Key Points
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These stocks were down 30% or more during the first half of 2025.
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These businesses, however, still have attractive growth prospects over the long haul.
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At significantly reduced valuations, they could be compelling stocks to buy right now.
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10 stocks we like better than UnitedHealth Group ›
The stock market has been choppy in 2025, but overall by the midway point the S&P 500 index was up 5.5%. And it has recently hit a new all-time high, putting into question just how much higher it might go this year, especially with many uncertainties still circulating around tariffs and trade policies.
What you may want to do is take a closer look at some stocks that haven’t been doing nearly as well this year, and that perhaps have seen too much of a falloff. There are three stocks that have crashed through the first half of the year that I believe have the potential to outperform the S&P 500 in the latter half of the year, and which could make for good contrarian buys today: UnitedHealth (NYSE: UNH), Marvell Technology (NASDAQ: MRVL), and Deckers Outdoor (NYSE: DECK).
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UnitedHealth
As of the end of June, shares of UnitedHealth were down a mammoth 38%. That’s not typical for a business of its size. Large declines may be more common for smaller stocks, but for a business whose market cap was once well over $500 billion, it has been a steep drop in value for UnitedHealth — its valuation is now around $275 billion.
There are risks with UnitedHealth, namely to do with healthcare reform, cuts to spending, and rising medical costs, but I believe the sell-off in the stock’s value is a bit overdone. And now, with shares of UnitedHealth trading at just 13 times trailing earnings, the price may be too low to pass up; the average stock on the S&P 500 trades at a price-to-earnings (P/E) multiple of 24.
UnitedHealth is facing a tough year ahead but CEO Stephen Hemsley, who has taken over from Andrew Witty (who has recently stepped down for personal reasons), hopes to get back on track to achieving the company’s long-run target of between 13% to 16% growth. The company recently withdrew its guidance for the year due to rising costs.
Given the reduced expectations in the market, UnitedHealth could be in a good position to potentially deliver a positive earnings surprise in the latter half of the year. Any sign of progress could lift the healthcare stock higher, as investors and analysts are always looking for indications that the business is on the right track, even if there is still some risk ahead.
Marvell Technology
Custom chipmaker Marvell was down 30% at the half-year mark. Hyperscalers use its application-specific integrated circuits (ASICs) to meet the needs of their workloads, especially as they ramp up spending related to artificial intelligence (AI). But that also means growth expectations are high for the company.
Unfortunately, Marvell disappointed investors earlier this year when its guidance wasn’t as strong as what the market may have been expecting. But with Marvell reporting $1.9 billion in revenue in its most recent quarter (the quarter ended on May 3), which was an increase of 63% year over year, clearly this is still a business with a lot of growth potential both in the short term and over the long haul.
Its custom chips can help to efficiently meet the needs of tech giants. And with AI spending still not slowing down, I wouldn’t be surprised if Marvell posts some better-than-expected results in the second half. At a forward P/E multiple of 27, which is cheaper than what it has averaged in the past, Marvell could be one of the more attractively priced AI stocks in the market right now.
Deckers Outdoor
Shares of Deckers Outdoor were down a staggering 49% through the first six months of the year. Between heavy exposure to China and the related tariff risk, and the potential for more of a slowdown in discretionary spending amid economic challenges, it’s little wonder why Deckers stock has been doing so poorly of late.
But such a steep sell-off may be unwarranted for a footwear company that’s still performing fairly well. In its most recent results, which went until the end of March, the company’s quarterly sales totaled more than $1 billion and were up 6% year over year, while net income rose by 19% to $151 million.
Deckers is trading at just 17 times its trailing earnings, which is an attractive multiple for a business that’s still growing at a decent rate. With so much negativity and bearishness already priced in, I wouldn’t be surprised if the stock were to outperform the S&P 500 in the second half and over the long term, given its low valuation.
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David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Deckers Outdoor. The Motley Fool recommends Marvell Technology and UnitedHealth Group. The Motley Fool has a disclosure policy.
