Carnival and Alibaba: Undervalued Stocks with Growth Potential

Carnival Corp and Alibaba are two undervalued big tech giants with multiple catalysts for growth. Carnival has reported solid earnings, raised its full-year guidance for net yields, and expects full-year adjusted earnings per share to land at $2. Alibaba is one of China's top tech companies with leading market positions in e-commerce and cloud computing. Both stocks have significant upside potential from current share prices.

Carnival Corp (CCL) and Alibaba Group (BABA) are two prominent companies in their respective sectors, both offering significant opportunities for investors. Carnival, a cruise line operator, and Alibaba, a leading e-commerce and cloud computing company, have shown resilience and growth despite market challenges.

Carnival Corp (CCL)

Carnival Corp, currently holding a Zacks Rank #2 (Buy) and a Value grade of A, presents a compelling case for value investors. The company's P/E ratio of 13.73 is significantly lower than the industry average of 20.03 [1]. Additionally, its PEG ratio of 0.60 and P/B ratio of 3.42 indicate strong valuation metrics compared to its peers [1]. Carnival's solid earnings and recent full-year guidance raise for net yields and adjusted earnings per share ($2) further bolster its attractiveness [2].

Alibaba Group (BABA)

Alibaba Group, one of China's top tech companies, is well-positioned in e-commerce and cloud computing. The company's stock has shown resilience despite global trade tensions and geopolitical uncertainties. Experts note that while tariffs can impact international trade, Alibaba's strong domestic e-commerce sector and innovative product offerings continue to drive growth [3]. Moreover, Alibaba's cloud computing services, which reported 18% revenue growth in the first quarter of 2025, present a significant growth catalyst [4].

Both Carnival and Alibaba have demonstrated strong fundamentals and growth potential, making them attractive investment opportunities. While market conditions and geopolitical risks may pose challenges, their robust business models and innovative strategies position them well for future growth.

References:

[1] https://finance.yahoo.com/news/investors-undervaluing-carnival-ccl-now-134003727.html
[2] https://www.marketscreener.com/quote/stock/CARNIVAL-CORPORATION-12003/news/Carnival-Raises-3-Billion-via-Notes-Offering-50532562/
[3] https://finance.yahoo.com/news/could-alibaba-stock-rise-experts-130328606.html
[4] https://www.nasdaq.com/articles/top-china-tech-stocks-add-your-portfolio-impressive-returns