Is OSCR a good stock to buy? We came across a bullish thesis on Oscar Health, Inc. on FJ Research’s Substack. In this article, we will summarize the bulls’ thesis on OSCR. Oscar Health, Inc.’s share was trading at $12.21 as of March 23rd.
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Oscar Health, Inc. operates as a healthcare technology company in the United States. OSCR is emerging as a scaled, infrastructure-like healthcare platform, moving far beyond its earlier perception as a tech-enabled insurance startup. With 3.4 million members as of February 2026, the company has achieved meaningful national scale, enhancing risk pooling, pricing power, and operating leverage—key advantages in the insurance industry.
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Management’s guidance of $18.7 to $19.0 billion in 2026 revenue, representing 61% year-over-year growth, highlights rare acceleration at scale. More importantly, Oscar’s market share expansion from 17% to 30% across its footprint signals strong product-market fit, as customers actively shift away from incumbents in a traditionally sticky industry.
Operational efficiency is also improving materially, with SG&A projected at 15.8% to 16.3% in 2026, reflecting significant margin expansion driven by operating leverage, better marketing efficiency, and returns on technology investments. The company’s AI-driven systems are enhancing both cost structure and customer experience, reinforcing a growing technological moat. Meanwhile, Oscar’s balance sheet stands out, with $5.5 billion in cash and investments against a market capitalization of roughly $3 billion, providing substantial downside protection and strategic flexibility.
Profitability is increasingly tangible, with management expecting a $750 million improvement in operating earnings, signaling a transition toward sustainable profitability and potential valuation rerating. Additionally, Oscar is well-positioned to benefit from the long-term shift toward ICHRA-based healthcare models, creating a structural growth tailwind. Overall, the company combines scale, improving margins, technological leverage, and a strong balance sheet, while still trading at a valuation that does not fully reflect its evolving fundamentals, offering a compelling asymmetric investment opportunity.
Previously, we covered a bullish thesis on Oscar Health, Inc. (OSCR) by convexititties in March 2025, which highlighted regulatory overhang concerns around the ACA, insider buying confidence, strong leadership, and AI-driven competitive advantages supporting multiple expansion. OSCR’s stock price has depreciated by approximately 20.76% since our coverage due to investor concerns about medical cost trends and ACA margin sustainability, in addition to broader volatility across U.S. health-insurance and managed-care stocks. FJ Research shares a similar view but emphasizes on scale-driven operating leverage, improving profitability, and balance sheet strength.
Oscar Health, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 47 hedge fund portfolios held OSCR at the end of the fourth quarter which was 40 in the previous quarter. While we acknowledge the risk and potential of OSCR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OSCR and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
