Health insurer Oscar Health (OSCR) is emerging as a standout buy, with analysts pointing to record earnings growth and surging revenue as the company rapidly scales its membership base.
Widely-followed market analyst Mike Investing called OSCR a “generational buying opportunity,” citing a 42% revenue jump in the first quarter and projecting a 111% year-over-year surge in per-share earnings for Q2.
“Buying OSCR today is like buying HIMS at $14,” he said, referring to telehealth player Hims & Hers, which now trades near $60.
$OSCR is at a generational buying opportunity right now…
undefined Mike Investing (@MrMikeInvesting) June 15, 2025
With insane growth such as 111% expected Q2 EPS, 42% YoY Q1 Revenue of $3B this year $OSCR is an easy buy.
Buying $OSCR today is like buying $HIMS at $14.
$32+ incoming very soon.
Mark my words… pic.twitter.com/k78WiUmBlR
Yet, despite its blowout fundamentals, OSCR stock has barely moved over the past year, gaining just 4%.
Political risk keeps lid on OSCR stock
The muted price action has largely been driven by persistent regulatory overhangs, with investors wary of potential changes to healthcare law under President Trump’s administration.
As the University of Pennsylvania’s Regulatory Review highlighted, Trump has pledged to repeal and replace the Affordable Care Act (ACA), legislation that remains central to Oscar’s customer acquisition strategy.
Since the ACA was enacted, Republicans have attempted to dismantle the law more than 50 times, according to UPenn.
Despite the political noise, analysts argue Oscar’s underlying business momentum remains firmly intact, powered by rapid tech adoption and AI-driven efficiencies.
Blistering membership growth fuels earnings boom
As Investors Observer recently reported, Oscar delivered $275.3 million in profit on $3.05 billion in revenue in Q1, easily topping analyst forecasts.
Its paid membership base reached 2.04 million, nearly doubling in just 18 months.
On X, analyst Tech Investor noted that Oscar has grown membership at a 51% compound annual rate since 2019, which is staggering expansion for a health insurer.
$OSCR has been increasing its members at a 51% CAGR rate since 2019.
undefined Tech Investor (@Tech_Investor20) June 15, 2025
INSANE pic.twitter.com/f4ovh9wYhn
Thanks to this growth, Oscar’s revenue is now outpacing claims costs, allowing the company to dramatically widen profit margins.
Widely-followed Seeking Alpha analyst Steven Fiorillo described Oscar as potentially “the next growth monster,” with analysts projecting steep earnings growth over the next two years.
AI gives Oscar Health major edge
Oscar’s tech-driven approach has become a core part of its bullish thesis. The company’s “full-stack” AI-powered platform aims to modernize legacy insurance operations from end to end.
It uses AI for predictive analytics, early risk identification, and personalized patient outreach, helping reduce costly hospitalizations and streamline care delivery.
One standout product is Oscar’s Virtual Urgent Care chat, which triages patient symptoms in real time, reduces wait times, and helps optimize care pathways, all while lowering costs.
Oscar Health is set to report Q2 earnings on August 6.
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