Is UnitedHealth Group Incorporated (UNH) The Top Falling Stock 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 senior healthcare professional giving advice to a patient in a clinic.
UnitedHealth Group Incorporated is a health care company. The firm operates in the Optum Health, Optum Rx, UnitedHealthcare, and Optum Insight segments. It offers care management, consumer-oriented health benefit plans and services, advisory consulting arrangements, pharmacy care services and programs, and others. The stock is down 23.60% in a week on a relative volume of 5.62.
Baird's analyst, Michael Ha, recently recommended the healthcare provider as its top pick, citing its ability to withstand potential tariffs effectively. The analyst assigned an Outperform rating on the stock with a price target of $640. Analyst Michael Ha believes that due to its domestic focus on Medicare plans, the managed care firm is protected from tariff impacts.
The company also recently updated its FY2025 outlook after an earnings debacle that saw its price crash about 20%. Based on the updated guidance, UnitedHealthcare's operating earnings are anticipated to be in the range of $16 billion to $16.5 billion. Driven by higher care activity and patient mix changes. The medical care ratio is projected to be 87.5% for the full year. The firm aims to adapt its Medicare Advantage pricing and plan designs for 2026 based on the 2025 trends.
The post-earnings period is turning out to be the worst in the company's history, but the firm continues to generate healthy numbers. With revenue up 60% over the last 5 years, and free cash flow up by a similar number, the juggernaut is moving strong. It is also well-supported by a strong dividend and a buyback program. A poor earnings caught everyone by surprise, but once the high volume selling subsides, the stock will be even attractive than it was just a week ago.
Overall, UNH ranks 2nd on our list of top falling stocks with unusual volume. While we acknowledge the potential of UNH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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