Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Oscar Health (NYSE:OSCR) and the best and worst performers in the health insurance providers industry.
Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.
The 12 health insurance providers stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 3.5% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9.8% on average since the latest earnings results.
Founded in 2012 to simplify the notoriously complex American healthcare system, Oscar Health (NYSE:OSCR) is a technology-focused health insurance company that offers individual and small group health plans through its cloud-native platform.
Oscar Health reported revenues of $2.86 billion, up 29% year on year. This print fell short of analysts’ expectations by 3.5%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EPS estimates.
“We believe the individual market has long-term upside and is the future of healthcare,” said Mark Bertolini, CEO of Oscar Health.
Oscar Health Total Revenue
Oscar Health delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 45.3% since reporting and currently trades at $20.08.
Is now the time to buy Oscar Health? Access our full analysis of the earnings results here, it’s free.
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
CVS Health reported revenues of $98.92 billion, up 8.4% year on year, outperforming analysts’ expectations by 5.1%. The business had a stunning quarter with a solid beat of analysts’ same-store sales and EPS estimates.
CVS Health Total Revenue
The market seems happy with the results as the stock is up 13% since reporting. It currently trades at $70.43.
Is now the time to buy CVS Health? Access our full analysis of the earnings results here, it’s free.
With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group (NYSE:UNH) operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.
UnitedHealth reported revenues of $111.6 billion, up 12.9% year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a miss of analysts’ EPS estimates.
Interestingly, the stock is up 13.6% since the results and currently trades at $320.57.
Read our full analysis of UnitedHealth’s results here.
Founded in 2014 to improve healthcare for America’s seniors through technology, Clover Health (NASDAQ:CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Clover Health reported revenues of $477.6 million, up 34.1% year on year. This print surpassed analysts’ expectations by 1.7%. Aside from that, it was a satisfactory quarter as it also logged full-year EBITDA guidance beating analysts’ expectations but a significant miss of analysts’ EPS estimates.
The company added 2,905 customers to reach a total of 106,323. The stock is down 2.6% since reporting and currently trades at $2.76.
Read our full, actionable report on Clover Health here, it’s free.
With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Humana reported revenues of $32.39 billion, up 9.6% year on year. This result topped analysts’ expectations by 1.7%. It was a strong quarter as it also logged an impressive beat of analysts’ full-year EPS guidance estimates and full-year revenue guidance slightly topping analysts’ expectations.
The company added 3,200 customers to reach a total of 14.84 million. The stock is up 32.9% since reporting and currently trades at $309.55.
Read our full, actionable report on Humana here, it’s free.
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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