Analyzing the Resilient Stocks Amidst Market Turmoil
This year has proven to be a challenging one for investors, particularly as we witness the stock market grappling with policy uncertainties and economic concerns. The recent decline in stock values has echoed throughout the S&P 500, yet some companies have positioned themselves distinctively to outperform despite the broader downtrend. One standout is CVS Health (CVS), which has rebounded dramatically after a rough year in 2024.
The Current State of the Market
As of mid-March 2025, a staggering 77% of stocks in the S&P 500 have exhibited declines, and the index itself has dropped by 4.9%. This slump can be attributed to rising trepidations surrounding tariffs and a potential slowdown in economic growth. The Federal Reserve Bank of Atlanta’s GDP Now model predicts a contraction of 2.4% in the first quarter, with two consecutive quarters of decline signaling a recession.
The Bureau of Economic Analysis reported a 2.3% growth in GDP during the fourth quarter of 2024, followed by an overall annual growth rate of 2.8%. While these indicators seem promising, the uncertainty caused by political dynamics and economic forecasts has birthed a climate of discomfort and skepticism among investors. That said, there are always glimmers of hope amidst adversity, with certain stock sectors and companies defying the odds.
Sector Performance Analysis
In examining the 11 sectors of the S&P 500, it becomes apparent that the Health Care sector is leading the charge with a 6.1% price change this year. In stark contrast, the Information Technology and Consumer Discretionary sectors, the two worst performers, reflect a surrender to the pressures of a high forward price-to-earnings (P/E) ratio. Below is a snapshot of the sector performance:
| Sector or index | 2025 Price Change | 2024 Price Change | Forward P/E | 5-Year Average P/E | 10-Year Average P/E |
|---|---|---|---|---|---|
| Health Care | 6.1% | 0.9% | 18.0 | 17.1 | 16.5 |
| Consumer Staples | 4.5% | 12.0% | 22.7 | 20.4 | 19.8 |
| Real Estate | 2.6% | 1.7% | 18.1 | 19.3 | 18.9 |
| Utilities | 2.3% | 19.6% | 17.6 | 17.8 | 17.5 |
| Energy | 1.6% | 2.3% | 14.0 | 12.2 | 13.9 |
| Materials | 1.3% | -1.8% | 20.0 | 18.0 | 17.0 |
| Industrials | -1.3% | 15.6% | 21.9 | 21.5 | 19.3 |
| Financials | -1.7% | 28.4% | 15.7 | 15.2 | 14.4 |
| Communication Services | -3.7% | 38.9% | 18.6 | 19.2 | 19.0 |
| Information Technology | -11.4% | 35.7% | 24.9 | 25.1 | 20.7 |
| Consumer Discretionary | -14.0% | 29.1% | 25.0 | 31.7 | 26.9 |
Top Performers Defy the Trend
While the majority succumb to market pressures, a handful of stocks are making headlines with impressive rebounds. The following companies represent the top ten performers among the S&P 500 for 2025:
| Company | Ticker | 2025 Price Change | 2024 Price Change | Forward P/E |
|---|---|---|---|---|
| CVS Health Corp. | CVS | 45% | -43% | 10.6 |
| Super Micro Computer Inc. | SMCI | 26% | 7% | 11.1 |
| Philip Morris International Inc. | PM | 26% | 28% | 20.9 |
| Gilead Sciences Inc. | GILD | 24% | 14% | 14.4 |
| Baxter International Inc. | BAX | 24% | -25% | 14.2 |
| Amgen Inc. | AMGN | 23% | -10% | 15.5 |
| Texas Pacific Land Corp. | TPL | 22% | 111% | 50.6 |
| Vertex Pharmaceuticals Inc. | VRTX | 20% | -1% | 26.2 |
| AbbVie Inc. | ABBV | 20% | 15% | 17.0 |
| Walgreens Boots Alliance Inc. | WBA | 20% | -64% | 7.2 |
Conclusion: Navigating the Storm
The current market landscape, marred by uncertainty and pessimism, can be alarming for investors. However, with due diligence and a focus on sound investment fundamentals, opportunities do exist—even in economic downturns. The performance of CVS Health serves as a prime example of how careful strategic moves can lead to substantial gains, even amidst a backdrop of broader declines.
Investors are encouraged to remain vigilant and to consider value investments in sectors like health care where strong rebounding candidates, like CVS, are making their mark. Clear heads and steady hands will lead the way through this turbulence.
