Best Stock to Buy Right Now: Carnival vs. Disney
Leisure and entertainment giants Carnival (NYSE: CCL) and The Walt Disney Company (NYSE: DIS) offer an abundance of options for anyone thinking about taking a vacation this summer. The two companies can also represent compelling investments, with both stocks gaining momentum in recent months.
Can the rally keep going? Let's discuss whether shares of Carnival or Disney are the best buy for your portfolio right now.
The case for Carnival stock
As the world's largest cruise line operator, Carnival is capitalizing on an industry renaissance, with data suggesting that this form of vacation travel is more popular than ever. Efforts to optimize its fleet and enhance financial efficiency are paying off, with the company posting multiple operating records.
In the first quarter (for the period ended Feb. 28), Carnival management noted "incredibly strong demand," which helped results outperform prior guidance. Revenue of $5.8 billion increased 7.5% year over year, fueled by climbing capacity and higher pricing. Carnival ended the quarter with $7.3 billion in customer deposits for future voyages, surpassing last year's $7 billion record.
Even more impressive has been Carnival's ability to control costs, translating into surging profitability. Adjusted earnings per share (EPS) of $0.13 reversed a loss of $0.14 in the prior-year quarter, underscoring the company's newfound financial consistency. The expectation is for these trends to continue. The launch of Celebration Key, a new private island destination opening in July, and the delivery of three new ships by 2028 should drive further growth.
Carnival is guiding for full-year EPS of $1.83, representing $2.5 billion in adjusted net income and marking a 29% increase from 2024's result. The outlook is encouraging as it should allow the company to improve its balance sheet. The current total debt position of $27 billion is favorably down $4 billion over the past year. Deleveraging should support a higher valuation for Carnival stock, which trades at just 13 times its 2025 EPS forecast as a forward price-to-earnings (P/E) ratio, notably at a large discount to Disney stock's forward P/E of 20.
The attraction of Carnival as an investment is its combination of compelling value and growth potential. Investors confident that Carnival is sailing in the right direction have plenty of reasons to own the stock for the long run.
CCL PE Ratio (Forward) data by YCharts.
The case for Disney stock
The last few years have been far from a fairytale for Disney shareholders, as the media giant has navigated numerous challenges. Despite record results from its experiences segment that includes the theme park empire and the growing cruise line business, the entertainment business has been forced to contend with volatile box office trends and a reset of expectations in streaming.
Disney stock is down 7% over the past five years, marking a major underperformance compared to the broader market. Yet, the latest trends point to what may finally be the start of a sustained comeback.
In Disney's fiscal Q2 (for the period ended March 29), revenue increased 7% year over year while adjusted EPS surged 20%. The big story was the robust momentum from the streaming offerings where Disney+ added 1.4 million customers during the quarter, brushing aside concerns that recent price hikes would push subscribers away.
Hulu and the ESPN digital properties have also been growth drivers, with Wall Street cheering Disney's efforts to bundle packages. Disney is targeting EPS of $5.75 for fiscal 2025, an increase of 16% from last year, with management projecting optimism that the company's strategic initiatives are gaining traction.
Compared to Carnival, Disney stock benefits from its more diversified profile backed by a globally recognized brand. Ultimately, investors who believe the company is just getting started on its plan to dominate streaming media have a great reason to buy the stock today for a diversified portfolio.
Verdict: Carnival is my pick
Picking between Carnival and Disney as the better stock to buy is tough, as I'm bullish on both and predict each will deliver positive returns in the second half of the year. If forced to pick just one, I predict Carnival stock will outperform on the upside. In my view, Carnival's growth story is still underappreciated by the market, which means its stock may be undervalued and could be poised to break out higher.
