Latest news with #CarnivalCorp
Yahoo
3 days ago
- Business
- Yahoo
Down 59%, Is Carnival Stock a Once-in-a-Generation Investment Opportunity?
Key Points Carnival is experiencing robust demand that's driving continued revenue growth. Soaring profits are helping the business improve its debt profile, reducing financial risk for investors. Even after the stock's strong performance, the valuation is below the market average. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL) (NYSE: CUK) was decimated when the COVID-19 pandemic hit in 2020, as operations were halted to help stop the spread of the virus. Revenue tanked, and the business had to take on more debt to survive with the fate of the economy being a big unknown. However, Carnival is firing on all cylinders these days. This travel stock has soared 202% in the past three years (as of July 22). But shares still trade a gut-wrenching 59% off their peak. At the current price, is Carnival a once-in-a-generation investment opportunity? Smooth sailing As the economy opened back up and consumer behavior normalized following the early days of the health crisis, there was robust demand for travel. The cruise industry has benefited tremendously, with Carnival posting strong financial performance. After sales hit a low of $1.9 billion in fiscal 2021, they came roaring back. Fiscal 2024's revenue of $25 billion was 13 times higher than that total three years prior. And in the most recent quarter (Q2 2025 ended May 31), Carnival registered an 8.6% top-line gain. In fact, the sales figure was a Q2 record. "Our guests continue to look to us as their preferred vacation choice given the amazing experiences our cruise lines provide," CEO Josh Weinstein said in a press release. However, the current economic climate, one where uncertainty is the key word, isn't making things easy. Throw in President Donald Trump's unpredictable trade policies and ongoing geopolitical turmoil, and it makes sense people are pulling back spending. The cruise industry, however, is positioned to continue its success. One reason why is that it's doing a great job attracting younger travelers -- who could become lifelong customers -- as well as first-time cruise goers. And compared to land-based travel alternatives, cruises are generally viewed as providing more bang for your buck. Then there's the fact that spending on cruises makes up less than 3% of the entire global travel industry, leaving upside for further growth. Carnival's improving financial situation With revenue continuing to climb at a healthy clip, Carnival is also posting consistent and rising profitability. Operating income totaled $934 million in the second quarter, another record. It's wild to think that four years ago, during Q2 2021, the company registered an operating loss of $1.5 billion. Things have certainly turned around for the better, which explains why the stock has performed so well. Wall Street expects the good times to keep rolling. The consensus analyst forecast is for Carnival's earnings per share to increase at a compound annual rate of 22.2% between fiscal 2024 and fiscal 2027. Despite huge gains in recent years, this outlook is very encouraging for investors who undoubtedly want to see continued expansion as we look ahead. Improving profitability is helping Carnival fix its financial situation. This means it's been able to slowly reduce its massive debt burden, which now stands at $27.3 billion. The company has refinanced $7 billion worth of debt so far this year. Two major credit ratings agencies have also upgraded Carnival's debt, which is a clear indication of reduced financial risk. Not a once-in-a-generation play Carnival's business continues to perform well, and the future looks bright. The current valuation is also reasonable, with the market asking investors to pay a price-to-earnings ratio of 16 to buy the stock. This represents a substantial discount to the S&P 500 index. However, the stock isn't a once-in-a-generation investment opportunity right now. While Carnival's shares have a good shot at outperforming the market over the next five years, I don't believe it's going to produce life-changing results over the next few decades. That being said, investors could still consider buying Carnival stock. Should you invest $1,000 in Carnival Corp. right now? Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Neil Patel has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy. Down 59%, Is Carnival Stock a Once-in-a-Generation Investment Opportunity? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
Down 59%, Is Carnival Stock a Once-in-a-Generation Investment Opportunity?
