Buying a stock that's struggling and down big can involve risk, but the upside could also be substantial if things go well for a company and it's able to turn things around. It's a great reminder of why it may be worth holding a small position in these types of stocks, as the payoff can be significant.
Three stocks that have been impressive turnaround stories this year are Intel (INTC +0.29%), CVS Health (CVS +1.89%), and Super Micro Computer (SMCI 0.98%), which normally goes by just Supermicro. While they were crashing last year, they have been much better buys in 2025.
Here's a look at why they've rebounded and whether they can still be good buys today.
Image source: Getty Images.
Intel
Last year, shares of the struggling semiconductor company Intel fell a mammoth 60%. Rising losses and concerns about its fabrication business weighed on the stock, with investors worried about its future growth. In 2024, Intel incurred a whopping $18.8 billion in net loss, while its revenue also declined by 2%, to $53.1 billion.
This year, however, shares of Intel are up around 85%, dwarfing the S&P 500's gains of 14%. In August, the company announced that it and the Trump administration had reached a deal in which the U.S. government would take a 10% stake in the business. The biggest catalyst, however, took place in September when chipmaker Nvidia announced it would invest $5 billion into Intel, which resulted in Intel's stock soaring more than 20% in a single day.
Intel has been showing signs of progress as it posted a modest operating profit of $683 million for the period ended Sept. 27, and its revenue rose by 3% to $13.7 billion.
NASDAQ: INTC
Key Data Points
The company is still a risky one to invest in, but now Intel's stock is much more expensive, trading at a whopping forward price-to-earnings (P/E) multiple of 56, which is based on analyst expectations. It may be intriguing enough to follow and put on a watch list, but I wouldn't buy Intel at its current levels.
CVS Health
Another stock that did poorly in 2024 was CVS Health. It crashed 43% after the healthcare company routinely disappointed investors with poor quarterly results that fell short of expectations. Eventually, the company replaced its CEO at the time, Karen Lynch, with David Joyner.
Under Joyner, CVS has fared better, and through the first nine months of 2025 its revenue has risen by 8% to $296.4 billion. It has incurred a loss of $1.2 billion over that time frame, but that also includes $5.7 billion in goodwill impairment charges. If you take that out, then its bottom line would be stronger than the nearly $3 billion profit it posted over the first three quarters of last year.
NYSE: CVS
Key Data Points
Rising costs are still a problem for health insurers and pharmacies, but CVS has been showing signs of stability, which has won the support of investors. This year, it has surged 75%. But due to its big decline last year, it's trading at a forward P/E of just 11 and can still make for a good buy right now.
Supermicro
Tech company Supermicro ended up with a positive gain of 7% in 2024, but that was a far cry from the more than 300% gains it was sitting on early in the year. Its collapse as the year went on was significant, as a combination of poor margins and concerns about the sudden departure of its auditor led investors to worry about the reliability and strength of its impressive financials.
This year, Supermicro stock has done much better due to the growth in artificial intelligence spending. At one point it had doubled in value. It's up 28% year to date, but that would have been higher if not for a recent sell-off after it reported earnings on Nov. 4 (as of the end of October, it was up over 70%).
Although the company has a new auditor and those issues don't appear to be dragging it down these days, its margins still remain low at less than 10% of revenue. Meanwhile, its top line has been going in the wrong direction of late, falling to $5 billion for the period ended Sept. 30, versus $5.9 billion in sales in the prior-year period.
NASDAQ: SMCI
Key Data Points
Supermicro is involved in IT infrastructure and selling servers. If companies appear to be scaling back, it may be because they already have stockpiled enough, and that could be a red flag for growth investors. At a forward P/E of 20, Supermicro is not a safe buy given its margins and slowing revenue.
