Oscar Health, Inc. (OSCR) shares surged 5.98% in pre-market trading on Thursday, as investors turned their attention to the long-neglected healthcare sector.

The rally followed a report noting that healthcare stocks have been largely forgotten this year, with the sector significantly underperforming the broader market. The State Street Health Care Select Sector SPDR ETF has gained only about 6% year-to-date, compared to the S&P 500's 13% advance. Analysts pointed out that the sector is "oversold" and "under-owned," leaving room for portfolio managers to increase their exposure. With an aging population and steady demand for medical services, the sector is seen as both defensive and poised for growth, making it an attractive target for bargain hunters.

Oscar Health, a health insurance provider, likely benefited from the broad-based buying interest in healthcare names as investors rotated out of overheated sectors.