Core Insights - Michael Burry, known for predicting the 2008 subprime mortgage crisis, achieved a 74.24% return on his stock portfolio in 2024, significantly outperforming the S&P 500 [1] Company Overview - Oscar Health, Inc. operates a direct-to-consumer digital platform for health insurance and has recently become profitable in Q1 2024 after struggling since its IPO in early 2021 [3][9] Stock Performance - Oscar Health stock (NYSE: OSCR) closed at $15.85 on February 18, up from $13.46, marking a 17.75% rally, which extended to a 23.84% increase by February 19, bringing year-to-date returns to 24.03% [4][5] Investment Activity - The surge in Oscar Health's stock price is attributed to investors buying at bargain prices after the stock hit a 12-month low of $13.06 on February 13 [5] - Following a Q4 earnings call on February 4, Oscar Health reported a double miss on revenues and earnings per share, leading to an attractive valuation for the stock [5][6] Valuation Metrics - Despite the recent surge, Oscar Health's forward price to earnings (PE) ratio stands at 24.03, indicating a potentially attractive investment opportunity [6] Burry's Holdings - Michael Burry holds 200,000 shares of OSCR, representing approximately 3.5% of his portfolio, with potential gains or losses depending on the acquisition price during Q4 [9]

Core Viewpoint - DJS Law Group is investigating claims against Oscar Health, Inc. for potential violations of securities laws following a disappointing earnings report that led to a significant drop in share price [1][2]. Investigation Details - The investigation is centered on whether Oscar Health made misleading statements or failed to disclose critical information to investors [2]. - Oscar Health reported a loss of $0.62 per share for the fourth quarter, which was greater than expected, contributing to a sharp decline in its stock price [2]. DJS Law Group's Focus - DJS Law Group aims to enhance investor returns through balanced counseling and aggressive advocacy, specializing in securities class actions and corporate governance litigation [3]. - The firm represents some of the largest hedge funds and alternative asset managers, emphasizing the value of litigation claims as significant assets [3].

Core Insights - The U.S. healthcare sector is experiencing rapid digital transformation, driven by regulatory changes, consumer demand, and technological advancements, particularly accelerated by the pandemic [1] - Oscar Health reported strong financial results for Q4 2024 and the full year, emphasizing its alignment with market trends towards tech-enabled healthcare experiences [2][3] Financial Performance - Oscar Health achieved total revenue of $9.2 billion for the fiscal year 2024, a 56.5% increase from the previous year, and reported a profit of $25 million despite a loss of $153.5 million in Q4 [3] - The company experienced significant membership growth, reaching approximately 1.7 million members by the end of 2024, up from 1 million at the end of 2023, primarily in the Individual and Small Group segments [6] Strategic Focus - Oscar Health's strategy centers on leveraging technology to enhance member experiences and streamline operations, utilizing a full-stack technology platform to provide superior engagement and clinical care [5] - The company has introduced a new performance metric, Earnings from Operations, and anticipates total revenue between $10 billion and $10.2 billion for 2025, with an MLR between 80.5% and 81.5% [8] Market Position - Oscar Health differentiates itself in the crowded insurance market through a tech-driven approach, focusing on mobile engagement, telehealth integration, and AI-powered decision-making [9] - The healthcare consumer is increasingly savvy, seeking providers that offer solid healthcare experiences and transparent cost management [10] Consumer Engagement - Oscar operates on a direct-to-consumer model with an emphasis on user-friendly technology, offering a range of digital health services through its app [11] - A report indicated that two-thirds of consumers use patient portals, with significant interest among non-users, highlighting the demand for digital health solutions [11]

