3 Underdog Stocks Poised for Growth Amid Market Declines
In the first half of 2025, certain stocks saw a significant decrease of 30% or more, but some still hold potential for growth in the long term, offering compelling buying opportunities. Among these stocks are UnitedHealth, Marvell Technology, and Deckers Outdoor, which have all experienced substantial declines.
UnitedHealth Group’s stock plummeted by 38% by the end of June, an unusual drop for a company of its size, now valued at around $275 billion. Despite risks like healthcare reform and rising costs, the stock is trading at a low multiple of 13 times trailing earnings, making it potentially undervalued.
Marvell Technology, a custom chipmaker, faced a 30% decline in the first half of the year. With strong revenue growth and a forward P/E multiple of 27, the company remains attractive, especially as demand for its application-specific integrated circuits increases due to AI-related spending.
Deckers Outdoor saw a staggering 49% drop in its stock value, largely due to factors like exposure to China and economic challenges. However, the company’s strong financial performance and low valuation at 17 times trailing earnings suggest potential for outperformance in the second half and beyond.
For investors seeking underdog stocks with growth potential, considering options beyond UnitedHealth Group could lead to significant returns. The Motley Fool Stock Advisor team has identified 10 stocks with promising outlooks, offering opportunities for substantial growth and market outperformance.
Read more at Yahoo Finance: 3 Underdog Stocks That Could Outperform the Market in the Second Half