is oversold.
Short Term Outlook
The short-term outlook for Oscar Health is uncertain. The company's stock price has been declining, and it is unclear when it will find support. The company's fundamentals are improving, but it is still not profitable. Investors should be cautious about investing in Oscar Health in the short term.
Long Term Outlook
The long-term outlook for Oscar Health is more positive. The company is well-positioned to benefit from the growing demand for health insurance in the United States. The company's strong balance sheet and improving fundamentals should allow it to weather the current challenges and emerge as a profitable company in the long term.
Analyst Recommendations
Analysts are mixed on Oscar Health. Five analysts have a buy rating on the stock, one has a hold rating, and none have a sell rating. The average analyst target price is $23.56, which represents a potential upside of 74% from the current price.
