Billionaire investor Warren Buffett emphasizes the value of investing in undervalued stocks. Currently, Carnival Corp. (NYSE: CCL) is trading at a significant discount, 76% off its previous peak, despite reaching pre-pandemic revenue and operating profit levels. The company reported an operating income of $560 million in Q2 2023, nearly five times higher than the same quarter in 2022, with expectations for continued growth and improved pricing into 2025.
Additionally, Roku (NASDAQ: ROKU) is also seeing a substantial drop of 87% from its peak. The streaming platform now has 81 million households and reported a revenue increase to $3.6 billion over the last three years, alongside a tripling of free cash flow to $426 million. The stock is currently trading at a price-to-free-cash-flow multiple of 20, with management anticipating accelerating revenue growth in 2025 due to its growing user base and potential recovery in the advertising market.