Core Insights - Oscar Health, Inc. reported a quarterly loss of $0.62 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.58, but an improvement from a loss of $0.66 per share a year ago [1] - The company posted revenues of $2.39 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.79%, but showing significant growth from $1.43 billion year-over-year [2] - Oscar Health shares have increased approximately 24.6% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.63 on revenues of $2.8 billion, and for the current fiscal year, it is $0.77 on revenues of $11.65 billion [7] - The estimate revisions trend for Oscar Health is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Insurance - Multi line industry, to which Oscar Health belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total Revenue for 2024 was $9.2 billion, a 56.5% increase year-over-year, driven by membership growth and strong retention [3]. - Adjusted EBITDA for 2024 was $199.2 million, an improvement of $244.5 million year-over-year [5]. - Net income attributable to Oscar for 2024 was $25.4 million, a $296.2 million improvement year-over-year [5]. - Net income for the year ended December 31, 2024, was $26,121, a turnaround from a net loss of $270,594 in 2023 [31]. - Adjusted EBITDA for the year ended December 31, 2024, was $199,234 thousand, a significant improvement from a loss of $45,238 thousand in 2023 [44]. Revenue Projections - For 2025, the Company anticipates Total Revenue of $11.2 billion to $11.3 billion [6]. - Earnings from Operations for 2025 are expected to be between $225 million and $275 million [6]. Membership Growth - As of December 31, 2024, total membership reached 1,676,970, up from 1,036,283 in 2023 [10]. Medical Loss Ratio - The Medical Loss Ratio for 2024 was 81.7%, a 10 basis points increase year-over-year [4]. - The Medical Loss Ratio for 2025 is expected to be between 80.7% and 81.7% [6]. - Medical Loss Ratio for Q4 2024 was 88.1%, compared to 86.4% in Q4 2023, indicating an increase in medical expenses relative to premiums [36]. Operating Expenses - Operating expenses for the year ended December 31, 2024, totaled $9,120,299, a significant increase from $6,098,484 in 2023 [26]. - SG&A expenses for the year ended December 31, 2024, were $1,755,565, compared to $1,425,766 in 2023, reflecting increased operational costs [26]. - Selling, general and administrative expenses for the year ended December 31, 2024, were $1,755,565 thousand, compared to $1,425,766 thousand in 2023, indicating an increase of approximately 23% [47]. Assets and Liabilities - Total assets increased to $4,840,496 as of December 31, 2024, compared to $3,601,480 in 2023 [28]. - Total liabilities rose to $3,824,071 in 2024, up from $2,795,363 in 2023 [28]. Premium Revenue - Premium revenue for the year ended December 31, 2024, was $8,971,259, up 57.5% from $5,686,069 in 2023 [26]. - Direct policy premiums for the year ended December 31, 2024, increased to $10,292,125 thousand, up from $6,418,872 thousand in 2023, representing a growth of approximately 60% [47]. Claims and Medical Expenses - Medical expenses for the year ended December 31, 2024, totaled $7,332,589 thousand, compared to $4,642,024 thousand in 2023, reflecting a year-over-year increase of about 58% [47]. - The company recorded direct claims incurred of $7,278,267 thousand for the year ended December 31, 2024, compared to $4,459,702 thousand in 2023, marking an increase of approximately 63% [47]. Cash and Shareholder Information - Cash and cash equivalents as of December 31, 2024, were $1,527,186, down from $1,870,315 in 2023 [28]. - Weighted average common shares outstanding for the year ended December 31, 2024, were 240,386, an increase from 221,655 in 2023 [26]. Other Financial Metrics - Interest expense for the year ended December 31, 2024, was $23,734 thousand, slightly down from $24,603 thousand in 2023 [44]. - Stock-based compensation for the year ended December 31, 2024, was $109,824 thousand, down from $159,683 thousand in 2023, indicating a reduction of about 31% [44]. - The net quota share impact for the year ended December 31, 2024, was a loss of $52,229 thousand, compared to a loss of $34,721 thousand in 2023 [47]. - Reinsurance recoverable as of December 31, 2024, was $291,537 thousand, an increase from $241,194 thousand in 2023 [47].

Stock Performance - Oscar Health Inc ended the recent trading session at $16 28, showing a -0 12% change from the previous day's closing price [1] - The stock underperformed compared to the S&P 500 (0 92% gain), Dow (0 31% gain), and Nasdaq (2 03% gain) on the same day [1] - Over the past month, the company's shares gained 20 03%, outperforming the Finance sector (4 35% gain) and the S&P 500 (0 81% gain) [1] Earnings and Revenue Expectations - The company's upcoming earnings report is scheduled for February 4, 2025 [2] - Analysts expect Oscar Health Inc to post earnings of -$0 58 per share, representing a 12 12% year-over-year growth [2] - Revenue is projected to be $2 46 billion, indicating a 71 91% increase compared to the same quarter of the previous year [2] Analyst Estimates and Stock Performance - Recent changes in analyst estimates often reflect shifts in near-term business trends [3] - Positive revisions in estimates typically indicate analysts' confidence in the company's business performance and profit potential [3] - Adjustments in estimates are directly associated with imminent stock price performance [4] Valuation Metrics - Oscar Health Inc has a Forward P/E ratio of 21 31, which is higher than its industry's Forward P/E of 9 98 [6] - The company's PEG ratio is 0 65, lower than the industry average of 1 09 for Insurance - Multi line stocks [6] Industry Ranking - The Insurance - Multi line industry is part of the Finance sector and has a Zacks Industry Rank of 89, placing it in the top 36% of all industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7] Zacks Rank System - Oscar Health Inc currently has a Zacks Rank of 3 (Hold) [5] - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 ranked stocks delivering an average annual return of +25% since 1988 [5]

