Oscar Health, Inc. (OSCR) shares ended the last trading session 56.3% higher at $5.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 33% loss over the past four weeks.
Oscar Health has named Mark Bertolini, the former chief executive officer and chairman of Aetna Inc., as its new chief executive officer. This move is expected to aid the health insurer to become a profitable insurance business.
The health insurer is likely to gain from higher membership driven by growth in the Individual line of business. Oscar Health’s growth reflects strong retention and growth in core markets during open enrollment, despite having the lowest cost plan in only 8% of its markets.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +105.6%. Revenues are expected to be $1.06 billion, up 8.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Oscar Health, Inc., the consensus EPS estimate for the quarter has been revised 42.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on OSCR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Oscar Health, Inc. is part of the Zacks Insurance - Multi line industry. Goosehead Insurance (GSHD), another stock in the same industry, closed the last trading session 2.4% lower at $49.30. GSHD has returned 14.5% in the past month.
For Goosehead , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.06. This represents a change of +50% from what the company reported a year ago. Goosehead currently has a Zacks Rank of #1 (Strong Buy).
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