Oscar Health Faces Analyst Downgrades Amid Enrollment Concerns

NEW YORK, NY — Oscar Health Inc. stocks have fallen sharply following a series of analyst downgrades, raising concerns among investors. The stock price dropped 3.1% in the morning session on July 17, 2025, continuing a downward trend influenced by cautious remarks from Wells Fargo and UBS.

Wells Fargo downgraded Oscar Health’s stock to underweight, slashing its price target due to worries about rising costs and inadequate pricing for its plans in 2025. Similarly, UBS anticipates a significant decline in enrollment numbers as subsidies under the Affordable Care Act (ACA) expire in 2026.

Oscar’s stock has plummeted over 39% from its peak in July 2025, nearing the lowest levels since May 2025. Analysts project that a 30% drop in ACA enrollment will further strain Oscar’s revenue, compounded by inflationary pressures and regulatory uncertainties.

Despite these short-term challenges, some analysts argue that Oscar’s strong cash flow and disciplined cost structure could position it for long-term resilience. In the second quarter of 2025, the company reported operating cash flow of $497 million, on top of $878.5 million from the first quarter, driven by robust membership growth.

“Oscar’s revenue growth outpaces many competitors, with a year-over-year growth of 42%,” an analyst noted, highlighting that the company’s price-to-sales ratio is significantly lower than peers’. Despite the downtrend, Oscar Health maintains a solid cash reserve of $3 billion, which provides a buffer against market volatility.

Oscar’s efforts in improving customer retention and leveraging technology also showcase its potential. With an 8-10% market share in the ACA, the company boasts a 66 Net Promoter Score, indicating high customer satisfaction.

Although investor sentiment remains cautious due to the downgrades, some view the current price as an opportunity to acquire a rapidly growing, technology-driven insurer at a discount. “The market’s focus on Oscar’s near-term risks has created a buying opportunity for those willing to invest for the long term,” said a market analyst.

In summary, Oscar Health faces immediate challenges that have led to a steep decline in stock price, but its robust operational framework and growth potential may offer opportunities for investors looking beyond current volatility.