While shareholders of Oscar Health (NYSE:OSCR) are in the black over 1 year, those who bought a week ago aren't so fortunate
If you want to compound wealth in the stock market, you can do so by buying an index fund. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Oscar Health, Inc. (NYSE:OSCR) share price is up 89% in the last 1 year, clearly besting the market return of around 12% (not including dividends). That's a solid performance by our standards! We'll need to follow Oscar Health for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.
Check out our latest analysis for Oscar Health
Because Oscar Health made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Oscar Health grew its revenue by 80% last year. That's stonking growth even when compared to other loss-making stocks. While the share price gain of 89% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Oscar Health. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
This free interactive report on Oscar Health's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Oscar Health shareholders should be happy with the total gain of 89% over the last twelve months. And the share price momentum remains respectable, with a gain of 28% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Oscar Health better, we need to consider many other factors. For instance, we've identified 2 warning signs for Oscar Health that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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