Why Alignment Healthcare Inc. (ALHC) Surged On Tuesday?

We recently published a list of 10 Stocks Lead Rally Amid Market Bloodbath. In this article, we are going to take a look at where Alignment Healthcare Inc. (NASDAQ:ALHC) stands against other stocks that lead rally amid market bloodbath.

The stock market took a battering anew on Tuesday, with all major indices registering steep losses as investors continued to digest President Donald Trump’s next tariff deadline that would slap China with a cumulative 104-percent tariff.

The tech-heavy Nasdaq registered the heaviest fall, down by 2.15 percent, followed by the S&P 500’s 1.57 percent decline, and the Dow Jones’ 0.84-percent drop.

Meanwhile, 10 companies—four of which were in the medical sector—bucked an overall market decline, booking modest gains during the session.

In this article, we listed the 10 well-performing names of Tuesday and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.

Alignment Healthcare Inc. (NASDAQ:ALHC)

Alignment Healthcare grew its share prices by 6.34 percent on Tuesday to finish at $18.95 apiece as investors snapped up shares in the company on optimism that it would benefit from the US government’s plan to more than double Medicare payments next year. ALHC is a health insurance company that offers Medicare Advantage services.

Following the government’s announcement, analysts from Stifel raised their price target for ALHC to $23 from $18 previously while maintaining a Buy rating on the company’s stock. The new price target marked a 21.37-percent upside from ALHC’s closing price on Tuesday.

Based on its own analysis, Stifel said that ALHC gained a market share over the last two annual enrollment periods, benefitting from the decline in star ratings of its competitors as well as their shrinking margins which led to cutbacks in benefits and memberships.

Overall, ALHC ranks 4th on our list of stocks that lead rally amid market bloodbath. While we acknowledge the potential of ALHC as an investment, our conviction lies in the belief that 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 ALHC 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.