Key Points Carnival is experiencing robust demand that's driving continued revenue growth. Soaring profits are helping the business improve its debt profile, reducing financial risk for investors. Even after the stock's strong performance, the valuation is below the market average. 10 stocks we like better than Carnival Corp. › Carnival (NYSE: CCL)(NYSE: CUK) was decimated when the COVID-19 pandemic hit in 2020, as operations were halted to help stop the spread of the virus. Revenue tanked, and the business had to take on more debt to survive with the fate of the economy being a big unknown. However, Carnival is firing on all cylinders these days. This travel stock has soared 202% in the past three years (as of July 22). But shares still trade a gut-wrenching 59% off their peak. At the current price, is Carnival a once-in-a-generation investment opportunity? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Smooth sailing As the economy opened back up and consumer behavior normalized following the early days of the health crisis, there was robust demand for travel. The cruise industry has benefited tremendously, with Carnival posting strong financial performance. After sales hit a low of $1.9 billion in fiscal 2021, they came roaring back. Fiscal 2024's revenue of $25 billion was 13 times higher than that total three years prior. And in the most recent quarter (Q2 2025 ended May 31), Carnival registered an 8.6% top-line gain. In fact, the sales figure was a Q2 record. "Our guests continue to look to us as their preferred vacation choice given the amazing experiences our cruise lines provide," CEO Josh Weinstein said in a press release. However, the current economic climate, one where uncertainty is the key word, isn't making things easy. Throw in President Donald Trump's unpredictable trade policies and ongoing geopolitical turmoil, and it makes sense people are pulling back spending. The cruise industry, however, is positioned to continue its success. One reason why is that it's doing a great job attracting younger travelers -- who could become lifelong customers -- as well as first-time cruise goers. And compared to land-based travel alternatives, cruises are generally viewed as providing more bang for your buck. Then there's the fact that spending on cruises makes up less than 3% of the entire global travel industry, leaving upside for further growth. Carnival's improving financial situation With revenue continuing to climb at a healthy clip, Carnival is also posting consistent and rising profitability. Operating income totaled $934 million in the second quarter, another record. It's wild to think that four years ago, during Q2 2021, the company registered an operating loss of $1.5 billion. Things have certainly turned around for the better, which explains why the stock has performed so well. Wall Street expects the good times to keep rolling. The consensus analyst forecast is for Carnival's earnings per share to increase at a compound annual rate of 22.2% between fiscal 2024 and fiscal 2027. Despite huge gains in recent years, this outlook is very encouraging for investors who undoubtedly want to see continued expansion as we look ahead. Improving profitability is helping Carnival fix its financial situation. This means it's been able to slowly reduce its massive debt burden, which now stands at $27.3 billion. The company has refinanced $7 billion worth of debt so far this year. Two major credit ratings agencies have also upgraded Carnival's debt, which is a clear indication of reduced financial risk. Not a once-in-a-generation play Carnival's business continues to perform well, and the future looks bright. The current valuation is also reasonable, with the market asking investors to pay a price-to-earnings ratio of 16 to buy the stock. This represents a substantial discount to the S&P 500 index. However, the stock isn't a once-in-a-generation investment opportunity right now. While Carnival's shares have a good shot at outperforming the market over the next five years, I don't believe it's going to produce life-changing results over the next few decades. That being said, investors could still consider buying Carnival stock. Should you invest $1,000 in Carnival Corp. right now? Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Globe and Mail
22-07-2025
- Business
- Globe and Mail
