Oscar Health has gotten torched over the last six months - since September 2025, its stock price has dropped 32.6% to $12.19 per share. This may have investors wondering how to approach the situation.
Following the pullback, is this a buying opportunity for OSCR? Find out in our full research report, it’s free.
Why Is OSCR a Good Business?
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE: OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
1. Skyrocketing Revenue Shows Strong Momentum
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Oscar Health’s sales grew at an incredible 49% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
2. Adjusted Operating Margin Rising, Profits Up
Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.
Oscar Health’s adjusted operating margin rose by 16.7 percentage points over the last five years, as its sales growth gave it operating leverage. Although its adjusted operating margin for the trailing 12 months was negative 3.4%, we’re confident it can one day reach sustainable profitability.
3. Increasing Free Cash Flow Margin Juices Financials
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
As you can see below, Oscar Health’s margin expanded by 16.7 percentage points over the last five years. This is encouraging because it gives the company more optionality. Oscar Health’s free cash flow margin for the trailing 12 months was 9%.
Final Judgment
These are just a few reasons why Oscar Health ranks near the top of our list. After the recent drawdown, the stock trades at 31.3× forward P/E (or $12.19 per share). Is now the time to initiate a position? See for yourself in our in-depth research report, it’s free.
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