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 Covenant Logistics Group, Inc. (NYSE:CVLG) 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.Is Covenant Logistics Group, Inc. (CVLG) The Top Falling Stock with Unusual Volume?

A busy truckload depot, with trucks and goods packed up for their journeys.

Covenant Logistics Group, Inc. (NYSE:CVLG)

Covenant Logistics Group, Inc. (NYSE:CVLG) operates as a logistics and transportation services provider. The firm operates in Managed Freight, Expedited, Warehousing, and Dedicated segments. It serves traditional truckload customers and transportation companies. The stock is down 5.97% in a week on a relative volume of 2.03.

The company’s stock has had a disappointing 6 months after registering 5 years of healthy but volatile stock performance. Now the management needs to prove itself again, something investors aren’t willing to bet on, hence the stock falling on healthy volumes.

Covenant Logistics Group, Inc. (NYSE:CVLG) has been unable to significantly improve its EPS over the last 4 quarters. The YoY growth has been negative during this time, hence the pessimism.  While the share price chart over the past 5 years looks fine, the free cash flow margins paint an opposite picture, and that is what investors want to see changing.

From a peak of nearly 30% in 2021 to negative FCF margins late last year, the management has failed to deliver the cash flow investors expect. The last two quarters have shown an uptick, and the margins are back into positive territory again. However, it is quite likely investors want to see these margins reach historic levels again before they consider buying the stock.

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Overall, CVLG ranks 16th on our list of top falling stocks with unusual volume. While we acknowledge the potential of CVLG 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 CVLG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.

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