10 Michael Burry Stocks with Huge Upside Potential

6. Oscar Health, Inc. (NYSE:OSCR)

Scion Asset Management’s Q4 Stake: $2.68 million

Analyst Upside as of May 9: 28.03%

Number of Hedge Fund Holders: 107

Oscar Health, Inc. (NYSE:OSCR) is a health insurance company which makes use of a full-stack technology platform to offer and manage insurance. Its primary operations and services include health insurance plans, technology platform +Oscar, and member services. The company focuses on the health insurance sector through telemedicine, healthcare-focused technological interfaces, and transparent claims pricing systems.

On May 7, Oscar Health, Inc. (NYSE:OSCR) announced first-quarter revenue and earnings that surpassed analyst expectations. The company reported adjusted earnings per share of $0.92, exceeding the consensus estimate of $ 0.81. Revenue for the quarter was $3.05 billion, surpassing the forecast of $2.84 billion and representing a 42% year-over-year increase from the $2.14 billion in Q1 2024. As of March 31, the company had over 2 million members, up from 1.45 million the previous year.

Artificial Intelligence is another area of growth for the company. During Oscar Health’s fourth-quarter results call, CEO Mark Bertolini stated that the company is rapidly deploying artificial intelligence in additional areas of its business. He stated that last year, the company implemented AI in 11 new use cases. Ten further use cases are being planned for the first quarter of 2025.

Longleaf Partners Small-Cap Fund stated the following regarding Oscar Health, Inc. (NYSE:OSCR) in its Q4 2024 investor letter:

Oscar Health, Inc. (NYSE:OSCR) – Health insurance and software company Oscar was a top detractor for the quarter while remaining a top contributor for the year. The company delivered another strong quarter operationally, achieving over 60% year-over-year revenue and membership growth, while advancing toward its publicly stated goal of 5% operating income margins. Despite the operational progress, the Trump presidential win weighed on the stock price in the quarter due to added uncertainty around the future of the enhanced ACA subsidies set to expire at the end of 2025 and broader implications for the ACA itself. Oscar still has underappreciated non-earning assets in various regions at different stages of ramp-up, transitioning from investment mode in some areas to higher-margin operations in others. We view this as a long-term positive, highlighting the embedded long-term growth potential at Oscar. While election-related news contributed to stock volatility in the second half of the year, we capitalized on the volatility by strategically trimming and adding to our position. It was powerful to see both co-founder Josh Kushner and CEO Mark Bertolini (via his foundation) each purchase more than $10 million worth of stock in the wake of the election selloff.”