We came across a bullish thesis on Oscar Health, Inc. (OSCR) on Twitter by convexititties. In this article, we will summarize the bulls’ thesis on OSCR. Oscar Health, Inc. (OSCR)'s share was trading at $15.41 as of March 4^th. OSCR’s trailing and forward P/E were 150.90 and 21.23 respectively according to Yahoo Finance.

Oscar Health (OSCR) presents a compelling investment opportunity in the healthcare providers space for 2025, with shares trading at a deep discount due to market fears that Trump could dismantle the Affordable Care Act (ACA). However, ACA subsidies are likely to remain largely intact, especially given their growing popularity in Red states. Even in a worst-case scenario where subsidies are rolled back, Oscar's management has guided to 2027 EPS of $2.25+, while a more favorable outcome could see EPS exceed $3.00. Additionally, Jared Kushner, an insider, has purchased over $20M of stock since Trump’s re-election, signaling confidence in the company’s future. Oscar is led by CEO Mark Bertolini, who successfully ran Aetna for 15 years before its acquisition by CVS, further strengthening the investment case. Despite above-peer growth and profitability, Oscar trades at a below-peer multiple. With a proprietary AI-driven technology stack that lowers costs and enhances user experience, Oscar is gaining significant market share, a trend that is expected to accelerate. As the market fully appreciates Oscar’s AI-powered competitive advantage, a sharp re-rating is likely, mirroring the trajectory of Tempus AI (TEM). A 12x multiple on a 2027 base-case EPS of $2.50 yields a $30 price target, offering significant upside potential.

Oscar Health, Inc. (OSCR) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held OSCR at the end of the fourth quarter which was 45 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 timeframe. If you are looking for an AI stock that is more promising than OSCR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.