#7 - Oscar Health (NYSE:OSCR)
The last stock on this list is that of Oscar Health Inc. (NYSE: OSCR). The company is committed to making health insurance accessible and affordable for all Americans. Over one million members are covered by its health plans, such as +Oscar which uses AI to assist providers and payors in their shift to value-based care.
Oscar has been growing YOY revenue at an impressive pace, and the company just turned in its first profitable quarter. However, the stock is down approximately 12% after earnings on concerns that the company may lose the advanced premium tax credits (APTCs) that are subsidizing 85% of the its policy premiums. That won’t happen until 2026, if it happens at all.
On the bullish side, investors can look at the company’s rising membership base, controlled pricing strategies, and a Medical Loss Ratio (MLR) of 74.2%. This ratio is a measure of how well the company manages healthcare expenses in relation to premium income.
About Oscar Health
Oscar Health, Inc operates as a health insurance in the United States. The company offers health plans in individual and small group markets, as well as +Oscar, a technology driven platform that help providers and payors directly enable their shift to value-based care. It also provides reinsurance products.
Read More - Current Price
- $16.86
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 5 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $22.93 (36.0% Upside)
Should you invest in one or more of these Russell 2000 stocks right now? Of course your personal investment style and risk tolerance will have a lot to do with that, but you should also pay close attention to the upcoming inflation readings.
Federal Reserve Chair Jerome Powell has repeatedly said the central bank isn't going to wait until the inflation rate reaches its 2% target. That means the Fed could start cutting as soon as the readings come in with a number below 3%.
And when the Fed cuts, investors will be stepping on the gas. That's why now may be a time to consider getting into these stocks. If the argument for small-cap stocks makes sense to you, but you don't want to pick individual stocks, you can consider an exchange-traded fund (ETF) such as the iShares Russell 2000 ETF (NYSEARCA: IWM), which tracks the performance of the Russell 2000 index.
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