CVS Health: A Beacon of Growth Amid Market Turbulence – Two Stocks to Avoid in 2025

The early months of 2025 have been a rollercoaster for investors, with some sectors thriving while others falter. Amid this volatility, CVS Health (CVS) has emerged as a standout performer, while Deckers Outdoor (DECK) and Tesla (TSLA) have lagged significantly. Here’s why one stock is worth watching—and two to steer clear of.

CVS Health (CVS): A Growth Story Rooted in Stability

CVS Health has surged 50.9% year-to-date (YTD) as of April 2025, outpacing even the strongest sectors. The healthcare giant’s performance reflects a combination of strategic moves, sector resilience, and broader economic trends.

The company’s acquisition of Aetna in 2018 continues to pay dividends, creating synergies between pharmacy benefits management and health insurance. Additionally, its expansion into primary care through MinuteClinics and its leadership in telehealth have positioned it well for a post-pandemic world.

The stock’s rise is also fueled by its strong balance sheet and cash flow. With a dividend yield of 1.2% and consistent earnings growth, CVS is a rare blend of stability and innovation in an otherwise uncertain market. Investors看好 its potential to capitalize on aging demographics and the growing demand for integrated healthcare services.

Stock to Avoid #1: Deckers Outdoor (DECK)

Deckers Outdoor, the parent company of brands like UGG and HOKA, has plummeted -44.9% YTD, making it the worst performer in the S&P 500. The decline underscores risks tied to overreliance on seasonal demand and shifting consumer preferences.

The company’s heavy concentration in winter footwear and lifestyle apparel left it vulnerable to a weak holiday season and a broader shift toward sustainable, affordable fashion. Additionally, supply chain disruptions and inventory mismanagement have exacerbated losses.

Analysts warn that DECK’s recovery hinges on diversifying its product lines and reducing dependency on seasonal sales. Until then, the stock remains a cautionary tale of overexposure to niche markets.

Stock to Avoid #2: Tesla (TSLA)

Tesla’s -35.8% YTD decline places it among the S&P 500’s worst performers, reflecting broader challenges in the tech and electric vehicle (EV) sectors. The once-heralded disruptor now faces intense competition from traditional automakers like GM and Ford, as well as upstarts like Lucid and Rivian.

Regulatory headwinds, including scrutiny over Tesla’s Autopilot system and its handling of workplace safety, have also dented investor confidence. Meanwhile, rising interest rates and supply chain bottlenecks have slowed EV adoption in key markets.

The decline is further amplified by broader tech sector struggles. The “Magnificent 7” tech giants—including Alphabet, Meta, and Amazon—have all underperformed in 2025, with Tesla’s drop the steepest. For now, Tesla’s valuation and growth narrative face steep hurdles.

Conclusion: Prioritize Research, Diversify, and Look Beyond Momentum

CVS Health’s rise highlights the enduring value of stable, cash-generative businesses in uncertain times. Its combination of healthcare innovation and defensive characteristics makes it a compelling long-term play.

Meanwhile, Deckers and Tesla serve as reminders of the risks of chasing fads or overvalued sectors. Investors must ask tough questions: Does DECK have a plan to innovate beyond UGG boots? Can Tesla maintain leadership in an increasingly crowded EV market?

The broader market’s 8% decline early in 2025 underscores the importance of diversification. For passive investors, the S&P 500 index fund—returning ~10% annually over decades—remains a prudent choice. Active investors, however, should focus on companies with sustainable competitive advantages, like CVS, while avoiding those clinging to fading trends.

As always, past performance is no guarantee of future results. But in 2025, the data points clearly: stability and innovation win—everything else is a gamble.