Oscar Health Surges to 190th Most Traded Stock with 422.75% Volume Spike

On May 7, 2025, Oscar Health (OSCR) experienced a significant surge, with its trading volume reaching 4.74 billion, marking a 422.75% increase from the previous day. This surge positioned OSCR as the 190th most traded stock of the day. The company's stock price rose by 30.22%, marking its second consecutive day of gains, with a total increase of 30.92% over the past two days.

Oscar Health's impressive performance can be attributed to its stellar first-quarter earnings report, which exceeded market expectations. The healthcare insurer reported earnings of $0.92 per share, surpassing analysts' estimates of $0.83. This represents a 10.84% earnings surprise and a nearly 50% year-over-year improvement compared to the $0.62 per share reported in the same period last year.

The company's revenue has also shown consistent growth, with a 56.54% year-over-year increase in trailing twelve-month sales. Despite the recent surge, Oscar Health had been down about 2.8% year-to-date before this report, outperforming the broader S&P 500, which had fallen 4.7%.

Oscar Health's success can be attributed to several factors, including the stabilization of the Affordable Care Act marketplace, which provides a solid foundation for insurers focusing on individual plans. The company's technology-first approach allows for more efficient customer acquisition and service, potentially lowering costs compared to legacy insurers. Additionally, Oscar has been successfully expanding its membership base, although specific Q1 figures were not detailed in the earnings release.

Despite the recent rally, Oscar Health may still have room to run, trading at a forward P/E of 16.78, which is reasonably valued considering its growth rate and improving profitability. Analysts have a consensus price target of $19.56, suggesting potential upside from current levels around $16.70. However, investors should be aware of the risks associated with the stock, including regulatory concerns, competition from established players, and volatility.