Here’s why Josh Kushner’s Oscar Health (OSCR) stock is soaring
Oscar Health (NASDAQ: OSCR) stock price is firing on all cylinders this year. It has soared by 120%, making it one of the best performers in the Russell 2000 index. Also, it has outperformed all leading indices like the Nasdaq 100 and S&P 500 indices.
Oscar Health is doing well
Oscar Health is a technology company that was started by Joshua Kushner to help people shop for health insurance. Joshua is the brother to Jared Kushner, the husband to Ivanka Trump and he runs Thrive Capital, a company with over $14 billion in assets. Thrive owns about 4.76 million shares in Oscar.
Oscar has become a highly popular company with over 1.3 million customers in the United States. It has made several strides that have helped to boost its stock price and profitability.
For example, the company has exited California in 2023 after constantly missing its expectations. Also, earlier this year, it stopped offering Medicare Advantage in New York and Texas and is in the process of pausing its +Oscar service.
All these actions have helped it to grow its revenue and profits. Its Q1 revenue jumped by 46% to $2.1 billion while its medical loss ratio narrowed to 74.2%. Most importantly, it turned its first profit in the first quarter as its net income rose to $177 million from a loss of $39 million a year earlier.
Analysts are optimistic about Oscar Health’s prospects, which explains why its stock has jumped sharply from its lowest level in 2023. The average estimate is that its revenue for the year will move to $8.3 billion followed by $9.5 billion in 2025. These will be strong figures for a company that made $5.8 billion in 2023 and $475 million in 2019.
Oscar Health also has a clean balance sheet with over $2.2 billion in cash and equivalents. It also has over $616 million in short-term investments, meaning that it has little dilution risks.
It is worth noting that Oscar is not the only online insurance company that has surged. Root’s stock price has soared by over 300% this year
Oscar Health stock price forecast
Turning to the weekly chart, we see that the OSCR share price has been in a strong bull run since 2023. It has soared from a low of $2.11 in December 2022 to a high of $20. Most recently, it has risen for five straight weeks and is now trading at its highest point since July 2021.
The stock has remained above the 25-week moving average and the crucial resistance level at $18.48, its highest swing on February 12th. It has jumped above the 50% Fibonacci Retracement level.
Therefore, the outlook for the stock is bullish, with the next point to watch being at the 61.8% Fibonacci Retracement point at $23.70. That price is about 20% above the current level.
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