Carnival and General Mills have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release Chicago, IL – July 22, 2025 – Zacks Equity Research shares Carnival Corp. CCL as the Bull of the Day and General Mills Inc. GIS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on PayPal Holdings PYPL, Block, Inc. XYZ and Coinbase Global COIN. Here is a synopsis of all five stocks. Bull of the Day: Founded in 1972 and headquartered in Miami, Florida, Zacks Rank #1 (Strong Buy) stock Carnival Corp. operates a cruise and vacation company. Carnival and its affiliates operate the largest and most profitable cruise operator in the world, responsible for carrying nearly half of the global cruise guests. CCL operates in North America, Australia, Europe, and Asia under brands, like AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, Princess Cruises, P&O Cruises, and Seabourn. The company's diverse array of services accommodates vacation guests of various ages, backgrounds, and interests. Carnival Cruises Sees Record Bookings in 2025, Expects Strong 2026 Because Carnival has the strongest brand recognition in the Cruise industry and a market-leading position, it can generate a cost advantage and a higher return on investment than its smaller competitors. In addition, thanks to the combination of improved operational execution across its brands and robust consumer travel demand, the company is recording record-setting bookings in 2025. Zacks Consensus Analyst Estimates suggest that CCL will grow 2025 earnings per share by a strong 39.44%. Meanwhile, bookings for 2026 are tracking in line with the record levels seen this year. Beyond these record bookings, Carnival is charging its highest prices ever, and the company has expanded its booking window further than ever, providing deeper visibility into the future and setting the company up for sustained long-term growth potential. CCL Blows Away Analyst Expectations Savvy investors understand that Wall Street is a game of expectations. Though CCL has been producing robust earnings for several quarters, Wall Street analysts have yet to catch on. For instance, CCL has delivered positive EPS surprises in eleven consecutive quarters and has beaten expectations by an average of 169.85% over the past four. CCL Marketing Campaigns & Fleet Expansion Carnival's strategic investment in marketing is yielding significant returns. Over the past five years, website searches to Carnival's website spiked 60%, helping to attract new and returning guests and maintain market share gains. Meanwhile, Carnival is using its cash hoard to expand its destination footprint worldwide. Cruise Industry Firing on All Cylinders On Wall Street, 'birds of a feather, flock together.' The cruise line industry remains strong, as evidenced by the strong performance by competitors like Viking HoldingsandRoyal Caribbean Group. CCL: Relative Strength and Technical Breakout CCL shares exhibit relative strength, up 21% in 2025, significantly outperforming the S&P 500 Index. Currently, CCL is breaking out of a five-month base structure – a bullish omen. Bottom Line With record bookings extending into 2026, consistent outperformance of analysts' expectations, and a proactive approach to fleet expansion and destination development, CCL is well-positioned for long-term growth. Bear of the Day: Based in Minneapolis, MN, Zacks Rank #5 (Strong Sell) stock General Mills Inc. is one of the largest food producers worldwide, selling its products through supermarkets and retail stores. Its principal product categories include ready-to-eat cereals, convenient meals, and snacks (including grain, fruit, savory snacks, nutrition bars, and frozen foods). Additionally, the company sells ice cream and baking mix ingredients. GIS has also entered the pet food market with its 2018 acquisition of Blue Buffalo and its acquisition of Tyson Foods'pet treat business in 2021. MAHA Movement May Pressure General Mills The 'Mahe America Healthy Again' (MAHA) movement, spearheaded by US Health and Human Services (HHS) Secretary Robert F. Kennedy Jr., could have a significant impact on General Mills' business. Kennedy has long been a proponent of raising awareness about ultra-processed foods (like those produced by General Mills) and eliminating artificial dyes. Thus far, the primary impact of the MAHA campaign on GIS is that the company has committed to removing all artificial dyes from its US product lines by 2027. However, the commitment will require more than simply removing artificial dyes. If General Mills wants to keep its customer base, it will need to spend millions in research and development efforts to discover natural replacements that mimic the color, taste, and texture of its popular products like 'Lucky Charms' cereal. Meanwhile, Kennedy has not yet fully focused crosshairs on ultra-processed foods. Government pressure on this front could lead to more costs in the future for GIS. Either way, the movement is already raising awareness about the danger of these foods and influencing US citizens to eat healthier. GIS Demand Stagnates In addition to the many consumers making healthier choices, General Mills is battling prolonged value-seeking consumer behaviors. Both earnings and net sales declined year-over-year for General Mills, as more consumers opted for less expensive private-label brands. To make matters worse, Zacks Consensus Analyst Estimates suggest that earnings growth is likely remain negative through 2026, and