2 Stocks Down 57% and 77% to Buy Right Now and Hold for the Next Decade

Key Points

• Lower interest rates will help this cruise leader pay off its high debt.

• Turnaround plays can be risky, but backing the right ones can be hugely rewarding.

• 10 stocks we like better than Carnival Corp. ›

As in most years, investors have had a lot of potential risk factors to navigate in 2025. That hasn't stopped major indexes from posting huge gains across the stretch. Along those lines, the S&P 500 index has jumped roughly 12% across this year's trading. Meanwhile, the Nasdaq Composite is up approximately 15% across the stretch.

Despite top indexes surging to new record highs and many high-profile companies notching new valuation records across this year's trading, there are still some intriguing companies with share prices down more than 50% from their peaks.

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 »

Image source: Getty Images.

Carnival stock: 57% off highs

Jennifer Saibil (Carnival): Carnival (NYSE: CCL) is the largest cruise company in the world, and it continues to report record growth and demand. But its high debt, racked up when it was forced to close down early in the pandemic, continues to worry investors.

They have been coming back slowly. Carnival stock is 57% off its all-time highs, but it's up nearly 100% over the past year. Investors are impressed with its business rebound and how well it's paying off its debt. But there's a lot further to go to get to its previous high, which creates opportunity for long-term investors.

The company has been investing in its fleet and its destinations to attract new and repeat business. It recently launched an exclusive destination called Celebration Key, and it's expanding and enhancing other exclusive locations. It has a new ship called Carnival Festivale set to debut in 2027, featuring Sunsation Point, an outdoor family zone filled with activities, including a water park. It's also improving its loyalty program to boost engagement.

The results demonstrate momentum. In the 2025 fiscal second quarter (ended May 31), Carnival beat guidance for net yields, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted net income, and it reported record revenue and operating income. Deposits reached an all-time high of $8.5 billion, and 93% of 2025 occupancy is booked at high ticket prices.

Management had developed a strategy called SEA change with target goals in sustainability, non-GAAP (adjusted) EBITDA, and return on invested capital that it achieved a year and a half early, and it raised guidance across metrics for the full year.

Now for the debt piece. Carnival ended the quarter with more than $27 billion in debt, well above its prepandemic levels. But it's made strides in paying it down, including refinancing $7 billion so far this year and prepaying $350 million out of $1.4 billion due next year. Carnival stock has been rising as interest rates go down, and if they get cut next week, it will be even easier for it to finish paying off the debt.

Right now, the debt is weighing on investor confidence, and Carnival stock is trading at a low price of less than 14 times forward one-year earnings. It's a great time for new investors to take a position.

Unity Software: 77% off highs

Keith Noonan (Unity Software): No doubt about it, Unity Software (NYSE: U) stock is a turnaround play. The business has undergone a major strategic pivot since CEO Matthew Bromberg stepped into the company's top leadership role last year.

While the software specialist still has a lot of proving to do, it's been posting some encouraging results. These positive performance indicators have helped the company's share price more than double over the last year of trading. But despite the big gains, the company's share price isn't even close to the level of its former peak. As of this writing, Unity stock is still down 77% from the all-time high it reached in November 2021.

Unity's core business revolves around video game creation and digital marketing tools. Due to some poorly executed and received growth bets and monetization strategies, the company has faced some big setbacks. On the other hand, the business continues to have a strong position in the game-engine services space and appears to be making some smart moves.

Unity has shut down or sold off business units that were producing little in the way of sales growth and dragging on earnings. The company has also launched a new digital marketing platform that is heavy on artificial intelligence (AI) tools and features. Thanks to its new AI marketing platform, the company's advertising network posted a 15% sequential sales increase in the second quarter. With the stock still trading at heavily beaten-down levels and signs that its revised digital marketing strategy is quickly delivering improved results, Unity stock looks like a smart buy right now.

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 $661,694!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,082,963!*

Now, it’s worth noting Stock Advisor’s total average return is 1,067% — a market-crushing outperformance compared to 190% 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 September 15, 2025

Jennifer Saibil has no position in any of the stocks mentioned. Keith Noonan has positions in Unity Software. The Motley Fool has positions in and recommends Unity Software. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.