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 $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!*
Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%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 June 9, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
NASH Clinical Trial Analysis: Key Insights into Rich Pipeline Featuring 80+ Companies and 80+ Therapies
DelveInsight's, 'Nonalcoholic Steatohepatitis Pipeline Insight, 2025' report provides comprehensive insights about 80+ companies and 80+ pipeline drugs in Nonalcoholic Steatohepatitis pipeline landscape. It covers the NASH Pipeline drug profiles, including clinical and nonclinical stage products. It also covers the NASH Pipeline Therapeutics assessment by product type, stage, route of administration, and molecule type. It further highlights the inactive pipeline products in this space. Discover the latest drugs and treatment options in the NASH Pipeline. Dive into DelveInsight's comprehensive report today! @ NASH Pipeline Outlook Key Takeaways from the NASH Pipeline Report In May 2025, Novo Nordisk A/S announced a study will last for about 5 years. Participants will have up to 21 clinic visits and 9 phone calls with the clinical staff during the study. Some of the clinic visits may be spread over more than one day. Participants with other chronic liver diseases cannot take part in this study. Women cannot take part in the study if they are pregnant, breast-feeding or plan to become pregnant during the study period. In May 2025, Akero Therapeutics Inc. conducted a phase 2b study Evaluating the Safety and Efficacy of Efruxifermin in Non-Cirrhotic Subjects With Nonalcoholic Steatohepatitis (NASH). DelveInsight's NASH Pipeline report depicts a robust space with 80+ active players working to develop 80+ pipeline therapies for NASH treatment. The leading NASH Companies such as Guangdong Raynovent Biotech, Dr. Falk Pharma GmbH, Enyo Pharma, Viking Therapeutics, Eli Lilly and Company, Sagimet Biosciences, Terns, Sinew Pharma, Madrigal Pharmaceuticals, Hepion Pharmaceuticals, Poxel SA, Pfizer, CytoDyn, Altimmune, Oramed, Ltd, PharmaKing, Can-Fite Biopharma, Cirius Therapeutics and others. Promising NASH Pipeline Therapies such as Semaglutide, HEC96719, DA-1241, Sitagliptin, Saroglitazar Magnesium 2mg, Vonafexor, PF-06835919, BMS-986036 and others. Stay ahead with the most recent pipeline outlook for NASH. Get insights into clinical trials, emerging therapies, and leading companies with NASH@ NASH Treatment Drugs NASH Emerging Drugs Profile Lanifibranor: Inventiva Pharma Lanifibranor, Inventiva's lead product candidate, is an orally-available small molecule that acts to induce antifibrotic, anti-inflammatory and beneficial vascular and metabolic changes in the body by activating all three peroxisome proliferator-activated receptor (PPAR) isoforms, which are well-characterized nuclear receptor proteins that regulate gene expression. Lanifibranor is a PPAR agonist that is designed to target all three PPAR isoforms in a moderately potent manner, with a well-balanced activation of PPARα and PPARδ, and a partial activation of PPARγ. While other PPAR agonists target only one or two PPAR isoforms for activation. The FDA has granted Breakthrough Therapy and Fast Track designation to lanifibranor for the treatment of NASH. Currently, the drug is in Phase III stage of its clinical trial for the treatment of NASH. MSDC-0602K: Cirius Therapeutics MSDC-0602K, a second-generation oral insulin sensitizer, is designed to selectively modulate the mitochondrial pyruvate carrier (MPC) while minimizing direct PPAR-gamma activation. The MPC mediates at the cellular level the effects of over nutrition, a major cause of Nonalcoholic fatty liver disease NAFLD/NASH and Type 2 diabetes. In preclinical studies, modulation of the MPC has been shown to improve insulin sensitivity, lipid metabolism, and inflammation. Currently the drug is in Phase III stage of Clinical trial for the treatment of NASH. TERN-501 is a THR-β agonist with high metabolic stability, enhanced liver distribution and greater selectivity for THR-β compared to other THR-β agonists in development. Agonism of THR-β increases fatty acid metabolism via mitochondrial oxidation and affects cholesterol synthesis and metabolism. As a result, THR-β stimulation has the ability to reduce hepatic steatosis and improve serum lipid parameters including LDL cholesterol and triglycerides. In vivo NASH studies in a rodent model have demonstrated that low-doses of TERN-501 achieved complete resolution of steatosis and reductions in serum lipids, hepatic inflammation and fibrosis. TERN-501 has high liver distribution and is 23-fold more selective for THR-β than for THR-α activation in a cell free assay, thereby minimizing the risk of cardiotoxicity and other off-target effects associated with non-selective THR stimulation. Currently, the drug is in Phase II stage of its clinical trial for the treatment of NASH. HTD 1801: HighTide Biopharma The company's lead drug candidate, HTD1801, is a first-in-class new molecular entity (ionic salt of two active moieties). It is a