remain stagnant into 2027. General Mills Faces Stiff Competition Beyond the consumer changes and uncertain macroeconomic backdrop, GIS faces stiff competition from food brands like Kraft Heinz, Conagra Brandsand Mondelez International. GIS: Poor Stock Performance Slow-growth, packaged food companies like General Mills are optimal as safe-haven stocks. However, with the US stock market in a robust bull market, GIS is dramatically underperforming the S&P 500 Index and is likely to continue to do so into the future. Bottom Line General Mills faces intense headwinds from evolving consumer preferences amid the 'Make America Healthy Again Movement.' To regain momentum, GIS will need to spend millions in R&D to adapt its product portfolio. Additional content: PayPal Holdings has steadily deepened its crypto involvement since 2020, now offering major tokens and stablecoin services. In April 2025, it added Chainlink (LINK) and Solana (SOL) to its PayPal and Venmo platforms, broadening user access to diverse blockchain ecosystems. This expansion reinforces its strategy to become a go-to gateway for tokenized finance. Central to PayPal's crypto ambition is PayPal USD ('PYUSD'), launched in August 2023. Recently, PayPal announced that it is expanding PYUSD to Layer-2 blockchains, beginning with Arbitrum. This deployment offers developers a low-cost, high-speed option for PYUSD integration, pairing the stablecoin's trusted backing with Arbitrum's efficient transaction capabilities. In June, PayPal announced plans to expand its stablecoin, PYUSD, to the Stellar blockchain, pending approval from the New York State Department of Financial Services. Stellar is recognized for enabling fast transactions, minimal fees and practical applications in everyday financial use. This move would enhance PYUSD's payment capabilities by offering a cost-efficient, fast alternative to Ethereum and Solana, enabling broader use in commerce, micro-financing, and global transactions through improved integration and scalability. A strategic tie up with Coinbase in April 2025 allows fee-free PYUSD purchases, 1:1 redemption, and co-exploration of new use cases for PYUSD in DeFi and onchain platforms. This alliance brings PYUSD directly into the exchange ecosystem, enhancing consumer, merchant and institutional adoption, especially as Coinbase waives fees. Earlier, PayPal also rolled out crypto for business accounts, enabling merchants to buy, hold, sell and transfer crypto assets directly via the platform. How Are Block and Coinbase Global Expanding in This Space? Block, Inc. is set to join the S&P 500, marking another milestone in crypto's push into the financial mainstream. Block has integrated Bitcoin through its Cash App, enabling peer to peer transactions and investing. It invested heavily in BTC treasury holdings and rolled out Bitcoin lending pilot programs. Its Square Crypto initiative focuses on Bitcoin developer grants and Lightning Network adoption to boost Bitcoin's payment utility. Coinbase Global, the largest U.S. crypto exchange, offers trading, staking, custodial services and launched its Payments platform, including stablecoin support. It waived fees for PYUSD, expanded institutional services and invests in Layer 2 scaling (like Base) to bolster real world crypto use. PYPL's Price Performance, Valuation and Estimates Shares of PayPal have declined 13.1% year to date, underperforming both the broader industry as well as the S&P 500 Index. From a valuation standpoint, PayPal shares are trading cheap, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 13.70X compared with the Zacks Financial Transaction Services industry's 21.96X. PayPal's estimate revisions reflect a positive trend. The Zacks Consensus Estimate for second-quarter and full-year 2025 and full-year 2026 EPS has been revised upward over the past week. The Zacks Consensus Estimate for 2025 EPS suggests 9.46% growth year over year, while the same for 2026 calls for 11.46% growth year over year. At present, PayPal carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged for information about the performance numbers displayed in this press release. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report General Mills, Inc. (GIS): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis Report
Yahoo
21-07-2025
- Business
- Yahoo
Zacks.com featured highlights Carnival, Levi Strauss, Vodafone and Invesco
