From Prescription To Profit: The Health Stock Blowing Up Right Now

30‑Second Take

Why now? Oscar Health Inc.’s Q1 earnings report showed a company at the peak of good health, with revenue growth exceeding 42% year-on-year.

Earnings-per-share (EPS) also grew from $0.77 to $1.10.

Interest in OSCR stock has also been boosted by the news that the Trump administration may pass a bill for Medicare Part E, allowing individuals and businesses to enroll independently in Medicare if desired.

Trade Setup

Time frame: Swing to medium-term
Edge type: Momentum breakout

Snapshot Table

Chart

5-Day Synopsis: OSCR stock has accumulated value sharply in the last five trading sessions, with a gain of 32.65%.

It’s riding a wave of investor demand after Democrats proposed a Medicare Part E bill, essentially giving all Americans access to Medicare and more affordable healthcare.

This momentum has triggered a rush of interest in OSCR, lifting it from $14.10 at opening on June 17 to a high of $22.65 on June 20.

Bull Case 

Core thesis: Established in 2012, Oscar Health is a health insurance provider that also offers its customers digital tools and resources to better manage their health.

Its options include rapid virtual care appointments with health professionals, while its Oscar + platform helps providers to transition to value-based care.

OSCR is quickly shifting from health insurer to a scalable health tech platform.

This is an especially fast-growing segment of the market as digital healthcare gains popularity and consumers are increasingly vocal about the need for change in the U.S. health insurance system. 

Catalysts: News that a voluntary Medicare Part E could be created is highly favorable to Oscar Health.

It’s already grown its existing Medicare Advantage business by 15% year-on-year, with Part E offering the potential to increase that figure substantially. 

This growth potential pairs perfectly with OSCR’s proprietary tech stack, which includes innovative member apps, provider tools, and faster claims processing.

This infrastructure is scalable, so as OSCR grows its coverage network and taps into new markets, it can expand its margins without investing in additional tech capability.  

Valuation upside: This stock has an analyst high target of $28 and a low of $12. Its current price of $22.35 is comfortably above the average target of $18.56.

Technical tailwind: Technical indicators point to continued bullish momentum, which could lead to further gains.

OSCR stock surged to a Relative Strength Index reading of 89 on Friday and has breached resistance levels with volume growth.

Bear Case 

Key risk: Oscar Health returned its first profit just last year.

However, this could be revered by a number of factors, including changes to policy (which may impact enrolment figures) or higher-than-expected claims numbers, putting downward pressure on stock prices. 

Macro/sector headwinds: As with other health insurance providers in the ACA marketplace, OSCR could face headwinds from changing policies and priorities under the Trump administration. 

Competitive threat: Legacy providers, such as UnitedHealth Group (UNH) and Cigna (CI) have much deeper pockets and vast networks of users.

This gives them the advantage when it comes to responding to market shifts and developing new digital tools and resources for their customers. 

Additionally, smaller competitors that also have a tech-first approach can pose a threat if they’re able to better differentiate their offering or beat OSCR to the punch when it comes to securing partnerships or investment. 

Crowded-trade concern: With relatively few institutional investors, OSCR stock is susceptible to any sudden reversal in sentiment.

That, or profit-taking, could trigger a pronounced downside.

Quick Checklist 

✅ Thesis still valid after today’s close
✅ Volume confirms move above key levels
✅ Catalyst date double-checked (June 22, 2025)

Deep‑Dive Links

• Q1 2025 Earnings Report 

• Analyst Ratings and Price Targets

• Short Interest Data

• Company Profile and Investor Relations

That’s all for today’s Everyday Alpha. We’ll have a new pick for you every morning before the market opens, so stay tuned!

Best Regards,
—Noah Zelvis
Everyday Alpha