Select technology and paper stocks could win big heading into the second half of the year. At least for now, it looks like the bull case for stocks will remain intact over the next few months. Stocks rose on Monday, with Wall Street shaking off any fears associated with the U.S.’ bombing of Iran over the weekend and a subsequent retaliation from Iran . That same day, Fundstrat co-founder and head of research Tom Lee said Monday’s rally should actually strengthen the case for stocks to perform better in the latter half of 2025. “At the start of this year, we would have said the U.S. bombing a nuclear facility is a ‘Black Swan.’ Oil would be $120, stocks should be down 10%,” he said on CNBC’s ” Squawk on the Street ” on Monday morning. “And then we have the event, and oil is not really surging. … So I’d almost say that you put another stress test into the market, we’ve seen it pass it, and I think it means stocks should do pretty well into year’s end.” In particular, analysts believe some of this year’s beaten-down stocks would win big in the second half. CNBC Pro used FactSet data to screen the S & P 500 for stocks that could climb as the third quarter begins. To be included in the following table, stocks had to meet the below criteria: Be down at least 5% for the year Have buy ratings from at least 60% of analysts covering the name Have an upside to average price target of at least 25% Have an expected earnings per share growth rate of at least 10% One name on the list was cloud stock Arista Networks , which has stumbled 17% this year, as of Monday’s close. But 79% of analysts covering the name have assigned it a buy rating, and the average price target suggests 19% upside, according to FactSet. Views of the stock could be taking a turn. Shares jumped 6.6% on Monday. Earlier this month, Morgan Stanley reiterated its overweight rating on the stock. “There has been significant debate on ANET in the 1H of this year, with us tending to find bear case arguments overblown,” wrote analyst Meta Marshall. “Not expecting to get meaningful resolution to arguments on AI webcast later this week, but do see attractive setup to the 2H and remain OW.” Solar technology manufacturer First Solar has plunged 18% this year, but analysts believe it could rise 40% from here. Approximately 80% of Wall Street shops covering the name are bullish on its future prospects. Earlier in June, Jefferies upgraded the name to a buy rating from hold, calling it the “only game in town” after the Senate version of President Donald Trump’s tax bill cut out incentives for the renewable energy industry. “We believe IRA is going to shape-out net positive for FSLR … or at least better than contemplated,” analyst Julien Dumoulin-Smith wrote. Around 87% of analysts also see positive prospects for financial technology company Fiserv , which could rise 29% to its average price target, according to FactSet. The stock has tumbled 17% in 2025, as of Monday’s close. Shares of Fiserv gained 4.4% on Monday after the company announced plans to broaden its operations in the stablecoin industry through the launch of both a stablecoin and a digital-asset platform. To help meet these objectives, Fiserv said it would partner with Circle and PayPal .