For Immediate Release Chicago, IL – July 21, 2025 – The stocks in this week's article are Carnival Corp. CCL, Levi Strauss & Co. LEVI, Vodafone Group VOD and Invesco IVZ. 4 Finest PEG-Rated GARP Stocks to Boost Your Portfolio Now In the equity market, investments need to be prudently hedged to overcome uncertainties and limit losses related to external shocks. A question that arises often is whether one should resort to a value strategy that seeks discounted stocks or opt for growth investing in times of extreme market instability. The investing track of the Oracle of Omaha over the past few decades and his gradual shift from being a pure-play value investor to a GARP (growth at a reasonable price) investor might give us all the answers. Per the GARP theory, the strategic mingling of growth and value-investing principles gives us a hybrid strategy, offering an ideal investment by utilizing the best features of both. What GARPers look for is whether or not the stocks are somewhat undervalued and have solid, sustainable growth potential (Investopedia). Several stocks that have surged significantly in recent years have demonstrated the overwhelming success of this hybrid investing strategy over pure-play value and growth investments. Here, we will discuss the success of four such stocks. These include Carnival Corp., Levi Strauss & Co., Vodafone Group and Invesco. A Few More Words on GARP GARP investing gives priority to one of the popular value metrics — the price/earnings growth (PEG) ratio. Although it is categorized under value investing, this strategy follows the principles of both growth and value investing. The PEG ratio is defined as (Price/ Earnings)/Earnings Growth Rate It relates the stocks' P/E ratio with the future earnings growth rates. While P/E alone gives an idea of stocks that are trading at a discount, PEG, while adding the growth element to it, helps identify stocks with solid future potential. A lower PEG ratio, preferably less than 1, is always better for GARP investors. Say for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential. Unfortunately, this ratio is often neglected due to investors' limitations in calculating the future earnings growth rate of a stock. There are some drawbacks to using the PEG ratio though. It does not consider the very common situation of changing growth rates, such as the forecast of the first three years at a very high growth rate, followed by a sustainable but lower growth rate over the long term. Hence, PEG-based investing can be even more rewarding if some other relevant parameters are also taken into consideration. Here are four out of the 11 stocks that qualified the screening: Carnival: Headquartered in Miami, FL, Carnival operates as a cruise and vacation company. As a single economic entity, Carnival Corporation & Carnival plc forms the largest cruise operator in the world. It is the world's leading leisure travel firm and carries nearly half of the global cruise guests. The company operates in North America, Australia, Europe and Asia. Carnival can also be an impressive GARP investment pick with its Zacks Rank #2 and a Value Score of A. Apart from a discounted PEG and P/E, the stock has an impressive long-term historical growth rate of 28.5%. You can see the complete list of today's Zacks #1 Rank stocks here. Levi: It designs, markets and sells apparel and accessories for men, women, and children globally. Its offerings include jeans, pants, tops, jackets, footwear, and more under the Levi's, Dockers, Signature by Levi Strauss & Co., Denizen, and Beyond Yoga brands. LEVI also licenses its trademarks for products like belts, bags, outerwear and kidswear. Levi stock can also be an impressive GARP investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, LEVI has a solid long-term historical growth rate of 9.5%. Vodafone: The company provides telecom services across Germany, the UK, Europe, Turkey and South Africa. It offers mobile, fixed and connectivity solutions, including IoT, cloud, edge computing and digital services. Vodafone also operates M-PESA, a mobile money platform in Africa, and provides international voice, roaming and infrastructure services. Vodafone stock can be an impressive value investment pick with its Zacks Rank #1 and a Value Score of A. Apart from a discounted PEG and P/E, VOD also has an impressive long-term historical growth rate of 11.8%. Invesco: Headquartered in Atlanta, GA, Invesco Ltd. is an independent investment manager with $1.84 trillion in AUM as of March 31, 2025. The company operates in over 20 countries and offers a wide range of investment products, including ETFs, fixed income, equities, private markets, multi-asset solutions and QQQ. Invesco can also be an impressive value investment pick with its Zacks Rank #1 and a Value Score of B. Apart from a discounted PEG and P/E, the stock also has a solid long-term expected growth rate of 6.3%. You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge. The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out. Click here to sign up for a free trial to the Research Wizard today. For the rest of this Screen of the Week article please visit at: Follow us on Twitter: Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Contact: Jim Giaquinto Company: Phone: 312-265-9268 Email: pr@ Visit: provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Vodafone Group PLC (VOD) : Free Stock Analysis Report Invesco Ltd. (IVZ) : Free Stock Analysis Report Levi Strauss & Co. (LEVI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
