Choosing the right stocks can be challenging, especially when there are so many appealing options. Like deciding on purchases during a shopping trip, most investors can’t buy every attractive stock they come across. Fortunately, selecting just a couple of strong candidates can effectively guide you in building a solid investment portfolio. This method can eventually lead to owning shares in numerous successful companies that contribute to long-term wealth growth.

With that in mind, I want to share two of my top stock picks for today. If I had to choose two stocks for the remainder of this year, these would be my selections. Both companies offer reasonable prices relative to their future potential and are well-positioned to benefit from a stronger economy. Let’s examine each option.

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1. Amazon

Amazon (NASDAQ: AMZN) has secured a leading position in both the e-commerce and cloud computing sectors. The company has grown its Prime membership program to over 200 million members, creating a strong base of loyal customers who benefit from perks like free same-day and one-day delivery.

Efforts to maintain low prices and enhance delivery speed have contributed to high retention rates. In fact, a Statista report showed that 97% of Prime members renewed their subscriptions in the first quarter of last year. As interest rates decline, consumer purchasing power is expected to rise, which bodes well for Amazon’s continued success.

AWS, or Amazon Web Services, remains a critical profit center, recently achieving over a $105 billion annual revenue run rate, thanks in part to the company’s investments in artificial intelligence. Overall, Amazon generates substantial revenue and profit each year.

Given these circumstances, the stock is attractively priced at 39 times forward-earnings estimates.

2. Carnival

Carnival (NYSE: CCL) (NYSE: CUK) faced significant struggles during the early pandemic, having to pause operations, which led to heavy losses and increased debt. However, the company has made impressive strides in recovering and proving that cruising remains a popular vacation choice.

Recently, Carnival reported record numbers, with third-quarter revenue hitting $7.9 billion and operating income reaching a record $2.2 billion. The demand for cruises remains strong, with advanced bookings for 2025 surpassing previous records, even at higher price points.

The company’s revival can be attributed to strategic decisions like replacing older ships with more fuel-efficient models, cutting down on new orders, and focusing on profitable routes. Since the beginning of 2023, Carnival has proactively reduced its debt by over $7 billion, pushing towards an investment-grade status by the end of 2026.

With demand for cruises increasing and a potential decrease in interest rates from the Federal Reserve, Carnival stands to gain. Today, the stock trades at about 15 times forward-earnings estimates, making it a reasonable investment for a company poised for significant growth.

Exciting Opportunities Await

Have you ever felt like you missed out on owning successful stocks? If so, this is your chance to consider investing.

Occasionally, our team of analysts issues a “Double Down” stock recommendation for businesses they believe are on the verge of significant growth. If you feel as if you missed your chance to invest, now is the ideal time to act before it’s too late. The performance of previous recommendations is compelling:

• Amazon: A $1,000 investment made when we last recommended it in 2010 would now be worth $21,266!*
• Apple: A $1,000 investment from our doubling down in 2008 would have grown to $43,047!*
• Netflix: Investing $1,000 when we last doubled down in 2004 would now be valued at $389,794!*

Currently, we are issuing “Double Down” alerts for three remarkable companies, and the opportunity may not arise again soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of October 14, 2024

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.