Oscar Health, Inc. (OSCR) stock is showing signs of recovery in pre-market trading, soaring 5.11% following a steep 19% drop in the previous session. This volatile movement comes as investors reassess the stock's value in light of recent analyst actions and sector-wide concerns.

The dramatic sell-off on Wednesday was triggered by Barclays initiating coverage of Oscar Health with an underweight rating and a price target of $17. This bearish outlook contributed to a broader decline in health insurance stocks, with Oscar Health being particularly hard hit. However, the current pre-market surge suggests that some investors may view the stock as oversold following the sharp decline.

Market participants appear to be reevaluating Oscar Health's prospects, potentially seeing value at the lower price point. The quick rebound could indicate that traders believe the previous day's sell-off was overdone. Nevertheless, it's important to note that Oscar Health still faces challenges, including the negative sentiment from Barclays and broader headwinds in the health insurance sector. As the market opens, investors will be watching closely to see if this pre-market momentum can be sustained throughout the trading session.