19-07-2025
- Business
- Globe and Mail
2 Bargain Stocks to Buy Now
Key Points There are multiple catalysts that could send Carnival stock higher. Alibaba is one of the most undervalued big tech giants in the world. 10 stocks we like better than Carnival Corp. › The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) hit new highs in July, but there are plenty of solid companies in growing industries that could be bargain buys right now. Let's look at two stocks that are reporting solid earnings results while their valuations appear too good to pass up. 1. Carnival Carnival (NYSE: CCL) has enjoyed a strong recovery over the past few years. The stock is up 258% since the end of 2022, following eight consecutive quarters of record revenue. There are still catalysts ahead that can support more gains for investors buying shares at the current $30 share price. Despite challenges in certain sectors of the economy, there appears to be no slowing in demand for cruises. Carnival raised its full-year guidance for net yields to 5%, which is a key measure of profitability for a cruise company. Bookings are pacing in line with last year's record levels and at historically high prices, benefiting yields and earnings. As a result, analysts are expecting full-year adjusted earnings per share to land at $2, up 40% over last year. One of the negatives for Carnival is its high debt burden. It ended the last quarter saddled with $27 billion of total debt. However, its debt-to-equity ratio peaked at 5.75 in 2023 and has come down to 2.72. Higher profits are helping the business reduce debt, which lowers Carnival's risk profile and can lead to higher earnings from lower interest expense. Carnival also has some things in the works to drive more demand, such as the launch of its exclusive destination in Grand Bahama, Celebration Key. Looking ahead to 2026, Carnival will launch an expansion of its RelaxAway, Half Moon Cay in the Bahamas. Carnival is not just a post-pandemic recovery play. It is clearly positioning itself to deliver long-term growth for shareholders. On that note, Carnival is tapping into the growth of the experience economy, as more people opt to spend their money on experiences rather than material goods. Looking ahead to fiscal 2029, analysts expect Carnival 's earnings to reach $3.10, or grow at a compound annual rate of nearly 17% from fiscal 2024. With the stock trading around 10 times those estimates, there is still significant upside potential from current share prices. 2. Alibaba Alibaba (NYSE: BABA) is one of China's top tech companies, with leading market positions in e-commerce and cloud computing. The stock has started to recover after falling well off its previous highs, but it still looks undervalued. Despite Alibaba posting a 7% year-over-year increase in revenue last quarter, and even stronger earnings growth of 23%, the stock trades at a forward earnings multiple of 12. The low valuation reflects geopolitical risks and increasing competition from rival e-commerce platforms. However, the conservative valuation seems too low for a few reasons. While direct sales on Alibaba's domestic e-commerce marketplaces were down 1% year over year last quarter, the segment's total revenue grew 9%, as Alibaba raised fees it charges to sellers on its marketplaces. This fee-based model provides Alibaba leeway to keep revenue growing during tough times. It's also continuing to show great international expansion potential, with AliExpress growing revenue by 22% year over year last quarter. Moreover, management expects the international e-commerce business to achieve profitability in the current fiscal year. The real strength for Alibaba right now, and why its stock could soar, is growth at Alibaba Cloud. The cloud business posted a strong 18% year-over-year revenue increase last quarter, and it could accelerate further, as demand for artificial intelligence (AI) remains strong. AI-related services have grown revenue at triple-digit rates for seven straight quarters, and it's seeing demand across multiple industries like internet, retail, and manufacturing. In April, Alibaba launched its new Qwen3 AI model, which offers deeper reasoning capabilities and faster responses. Alibaba stock traded higher earlier this year with the announcement that it is partnering with Apple to bring its AI to the iPhone in China. The stock has fallen 23% since reaching a 52-week high in February, but another better-than-expected quarter, especially with respect to Alibaba Cloud and AI, could send the stock to new highs in the second half of 2025. Should you invest $1,000 in Carnival Corp. right now? Before you buy stock in Carnival Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Carnival Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
