Is OSCR a good stock to buy? We came across a bullish thesis on Oscar Health, Inc. on Deep Value Returns’s Substack. In this article, we will summarize the bulls’ thesis on OSCR. Oscar Health, Inc.’s share was trading at $27.22 as of June 9th.
Wichy/Shutterstock.com
Oscar Health, Inc. operates as a healthcare technology company in the United States. OSCR is increasingly framed as a turnaround story entering a decisive profitability inflection point after a volatile period that left investors frustrated through 2025. Despite sustained skepticism and underperformance over the past year, the core investment case argues operational issues that weighed on results have largely been resolved, leaving the business structurally reset and positioned for a sharp earnings acceleration.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
Management targets about $800 million in operating earnings by 2026, marking a transition from persistent losses and volatility to a more durable cash-generative profile. The market continues to anchor on fears that growth will decelerate in 2027, creating a valuation overhang that the bull case argues is already excessively discounted. In this view, sentiment has become detached from fundamentals, as near-term profitability inflection is not being appropriately reflected in Oscar Health’s valuation.
The company’s trajectory is increasingly defined by improving underwriting discipline, better cost control, and a more stable membership base, supporting sustained margin expansion into 2026. As these improvements flow through the income statement, Oscar Health is expected to re-rate as investors gain confidence in earnings durability rather than focusing on distant normalization risks.
If execution aligns, the stock is projected to reach $30 by end-2026, implying a significant re-rating from current levels and highlighting a compelling risk-reward setup. Even with forward growth moderation, the current price is viewed as overly conservative, offering investors exposure to a business transitioning into a structurally profitable healthcare platform with improving visibility and reduced downside risk over time as catalysts materialize.
Previously, we covered a bullish thesis on Oscar Health, Inc. (OSCR) by convexititties in March 2025, which highlighted ACA subsidy resilience fears, AI-driven competitive advantages, and a $30 price target driven by EPS expansion. OSCR’s stock price has appreciated by approximately 76.63% since our coverage. Deep Value Returns shares a similar view but emphasizes a turnaround-driven profitability inflection, highlighting resolved operational issues and management’s $800M operating earnings target by 2026.
Oscar Health, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held OSCR at the end of the first quarter which was 47 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.
