Top 10 Medical AI Stocks on Wall Street’s Radar

3. Oscar Health Inc. (NYSE:OSCR)

Number of Hedge Fund Holders: 45

Oscar Health Inc. (NYSE:OSCR) is a leading health tech firm striving to reinvent health insurance using AI to speed up and automate manual processes while lowering healthcare costs. It offers diverse plans for individuals, families, and employees, including virtual care and doctor support. The company partnered with OpenAI to trim clinical documentation and lab test review time. Furthermore, Oscar Health Inc. (NYSE:OSCR) also developed an AI-powered claims assistant to reduce the time required to resolve claims processing escalations by 50%.

On December 10th, 2024, Jefferies initiated coverage of Oscar Health Inc (NYSE:OSCR) with an “Underperform rating” and a $12 price target. Analyst David Windley said the company’s core business is “overstimulated” by enhanced subsidies. Given its overexposure to subsidy-sensitive states, buybacks may not fully mitigate headwinds. However, Oscar Health Inc. (NYSE:OSCR) targets a 20% revenue CAGR through 2027 and a 5% operating margin, implying an operating income close to $700 million in three years.