We recently published a list of Top 20 Falling Stocks with Unusual Volume. In this article, we are going to take a look at where Elevance Health, Inc. (NYSE:ELV) stands against other top falling stocks with unusual volume.
Uncertainty around tariffs and macroeconomic conditions has dented investor confidence, resulting in stock prices falling. While some stocks have come under pressure due to the above two reasons, others have simply followed the market direction or have dipped for company-specific reasons.
Regardless of the reasons for stocks going down, falling stocks provide an opportunity for fresh investors to get in at good prices. Once the risks subside, these stocks usually recover quickly as well. We decided to uncover these stocks and see if it makes sense to put money in them to take advantage of the ongoing market turmoil.
To come up with our list of top 20 stocks falling with unusual volume, we looked at stocks over $300 million in market cap, their one-week performance, and used relative volume to detect the unusual volume activity.
Relative volume compares the daily volume to the three-month average trading volume of the stock, making it easy to detect spikes in volume. These spikes usually signal something important is happening, which, when combined with falling prices, becomes a red flag that investors can’t ignore.
A medical professional working at a computer, utilizing the company’s digital solutions to improve care quality for consumers.
Elevance Health, Inc. is a health benefits company. The company operates through Health Benefits, Carelon Services, CarelonRx, and Corporate & Other segments. It provides a variety of health services and plans to Medicare, individual, FEP, Medicaid, employer group risk-based and fee-based, and BlueCard members. The company’s stock is down 2.71% on a relative volume of 2.09.
The reason for this lackluster performance is a policy risk related to Medicaid. Recently, Baird’s analyst Michael Ha downgraded the stock from Outperform to Neutral. The firm also adjusted its price target downward from $625 to $529.
Following the state Gov. Sarah Huckabee Sanders’ signing a law banning pharmacy benefit managers (PBMs) from operating or owning pharmacies, ELV announced plans to close over 20 pharmacies in Arkansas. This has spooked some investors, but things aren’t as bad as they look for the company.
Elevance provided a stable full-year outlook at its recent earnings. As per the guidance, it expects its Medicare Advantage membership to hit somewhere between 2.2 million and 2.25 million members in 2025. Its projected full-year non-GAAP EPS is $34.5 at the midpoint with a non-GAAP net income of $11.97/share for Q1 2025. The stock continues to face pressure regardless of the positive outlook, but that’s precisely what makes it a good buying opportunity.
