In This Article:
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 Yum China Holdings, Inc. (NYSE:YUMC) 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.
The iconic yellow and red roof of a franchise restaurant in the bustling streets of a city.
Yum China Holdings, Inc. (NYSE:YUMC)
Yum China Holdings, Inc. (NYSE:YUMC) operates, franchises, and owns restaurants in the People’s Republic of China. It operates in Pizza Hut, KFC, and All Other segments. The company operates restaurants under the Lavazza, KFC, Taco Bell, Little Sheep, Pizza Hut, and Huang Ji Huang concepts. The stock is down 7.70% in a week on a relative volume of 2.04.
The company’s 2025 plans are interesting. It plans to open 1,600 to 1,800 new stores, aiming for a total of 20,000 stores by the end of 2026. This expansion strategy will target smaller cities and strategic locations, utilizing the success of KFC’s small-town mini model and Pizza Hut’s WOW formats. Commodity prices are anticipated to remain reasonable. However, the company is expected to face headwinds from an increasing delivery mix, wage inflation, and tariffs.
The firm is expected to face challenges due to the potential trade war with the US. As China relies heavily on the US market, with over 13% of exports in 2024 to the US, the trade war could impact different industries, government revenues, and the government’s ability to maintain fiscal stimulus measures. Yum China Holdings, Inc. (NYSE:YUMC) is no different, so investors would need to track the progress on tariffs if they want to initiate a position in the stock.