Even with the market making significant gains, there are still several large stocks that have dropped over 50% from their peak values.
This year, investors have had to assess various risk factors. The S&P 500 index has risen about 12%, while the Nasdaq Composite has increased by roughly 15% during the same period. Despite a number of well-known companies hitting record valuations, there remain attractive investment opportunities among companies whose stock prices are down more than half from their highs.
Carnival Stock: 57% off peak
Carnival Corp (CCL) is the largest cruise line in the world and is reporting strong demand and growth. However, the significant debt from the early pandemic shutdowns continues to concern investors.
The stock is currently down 57% from its peak but has seen nearly 100% growth over the past year. Investors seem optimistic about the business’s recovery and its efforts to pay down debt, although it still has a way to go to reach its previous highs. This situation may offer favorable opportunities for long-term investors.
Carnival is actively investing in its fleet and destinations to draw new and returning customers. Recently, they introduced an exclusive destination called Celebration Key and are enhancing other unique locations. A new cruise ship, Carnival Festival, is set to launch in 2027, featuring an outdoor entertainment zone for families, including a water park. The company is also refining its loyalty programs to enhance customer engagement.
In the second quarter of 2025, Carnival achieved record revenue and operating income, exceeding expectations in several financial metrics, including net yields and adjusted income. Deposits have reached an all-time high of $8.5 billion, with 93% of the occupancy for 2025 already booked at premium prices.
Carnival has adopted a strategy called Sea Change, focusing on sustainability and clear financial targets. However, the company ended the quarter with over $27 billion in debt. They have started reducing this by refinancing $7 billion this year and planning to pay down a portion of next year’s obligations early. If interest rates continue to decrease, it may further facilitate their debt repayment efforts.
The company’s current stock price reflects investor caution regarding its debt, trading at a low multiple of its earnings. This could be an opportune moment for new investors to consider buying in.
Unity Software: 77% off peak
Unity Software (U) is undergoing significant changes, particularly since CEO Matthew Bromberg took the helm last year. The company has shown some promising results despite ongoing challenges.
Stock prices have rebounded to more than double since last year, but Unity’s shares remain significantly lower than their all-time highs, which were reached in November 2021. They are down 77% from that peak.
Unity primarily focuses on video game development and digital marketing tools but has faced difficulties due to some ineffective growth strategies. Yet, the company maintains a strong foothold in game engine services and is making strategic moves to enhance its position.
The company has divested or closed units that haven’t generated sufficient growth, while it has launched a new AI-driven digital marketing platform. This new initiative has helped the company’s ad network achieve a 15% sequential sales increase in the second quarter. With its stock heavily discounted, the revised strategy seems to be paying off, suggesting that Unity Stock is now a wise investment choice.