novel orally active ionic salt of berberine and ursodeoxycholic acid, substantially reduced liver fat while improving glycemic control and other cardiometabolic biomarkers in adults with nonalcoholic steatohepatitis (NASH) and type 2 diabetes (T2DM). Currently, it is in Phase II trials for the treatment of primary sclerosing cholangitis (PSC), and nonalcoholic steatohepatitis (NASH). The NASH Pipeline Report Provides Insights into The report provides detailed insights about companies that are developing therapies for the treatment of NASH with aggregate therapies developed by each company for the same. It accesses the Different therapeutic candidates segmented into early-stage, mid-stage, and late-stage of development for NASH Treatment. NASH Companies are involved in targeted therapeutics development with respective active and inactive (dormant or discontinued) projects. NASH Drugs under development based on the stage of development, route of administration, target receptor, monotherapy or combination therapy, a different mechanism of action, and molecular type. Detailed analysis of collaborations (company-company collaborations and company-academia collaborations), licensing agreement and financing details for future advancement of the NASH market Explore groundbreaking therapies and clinical trials in the NASH Pipeline. Access DelveInsight's detailed report now! @ New NASH Drugs NASH Companies Guangdong Raynovent Biotech, Dr. Falk Pharma GmbH, Enyo Pharma, Viking Therapeutics, Eli Lilly and Company, Sagimet Biosciences, Terns, Sinew Pharma, Madrigal Pharmaceuticals, Hepion Pharmaceuticals, Poxel SA, Pfizer, CytoDyn, Altimmune, Oramed, Ltd, PharmaKing, Can-Fite Biopharma, Cirius Therapeutics and others. Nonalcoholic Steatohepatitis pipeline report provides the therapeutic assessment of the pipeline drugs by the Route of Administration. Products have been categorized under various ROAs such as Oral Intravenous Subcutaneous Parenteral Topical NASH Products have been categorized under various Molecule types such as Recombinant fusion proteins Small molecule Monoclonal antibody Peptide Polymer Gene therapy Unveil the future of NASH Treatment. Learn about new drugs, NASH Pipeline developments, and key companies with DelveInsight's expert analysis @ NASH Market Drivers and Barriers Scope of the NASH Pipeline Report Coverage- Global NASH Companies- Guangdong Raynovent Biotech, Dr. Falk Pharma GmbH, Enyo Pharma, Viking Therapeutics, Eli Lilly and Company, Sagimet Biosciences, Terns, Sinew Pharma, Madrigal Pharmaceuticals, Hepion Pharmaceuticals, Poxel SA, Pfizer, CytoDyn, Altimmune, Oramed, Ltd, PharmaKing, Can-Fite Biopharma, Cirius Therapeutics and others. NASH Pipeline Therapies- Semaglutide, HEC96719, DA-1241, Sitagliptin, Saroglitazar Magnesium 2mg, Vonafexor, PF-06835919, BMS-986036 and others. NASH Therapeutic Assessment by Product Type: Mono, Combination, Mono/Combination NASH Therapeutic Assessment by Clinical Stages: Discovery, Pre-clinical, Phase I, Phase II, Phase III Get the latest on NASH Pipeline Therapies and clinical trials. Download DelveInsight's in-depth pipeline report today! @ NASH Companies, Key Products and Unmet Needs Table of Contents Introduction Executive Summary Nonalcoholic Steatohepatitis: Overview Pipeline Therapeutics Therapeutic Assessment Nonalcoholic Steatohepatitis– DelveInsight's Analytical Perspective Late Stage Products (Phase III) Lanifibranor: Inventiva Pharma Drug profiles in the detailed report….. Mid Stage Products (Phase II) TERN-501: Terns Pharmaceuticals Drug profiles in the detailed report….. Early Stage Products (Phase I) LY3849891: Eli Lilly and Company Drug profiles in the detailed report….. Preclinical and Discovery Stage Products Drug name : Company name Drug profiles in the detailed report….. Inactive Products Nonalcoholic Steatohepatitis Key Companies Nonalcoholic Steatohepatitis Key Products Nonalcoholic Steatohepatitis- Unmet Needs Nonalcoholic Steatohepatitis- Market Drivers and Barriers Nonalcoholic Steatohepatitis- Future Perspectives and Conclusion Nonalcoholic Steatohepatitis Analyst Views Nonalcoholic Steatohepatitis Key Companies Appendix About Us DelveInsight is a leading healthcare-focused market research and consulting firm that provides clients with high-quality market intelligence and analysis to support informed business decisions. With a team of experienced industry experts and a deep understanding of the life sciences and healthcare sectors, we offer customized research solutions and insights to clients across the globe. Connect with us to get high-quality, accurate, and real-time intelligence to stay ahead of the growth curve Media Contact Company Name: DelveInsight Business Research LLP Contact Person: Yash Bhardwaj Email: Send Email Phone: 09650213330 Address: 304 S. Jones Blvd #2432 City: Las Vegas State: NV Country: United States Website:
CTV News
an hour ago
- CTV News
City of London staff are looking for public input to help form a new downtown plan
The city is forming a new plan for the downtown core and asking for input from residents and businesses. CTV's Gerry Dewan has the details.
