Oscar Health, Inc. (NYSE:OSCR) shares are up on Thursday following a significant rally driven by legislative developments. The stock is experiencing a boost as the U.S. House of Representatives recently passed a bill extending healthcare subsidies under the Affordable Care Act, which is expected to positively impact insurers like Oscar Health that rely heavily on the individual ACA exchange market. Here’s what investors need to know.
- Oscar Health stock is charging ahead with explosive momentum. What’s behind OSCR gains?
Barclays’ Upgrade Sparks Oscar Health’s Surge
Thursday’s surge also comes after Barclays recently upgraded the stock to Equal-Weight from Underweight, raising its price target from $13 to $18, reflecting a more favorable outlook for the company.
The passage of the healthcare subsidy extension is crucial for Oscar Health, as it helps mitigate the risk of rising premiums that could drive away healthy subscribers. Without this extension, the company faced potential challenges that could jeopardize its business model, making this legislative win particularly impactful.
Oscar’s Journey From Insurtech Disruptor To Turnaround Story
Since going public in 2021, Oscar Health has been one of the more volatile names in the health-insurance space. The company entered the market as a tech-driven insurtech focused on the Affordable Care Act exchanges, prioritizing rapid membership growth over profitability.
That strategy led to steep losses and sharp swings in OSCR shares as investors assess the durability of its model and its dependence on government-backed subsidies.
Over time, Oscar has shifted toward disciplined underwriting, exiting unprofitable markets and emphasizing operating leverage as its membership base scales.
For investors, this history offers both caution and opportunity: OSCR has a track record of large drawdowns, but it also has periods of strong rallies when sentiment turns toward profitable growth and regulatory support looks secure.
Short-Term Strength Signals Bullish Momentum
Currently, Oscar Health is trading 13.8% above its 20-day simple moving average (SMA) and 2.3% above its 100-day SMA, indicating short-term strength. Over the past 12 months, the stock has increased by 16.29% and is positioned closer to its 52-week highs than lows, reflecting a positive longer-term trend.
The RSI is at 53.56, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, the MACD is above its signal line, indicating bullish momentum.
The combination of neutral RSI and bullish MACD suggests mixed momentum, providing a balanced outlook for traders.
- Key Resistance: $19.00
- Key Support: $14.50
Is A Major Earnings Surprise On The Horizon?
Investors are looking ahead to the next earnings report on February 10.
- EPS Estimate: Loss of 89 cents (Down from a loss of 62 cents YoY)
- Revenue Estimate: $3.16 billion (Up from $2.39 billion YoY)
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $14.64. Recent analyst moves include:
- UBS: Upgraded to Neutral (Raised Target to $17.00) (Jan. 9)
- Barclays: Upgraded to Equal-Weight (Raised Target to $18.00) (Jan. 5)
- Stephens & Co.: Initiated with Equal-Weight (Target $17.00) (Dec. 11, 2025)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Oscar Health, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 51.24/100) — Stock is outperforming the broader market.
The Verdict: Oscar Health’s Benzinga Edge signal reveals a mixed outlook. While the Momentum score indicates some positive trend, investors should remain cautious given the stock’s overall performance metrics.
Top ETF Exposure
- SPDR S&P Insurance ETF (NYSE:KIE): 2.19% Weight
- State Street SPDR S&P Insurance ETF (NYSE:KIE): 1.91% Weight
- Trenchless Fund ETF (NYSE:RVER): 8.56% Weight
Significance: Because OSCR carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
OSCR Shares Soar
OSCR Price Action: Oscar Health shares were up 7.43% at $17.93 at the time of publication on Thursday, according to Benzinga Pro data.
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