Investors looking for promising stocks to buy in May might want to consider two affordable options: Carnival and Nu Holdings. Despite trading under $10, these two stocks are showing strong signs of recovery and growth potential.
Carnival: Recovering from the Pandemic Downturn
Carnival, the largest of the cruise line stocks, is finally recovering from the pandemic-related downturn. After posting larger deficits than expected during the COVID-19 crisis, the company is expected to return to profitability during the seasonally potent summer quarter this year. Revenue is also expected to soar 72% to $20.9 billion in its fiscal year.
The company has $8.1 billion in liquidity and is trading for less than four times estimated fiscal 2027 earnings. This makes Carnival an attractive option for investors looking for a bargain. With the global vaccine rollout underway, the company’s prospects for a strong recovery in the coming months are looking good.
Nu Holdings: A Fast-Growing Provider of Digital Financial Services
Nu Holdings, a provider of digital financial services in Brazil, Mexico, and Colombia through its Nubank platform, is another promising stock trading under $10. The company ranks as the fifth biggest financial institution in Brazil and the sixth largest in Latin America, boasting 80 million accounts.
Nu Holdings has a strong Net Promoter Score and has seen average monthly revenue per customer increase by 37% to $8.20 over the past year. The company’s revenue surged by 142% in the most recent quarter, and it has achieved consecutive adjusted basis profits in the previous two quarters.
The company’s success can be attributed to its customer-centric approach and focus on offering transparent and accessible financial services. With the digital financial services market expected to grow rapidly in Latin America in the coming years, Nu Holdings is well-positioned to continue its growth trajectory.
Investing in Promising Stocks
Before investing in any stock, investors ought to conduct their due diligence. However, for those looking for affordable options with growth potential, Carnival and Nu Holdings are definitely worth considering.
While there are risks associated with investing in any stock, these two companies are showing strong signs of recovery and growth potential. With the global economy gradually recovering from the pandemic, now could be a good time to invest in these promising stocks before their prices rise.
