Investment Thesis:
We all know markets are cyclical, and not all sectors move in sync. Right now, while the broader market feels stretched, the Healthcare sector looks significantly undervalued. This makes it a potential safe harbor in case of an S&P 500 downturn.
Within this context, Oscar Health stands out as an extremely compelling tech-driven turnaround story.
My Thesis in 30 Seconds:
- Profitability is Here: The cash-burn story is over. Oscar has hit positive Adjusted EBITDA, proving its tech-driven insurance model is financially sustainable.
- The "+Oscar" Tech Asset: Their real secret weapon is the "+Oscar" software platform, which they are now licensing to others. This is a high-margin, SaaS-like business hidden inside an insurer that the market is still underappreciating.
- Disrupting a Trillion-Dollar Market: They are stealing market share from traditional, inefficient insurers thanks to a superior digital user experience.
Conclusion: I see $OSCR at a key inflection point. The business is turning profitable, and its tech platform offers huge upside potential. While competition and regulatory risks are always a factor in the healthcare sector, the potential reward looks very compelling at current valuations.