Market Performance - Oscar Health, Inc (OSCR) closed at $15 65, with a -1 57% movement compared to the previous day, lagging behind the S&P 500's 0 88% gain, the Dow's 1 24% gain, and the Nasdaq's 0 65% gain [1] - Over the past month, OSCR shares gained 16 91%, outperforming the Finance sector's 3 25% gain and the S&P 500's 1 17% gain [1] Earnings and Revenue Expectations - The company is expected to report earnings on February 4, 2025, with an EPS of -$0 58, up 12 12% from the prior-year quarter [2] - Revenue is expected to be $2 46 billion, a 71 91% increase compared to the year-ago quarter [2] Analyst Estimates and Revisions - Recent adjustments to analyst estimates reflect shifting short-term business dynamics, with positive revisions indicating optimism about the company's business and profitability [3] - Estimate revisions are directly related to near-term stock moves, and the Zacks Rank model considers these changes to provide actionable ratings [4] Valuation Metrics - OSCR currently has a Forward P/E ratio of 20 78, indicating a premium compared to its industry's Forward P/E of 9 74 [6] - The company's PEG ratio is 0 64, lower than the Insurance - Multi line industry average of 1 05, suggesting potential undervaluation relative to earnings growth [7] Industry Ranking - The Insurance - Multi line industry, part of the Finance sector, has a Zacks Industry Rank of 142, placing it in the bottom 44% of all industries [7] - The top 50% of industries outperform the bottom half by a factor of 2 to 1, based on the Zacks Industry Rank [8]

Earnings and Revenue Estimates - Full-year Zacks Consensus Estimates for Oscar Health, Inc predict earnings of -$0 01 per share and revenue of $9 25 billion, representing year-over-year changes of +99 18% and +57 71% respectively [1] - The upcoming earnings release is expected to show earnings of -$0 58 per share, marking a year-over-year growth of 12 12%, with revenue estimated at $2 46 billion, a 71 91% increase compared to the year-ago quarter [6] Stock Performance - Oscar Health, Inc closed at $13 58 in the latest trading session, marking a -1 59% move from the previous day, lagging behind the S&P 500's daily loss of 1 07%, the Dow's loss of 0 97%, and the Nasdaq's loss of 1 19% [5] - Prior to today's trading, the company's shares had lost 20 37% over the past month, underperforming the Finance sector's loss of 4 94% and the S&P 500's loss of 0 36% [10] Industry and Sector Analysis - The Insurance - Multi line industry, part of the Finance sector, currently has a Zacks Industry Rank of 69, placing it in the top 28% of all 250+ industries [3] - The Zacks Industry Rank measures the strength of individual industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [9] Analyst Estimates and Zacks Rank - Recent modifications to analyst estimates for Oscar Health, Inc often reflect short-term business patterns, with upbeat changes indicating a favorable outlook on the company's business health and profitability [7] - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a notable track record of outperformance, with 1 rated stocks producing an average annual return of +25% since 1988 Oscar Health, Inc currently holds a Zacks Rank of 3 (Hold) [8]

Investors might want to bet on Oscar Health, Inc. (OSCR) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.T ...

Earnings Call Overview - Oscar Health Inc held its Q3 2024 earnings conference call on November 7, 2024, at 8:00 AM ET [1] - The call was hosted by CEO Mark Bertolini and CFO Scott Blackley, with Chris Potochar, VP of Treasury and IR, facilitating the introduction [3] - Participants included analysts from Wells Fargo, Raymond James, Piper Sandler, Nephron Research, Baird, and Bank of America [1] Access to Earnings Information - The earnings call was accessible through the company's Investor Relations website at ir hioscar com [3] - Full details of the results and additional management commentary were available in the earnings release on the same website [3] Forward-Looking Statements - Remarks made during the call about the future were classified as forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 [4] - Actual results may differ materially from these forward-looking statements due to various important factors discussed in the company's quarterly report on Form 10-Q for the period ended June 30, 2024, and other filings [4]