[US Stock Trends] Three Stocks Expected to Outperform the Market in the Second Half: UnitedHealth Group [UNH], Marvell Technology [MRVL], Deckers Outdoor [DECK] | Motley Fool US Stock Information | Moneyクリ MoneyX Securities Investment Information and Media Useful for Finance

Motley Fool U.S. Headquarters – July 8, 2025, from the posted article

The stock market in 2025 is showing unstable movements, but the S&P 500 index has risen by 5.5% at the mid-year point. On July 3, 2025, it updated its all-time high. However, with many uncertainties remaining regarding tariffs and trade policies, there are also questions about how much further it can rise in 2025.

Therefore, it might be a good idea to pay attention to stocks that are not performing well in 2025 or those that may have been excessively sold off. Among the stocks that plunged in the first half of 2025, there are three that are believed to have the potential to outperform the S&P 500 index in the second half of 2025 and are currently suitable for contrarian buying. They are UnitedHealth Group [UNH], Marvell Technology [MRVL], and Deckers Outdoor [DECK].

UnitedHealth Group [UNH]

As of the end of June, the stock price of UnitedHealth Group (hereinafter referred to as UnitedHealth) has significantly decreased by 38% year-to-date. This is unusual for a company of this size. While significant declines may be common for small-cap stocks, for UnitedHealth, which once had a market capitalization exceeding $500 billion, its value has literally plummeted. The company's valuation is currently about $275 billion.

UnitedHealth faces risks such as healthcare reform, spending cuts, and rising medical costs, but the decline in stock prices since entering 2025 seems a bit excessive. Currently, UnitedHealth's stock price is trading at just 13 times its earnings over the past year, which may be too low to overlook. The average stock price of the S&P 500 constituents is trading at a price-to-earnings ratio (P/E) of 24 times.

UnitedHealth is expected to face a challenging situation over the next year, but CEO Stephen Hemsley, who succeeded Andrew Witty (who recently stepped down for personal reasons), aims to get the company back on track towards achieving its long-term growth target of 13% to 16%. UnitedHealth recently withdrew its full-year guidance due to rising costs.

Considering that market expectations are declining, it is likely that UnitedHealth could deliver a positive earnings surprise in late 2025. Investors and analysts are always on the lookout for signs that the business is heading in the right direction, even if there are still risks ahead, so any indication of progress could lead to a rise in this healthcare stock.

Marvel Technology [MRVL]

Custom chip maker Marvell saw a 30% decline in the first half of 2025. Hyperscalers are using the company's application-specific integrated circuits (ASICs) to meet workload demands, particularly increasing spending related to artificial intelligence (AI). This indicates a high growth expectation for Marvell.

Unfortunately, Marvel disappointed investors by not announcing as strong a guidance as the market had expected at the beginning of 2025. However, the company's most recent quarterly revenue (for the quarter ending May 3) was $1.9 billion, marking a 63% increase compared to the same period last year, clearly indicating that it still holds significant growth potential both in the short term and long term.

Marvel's custom chips can efficiently meet the needs of high-tech giants. Additionally, since AI investments have not yet slowed down, it would not be surprising if the company exceeds expectations in the second half of the year. The expected PER is 27 times, which is cheaper than the historical average, and Marvel may be one of the most attractive AI stocks in the market at the moment.

Deckers Outdoor [DECK]

Deckers Outdoor's stock price recorded an astonishing decline of 49% in the first half of 2025. With significant exposure to China and associated tariff risks, along with the potential for discretionary personal consumption to further slow amid economic challenges, it is not surprising that Deckers' stock price has been languishing recently.

However, for a footwear company that is still achieving quite strong performance, such a sharp decline in stock prices may be unjust. In the most recent financial results up to the end of March, quarterly sales exceeded $1 billion, a 6% increase compared to the same period last year, and net profit rose by 19% to $151 million.

Deckers is trading at a price-to-earnings ratio of just 17 times its earnings over the past 12 months, which is an attractive multiple for a company that is still maintaining a solid growth rate. While there are many negative and bearish views on Deckers stock, given the low valuation, it would not be surprising if it outperformed the S&P 500 in the second half of the year and in the long term.

Disclaimer and Disclosure The article is intended solely for general informational purposes and does not constitute investment advice to investors. The author of the original article, David Jagielski, does not own shares in any of the companies mentioned. The Motley Fool U.S. headquarters owns and recommends shares of Deckers Outdoor. The Motley Fool U.S. headquarters recommends Marvel Technology and UnitedHealth Group. The Motley Fool has established a disclosure policy.