End the Year Strong With These 3 Comeback Champions

As cracks have started to show in the S&P 500 in the past several weeks—following an impressive rally since the tariff-linked plunge in early April—investors might turn to companies bucking the trend. A handful of firms have seen volatility throughout the year but are poised to end 2025 on a high note. 

Companies like Delta Air Lines Inc. (NYSE: DAL), Diamondback Energy Inc. (NASDAQ: FANG), and HEICO Corp. (NYSE: HEI) represent three different share price trajectories throughout the year, but each has a disciplined strategy and the potential for renewed momentum as 2025 comes to a close.

Delta's Margins, Strong Loyalty Program, and Business Travel Demand Could Fuel Resurgence

Like the broader airline industry, Delta has been in a holding pattern for much of the fall amid an extended government shutdown that hampered travel across the United States. This external factor may have impacted the company's share price, interrupting a broader recovery that has been ongoing since the stock dipped below $36 in April of this year. Delta's stalled recovery extends back even farther than the shutdown, though, as shares have hovered more or less in place since August.

While Delta beat on EPS in its third-quarter earnings report, it did fall short of analyst expectations on revenue—sales climbed by just 4% year-over-year (YOY). Still, Delta's operating margins remain strong at 11.2% in the latest period, and the company has experienced strong growth in its premium division in particular.

Emerging from the government shutdown and with a holiday bump right around the corner, Delta should see strong demand through the end of the year and, thanks to a growing business travel operation, into the new year as well. Its loyalty program is going strong, aiding in customer retention—all of these factors have contributed to executives calling for sustained double-digit operating margin in the current quarter and free cash flow as high as $4 billion.

Delta has a unanimous Buy rating from all 21 analysts reviewing shares. With a price-to-earnings ratio of 7.9, it remains undervalued compared to some other stocks in the transportation space. It's no surprise, then, that the company is projected to see upside potential of more than 28%, making it a top contender for a year-end comeback.

Rising Gas Prices and a Strong Earnings Report Could Initiate Diamondback's Return

Permian Basin-focused oil and gas company Diamondback Energy has been sluggish through most of 2025, and in particular since the pullback in early April. Although it has been trading mostly sideways since then, the stock has started to rebound in the last several weeks, climbing by more than 4% in the past month. Catalyzing this momentum was the company's strong third-quarter earnings report, which saw both earnings per share (EPS) and revenue come in ahead of analyst predictions. The company's latest financial results also highlight its capital discipline, as it reported a 36% reinvestment rate so far this year.

Going forward, Diamondback could see a further boost thanks to rising natural gas prices, which have surged by roughly 21% in just the last quarter. Its exposure to major projects like Competitive Power Ventures should help to fuel demand, and the company's focus on data center contracts may also yield significant growth, should they materialize in the near term.

FANG shares have nearly unanimous support from analysts and upside potential of more than 28%, signaling strong growth is possible in the near future.

Acquisitions Could Send HEICO Shares Upward, But Debt Management Is Key

Unlike the other stocks on this list, aerospace components maker HEICO has performed well already this year, with a YTD return of 31%. Zooming in on share price trends since late June, though, reveals that HEI stock has been essentially flat for several months.

HEICO has been on an acquisition spree, most recently announcing plans to acquire Axillon Aerospace's Fuel Containment Business. Between this and a dividend increase in June, the company's cash position is facing pressure, although operational cash flow has been strong in recent quarters.

While the recent acquisitions help to diversify HEICO's aerospace and defense offerings amid broader industry tailwinds, investors will likely want to see HEICO show that it can manage its mounting debt and keep the cash flowing when it reports earnings in mid-December. Ten out of 17 analysts expect that it can do this successfully, as evidenced by their Buy ratings. HEI shares also have more than 11% in upside potential, according to Wall Street.

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The article "End the Year Strong With These 3 Comeback Champions" first appeared on MarketBeat.