Three stocks outperform S&P 500 despite market decline

The stock market began 2025 positively but has faced challenges recently. Trade wars and tariffs have led the S&P 500 to drop nearly 4.5% this year. Despite this trend, three stocks have significantly outperformed the index, rising more than 25%. CVS Health has been the star performer, with a remarkable increase of about 51% this year. The company surprised investors by beating earnings expectations and giving an optimistic outlook for the year. Last year was tough for CVS, which saw a 43% drop in its stock price. Investors are hopeful under new CEO David Joyner's leadership. However, CVS still faces high medical costs, and the stock's future could be uncertain. It's advised that investors remain cautious. Super Micro Computer has also made strong gains, climbing 26.5%. It faced uncertainty last year when its auditor resigned due to concerns about its internal controls. Fortunately, the company met its financial reporting deadlines with a new auditor. The demand for its IT solutions, especially in artificial intelligence, is high. Still, potential slowdowns in tech spending and effects from tariffs could impact its growth. Philip Morris International's stock is up 27.9% this year. The company reported better-than-expected earnings guidance, boosting investor interest. It also received regulatory approval for its nicotine pouch product, Zyn. However, concerns about the health implications of such products persist. Despite the positive start, the long-term outlook for tobacco companies is complicated, and the stock’s valuation may not be attractive to all investors. Overall, while these three stocks have seen gains, potential investors should think carefully about the risks involved.