Wall Street closed at a record-high level to finish a turbulent first half of 2025. June was highly successful for U.S. stock markets. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 4%, 5.7% and 5.7%, respectively. 

However, a microscopic analysis of U.S. stocks reveals that despite a solid finish, the indexes witnessed the weakest first half performance since 2022. The chances of a U.S.-China trade deal, the Fed’s indication of two 25 basis-points interest rate cuts and the evaporation of recession worries in the U.S. economy should act as catalysts during the second half.

An Imaginary Portfolio

At this stage, we offer an imaginary diversified portfolio comprising just five stocks selected from different industries. Each of these stocks skyrocketed more than 50% in first-half 2025. Despite this, their current favorable Zacks Rank indicates more upside in the short term.

These stocks are: Jabil Inc. (JBL Quick QuoteJBL - Free Report) , Howmet Aerospace Inc. (HWM Quick QuoteHWM - Free Report) , CVS Health Corp. (CVS Quick QuoteCVS - Free Report) , Carvana Co. (CVNA Quick QuoteCVNA - Free Report) and NRG Energy Inc. (NRG Quick QuoteNRG - Free Report) . Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Jabil Inc. 

Zacks Rank #1 Jabil has been benefiting immensely from healthy momentum in capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. 

JBL’s high free cash flow indicates efficient financial management practices, optimum utilization of assets, and improved operational efficiency. Massive application of generative AI is set to drastically increase the efficiency of JBL’s automated optical inspection machines for the automation industry. A large-scale portfolio of business sectors offers JBL a high degree of resiliency during times of macroeconomic and geopolitical disruption.

Jabil has an expected revenue and earnings growth rate of 5.9% and 18.5%, respectively, for the next year (ending August 2026). The Zacks Consensus Estimate for next-year earnings has improved 9% over the last 30 days.

Howmet Aerospace Inc.

Zacks Rank #1 Howmet Aerospace is benefiting from solid momentum in the commercial aerospace market, driven by robust build rates and wide-body aircraft recovery. HWM is also witnessing strength in its defense aerospace business on the back of rising U.S. & international defense budgets. 

Robust orders for engine spares for the F-35 program and spares and new builds for legacy fighters augur well for HWM. Given the strength in most of its served markets, HWM has built a sound liquidity position that supports its shareholder-friendly policies.

Howmet Aerospace has an expected revenue and earnings growth rate of 8.5% and 29%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last seven days. 

CVS Health Corp.

Zacks Rank #2 CVS Health is investing in advanced technological capabilities to cut costs and improve customer experience. Improved Medicare Advantage star ratings for the 2025 payment year are helpful for CVS. 

To stay competitive, CVS regularly reviews its national footprint, planning to close 271 stores and save more than $500 million in 2025. Oak Street Health continues to demonstrate strong patient growth, boosting the Healthcare delivery business. In Pharmacy and Consumer Wellness, CVS maintains a strong retail pharmacy script share position despite the reduced store count.

CVS Health has an expected revenue and earnings growth rate of 3.5% and 12.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the last 60 days.

Carvana Co.

Zacks Rank #2 Carvana’s acquisition of ADESA’s U.S. operations has strengthened its logistics network, auction capabilities and reconditioning processes. By utilizing ADESA’s infrastructure, CVNA can scale refurbishment operations, improving both the quality and volume of vehicles prepared for resale. 

CVNA anticipates sequential year-over-year growth in retail unit sales for second-quarter 2025. Despite being the nation’s second-largest used car retailer, CVNA holds only a 1% share of the highly fragmented U.S. automotive retail market, signaling substantial expansion potential as online car buying gains traction. CVNA’s emphasis on driving significant adjusted EBITDA per unit is reinforced by the ongoing enhancements in technology, processes and operational efficiency.

Carvana has an expected revenue and earnings growth rate of 32.1% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.8% over the last 30 days.

NRG Energy Inc.

Zacks Rank #2 NRG Energy operates as an energy and home services company in the United States and Canada. NRG produces and sells electricity generated using coal, oil, solar, and battery storage, natural gas, and a cloud-based home platform.

NRG continues to expand its operations through organic and inorganic initiatives. Its diverse customer base and ability to retain customers enhance its financial performance. NRG aims to achieve net-zero emissions by 2050. 

NRG's capital allocation plan should strengthen the balance sheet and increase its shareholder value through share repurchases and dividend payments. NRG's LS Power deal expands its operation and doubles its electricity generation capacity.

NRG Energy has an expected revenue and earnings growth rate of 2.6% and 17%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.8% over the last 60 days.