Strength Seen in Oscar Health (OSCR): Can Its 18.7% Jump Turn into More Strength?
Oscar Health, Inc. (OSCR) shares rallied 18.7% in the last trading session to close at $20.67. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.7% loss over the past four weeks.
Oscar noted about 11.6% of household income is spent on employer plans. Thus, there remains a sea of opportunities for Oscar to address consumers’ expectations for affordable healthcare. By leveraging deep ACA marketplace expertise, OSCR is well-poised to address this healthcare trend.
Its growth strategy encompasses having a market-leading, sustainable, scalable operations, build on superior member experience, accelerate technology developments and innovate market offerings to expand the individual market should drive performance.
OSCR targets at least 20% revenue CAGR and 5% operating margin by 2027 with upside if enhanced subsidies are extended. It expects pricing discipline and administrative cost efficiencies to drive margin expansion.
This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of +31%. Revenues are expected to be $2.32 billion, up 61.4% 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 3.4% 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 a member of the Zacks Insurance - Multi line industry. One other stock in the same industry, Assurant (AIZ), finished the last trading session 1.3% lower at $189.32. AIZ has returned 4% over the past month.
Assurant's consensus EPS estimate for the upcoming report has changed +2.9% over the past month to $3.29. Compared to the company's year-ago EPS, this represents a change of -23.3%. Assurant currently boasts a Zacks Rank of #1 (Strong Buy).
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