Globe and Mail
an hour ago
- Globe and Mail
Telus fails to deliver on Entwistle's IPO-based growth strategy
Would anyone buy another initial public offering promoted by long-serving Telus Corp. T-T chief executive officer Darren Entwistle? If the answer to that question is no, Mr. Entwistle's growth strategy at Telus is dead in the water. And it's hard to imagine investors stepping up for future Telus spinoffs after Tuesday's announcement that the parent company wants to put troubled offspring Telus International (Cda) Inc. TIXT-T out of its public market misery. Telus is offering to buy out shareholders in its subsidiary at a steep 86-per-cent discount to the price of its IPO, done with considerable fanfare just four years ago. Mr. Entwistle, a dominating personality who has been at the helm for 25 years, built Telus beyond its legacy phone networks by investing billions in subsidiaries focused on digital customer services, health care and agriculture. The idea was to incubate these businesses inside the Vancouver-based telecom, then launch them as public companies, with Telus shareholders reaping rewards from the value created on Mr. Entwistle's watch. Telus International – rebranded in 2024 as Telus Digital Experience – was meant to be the first in a series of spinoffs. Telus Health is up next, with an IPO anticipated as early as 2026. The incubator concept initially looked like a winner, as Telus Digital went public in 2021 at US$25 per share in what the parent company proudly heralded as the largest tech IPO in Toronto Stock Exchange history. At the time, Telus Digital's US$8.5-billion market capitalization rivalled that of the parent telecom. Execution failed to match ambition. Telus Digital proved a case study in value destruction. The company's challenges include a core business that runs call centres for clients such as retailers, hotels and banks. Artificial intelligence-based systems now dominate this space. Telus Digital proved slow to pivot, and customers moved on. On Wednesday, Telus reversed field by making a 'non-binding indication of interest,' or IOI, to acquire the 42.6 per cent of Telus Digital shares it doesn't own for US$3.40 each. Telus Digital shares promptly jumped 24 per cent Thursday to close at US$3.67 on expectations the parent company will be forced to goose its bid to get a deal done. Mr. Entwistle put a brave face on Telus Digital's face plant. In announcing the IOI, he said reintegrating the unit's tech expertise will benefit all of Telus's businesses, including telecom. While that may be true, buying back the subsidiary is an admission of failure. Telus set lofty goals for its diversification strategy, then failed to hit them. Telus proposes buying back Telus Digital for more than US$400-million Telus Health prepares to stand alone after years of acquisitions 'Today's rather dismal proposal has no 'congratulatory' terms that were to be found at the time of the IPO,' said analyst Tyler Tebbs at Tebbs Capital in a report. He said Telus is only offering to repurchase its subsidiary after failing to find a buyer for the business. Memories are long in financial circles. Mr. Tebbs compared the Telus offer to the ill-fated M&A at Time Warner Inc. in the recent past. He said the buyback 'is yet another example of a telecom/media company reversing a transaction done in much better times at the expense of shareholders.' In public markets, you're only as good as your last deal. Fund mangers got caught up in a craze for all things digital during the early days of the pandemic. That dynamic set the stage for a successful IPO at Telus Digital. The second time around, institutional and retail investors will be far more skeptical about buying when Mr. Entwistle is selling. To get an IPO done at Telus Health or Telus Agriculture, the parent company will likely be forced to accept a steep discount to the underlying value of the business, which defeats the purpose of the incubator concept. Yet without the ability to exit investments, Mr. Entwistle is running a debt-heavy conglomerate, anchored by a well-run but slow-growth telecom network that qualifies as critical infrastructure for the Canadian economy. Outside of founder-run businesses, it's hard to name a domestic public company more identified with its CEO than Telus. At Telus Digital, Mr. Entwistle's IPO-based growth strategy failed to deliver. The Telus board, chaired by former deputy prime minister John Manley, needs to ask hard questions about what comes next and who is best positioned to lead a business that has become the vision of a single executive.
