Why Wall Street Is Betting on These 3 Comeback Stocks

Key Points

• After a rocky April, the S&P 500 has recovered strongly and entered the second half up about 6% year-to-date.
• Some companies still underperformed by a large margin, including UnitedHealth, Edison International, and Salesforce.
• Of these, UnitedHealth and Salesforce may have the strongest prospects in the near term.

The first half of 2025 was a tumultuous time for U.S. securities, to put it mildly. The transition to the second Trump administration brought rapidly shifting domestic and international policies and ever-changing tariffs to an economy that some analysts feel is on the brink of recession.

Still, after a precipitous drop in early April, the S&P 500 recovered nicely in the second quarter. With gains of more than 6% for the first half of the year, the benchmark index is starting the third quarter at fresh record highs.

That's not to say, however, that every security in the U.S. market has been successful at staging a recovery. Some prominent firms have significantly underperformed the broader market in the first half of 2025. Despite their recent troubles, however, three of these companies may present investors an opportunity to buy before share prices recover, capturing attractive returns in the process.

Many Factors Have Rocked UnitedHealth, But a Turnaround Seems Possible

Health insurance and services giant UnitedHealth Group Inc. NYSE: UNH had a dismal start to the year, with shares plummeting after top- and bottom-line misses on its first earnings report of 2025 and then falling further through May. Though still the top U.S. insurer by market value, UnitedHealth has shed more than 40% of its share price this year.

The company's issues are many and varied: surging medical costs threaten its earnings performance, the departure of its CEO has disrupted stability, and an ongoing fraud investigation has done sizable reputational damage. Analysts forecast a year-over-year (YOY) dip of more than 20% for EPS in the company's second-quarter earnings report, although revenue may increase over the same period.

All that being said, investors may also have reasons to expect a turnaround from one of Congress' favorite stocks to buy in recent weeks. UNH did recently boost its dividend and sell off a portion of its Latin American unit, Banmedica, both of which should appeal to shareholders hoping the company will provide a stronger value proposition.

Further, the company's fundamental business model—diversified between healthcare services and insurance—has long been a winner. If UNH can find a catalyst to reintegrate stability, it could stage a turnaround and see 38% upside potential. Meanwhile, with a P/S ratio of just 0.7 and a trailing P/E ratio of 12.9, shares are valued as competitively as they've been in a long time.

Wildfires and Regulation Threaten Edison International

Southern California utility firm Edison International NYSE: EIX experienced notable volatility in the first half of the year, with a number of rises and falls in the first six months amid wildfires across the region. Entering the third quarter, though, shares are down more than 22%.

Like other California utilities, Edison is facing the possibility of massive regulatory overhaul statewide thanks to SB 254. The bill would limit Edison's ability to raise prices and also stipulate that it, alongside other utility firms, would pay for fire mitigation and other additional costs.

The risk of regulatory uncertainty is significant, particularly for Edison's short-term performance. Still, nine out of 15 analysts believe EIX shares are a Buy, and analysts are widely optimistic about the company's ability to boost its earnings by nearly 17% in the next year. The firm also has a strong dividend yield of 6.60%. Investors willing to wait out shifting regulations—or who suspect SB 254 may not be passed in its current form—might consider taking a chance on EIX while the P/S ratio is just 1.1.

Salesforce Had a Lackluster First Half, But Momentum is Building

Customer relationship management (CRM) software leader Salesforce Inc. NYSE: CRM saw shares dwindle in price in the first months of the year, and they have so far not made a recovery. The share price has declined by 14% in the first half.

Salesforce has successfully transitioned toward a model that prioritizes profitability, and its margins are improving. The company is drawing new business with its agentic AI offerings like Agentforce, even as its core products continue to sustain users from year to year. Quarterly data cloud and AI revenue recently more than doubled YOY.

The company's first-quarter earnings report called for improved guidance, and this growth could accelerate through the end of the year. Add to that a modest dividend and aggressive share repurchases, and Salesforce appears to have found a recipe for building value.