Defying the Downturn: Why These Stocks Soared 25% in 2025’s Bear Market

The first half of 2025 was marked by unprecedented market turmoil. President Trump’s aggressive tariff policies, geopolitical tensions, and fears of a Federal Reserve policy misstep sent the S&P 500 plummeting 17% from its February peak. Yet amid the chaos, a handful of companies defied the gloom, surging over 25% year-to-date (YTD) even as major indices collapsed. How did they achieve this? Let’s dissect the strategies and trends that turned these stocks into 2025’s standout performers.

The Market Backdrop: Bearish Conditions and Safe-Haven Demand

The year began with a historic sell-off triggered by Trump’s “Liberation Day” tariffs—54% on Chinese imports and 20% on the EU—sparking a 90-day market rout. The Nasdaq 100 entered a bear market, while the S&P 500 hovered near that threshold. Investors fled to perceived safe havens, prioritizing stability over growth. This environment favored three key categories:
1. Defensive sectors (utilities, consumer staples)
2. Commodities (gold, silver)
3. Companies with fortress balance sheets

1. Consolidated Edison (ED): Utilities as the New Treasury Bonds

YTD Gain (2025): +25.01%
Market Cap: $40.2B

Con Ed, a New York-based utility, exemplifies the flight-to-quality trade. Utilities are recession-resistant, with regulated monopolies and steady cash flows. Investors flocked to these “bond proxies” as interest rates remained elevated. Con Ed’s dividend yield of 3.8%—far above 10-year Treasuries at 4.4%—made it a compelling alternative to bonds in a low-yield world.

2. Philip Morris International (PM): The Tobacco Titan’s Resilience

YTD Gain (2025): +34.56%
Market Cap: $252.1B

Philip Morris, the global cigarette giant, thrived as a consumer staples stalwart. Its products have inelastic demand, and its high-profit margins (42% operating margin in Q1 2025) insulated it from macroeconomic shocks. The stock’s 3.4% dividend yield further attracted income-seeking investors.

PM’s success also reflects its strategic pivot to vaping and nicotine alternatives, which are gaining regulatory acceptance. This diversification into less controversial markets has reduced its reliance on traditional tobacco sales.

3. CVS Health (CVS): Healthcare’s Unshakable Foundation

YTD Gain (2025): +44.41%
Market Cap: $81.8B

CVS’s surge highlights the defensive appeal of healthcare. As the largest U.S. pharmacy benefits manager, it benefits from rising drug prices and an aging population. Its acquisition of Aetna in 2018 created a vertically integrated healthcare powerhouse, reducing reliance on volatile sectors like tech or industrials.

CVS’s 1.9% dividend yield and 15% YTD revenue growth (driven by prescription volume) underscore its stability. The stock also benefited from bipartisan support for healthcare infrastructure spending.

4. Newmont (NEM): Gold’s Record Surge Fuels Miner Profits

YTD Gain (2025): +47.76%
Market Cap: $62.0B

Newmont, the world’s largest gold miner, capitalized on gold’s historic rally to $3,510/ounce—the highest since the 2008 crisis. Investors flocked to gold as a hedge against tariff-driven inflation, geopolitical risk, and the Fed’s uncertain policy path.

The stock’s outperformance reflects not just gold prices but also Newmont’s cost discipline: its all-in sustaining cost per ounce dropped to $1,050 in 2024, below the $1,400 spot price.

Common Themes Among the Winners

1. Defensive Sectors Dominate: Utilities, consumer staples, and healthcare accounted for four of the five top performers.
2. Cash Generation is King: All companies had strong free cash flow (FCF) margins—Newmont (50%), PM (35%), and Con Ed (45%).
3. Dividends Matter: The average dividend yield of the top five stocks was 3.1%, well above the S&P 500’s 1.3%.
4. Macro Hedge Benefits: Gold miners and utilities offered direct exposure to inflation and geopolitical risks.

What This Means for Investors

The 2025 market taught a clear lesson: uncertainty breeds opportunity for those who prepare. Investors should:
- Prioritize stability: Look for companies with recession-resistant revenues, low debt, and reliable dividends.
- Hedge with commodities: Gold, silver, and agricultural stocks can offset equity losses during trade wars.
- Avoid overvalued growth stocks: Tech giants like Apple and Tesla fell over 14% and 40%, respectively, as investors rotated into safer assets.

The data is unequivocal: in volatile markets, defensive strategies outperform. As the S&P 500’s 17% decline shows, growth alone isn’t enough when macro risks loom. The winners of 2025 remind us that resilience—not just ambition—defines long-term success.

Conclusion: The Bear Market’s Hidden Winners

In 2025’s turbulent markets, the top performers—Consolidated Edison, Philip Morris, CVS Health, and Newmont—demonstrated that stability and defensive positioning are critical during economic uncertainty. Their gains of 25%+ versus the S&P 500’s 17% decline underscore a timeless truth: investors who focus on cash flow, dividends, and macro hedges can thrive even when the broader market crumbles. As we look ahead, the lessons of these stocks will guide prudent investors through the next storm.