Growth Stocks

Best Stock to Buy Right Now: Carnival vs. Chewy

Published

1 month ago

September 21, 2025

When it comes to consumer-driven stocks, investors are spoiled for choice. From travel and entertainment to pet care and e-commerce, the opportunities are broad. Two standout names in this space are Carnival Corporation (NYSE: CCL), the world’s largest cruise operator, and Chewy Inc. (NYSE: CHWY), a leader in online pet care retail.

Both companies have demonstrated resilience and growth in recent years, but if you had to pick just one for your portfolio today, which would it be? Let’s dive deeper into the case for each.

Carnival: A Cruise Giant Making a Strong Comeback

Few industries were hit as hard as the cruise sector during the pandemic. For Carnival, it was a storm that halted operations worldwide and forced the company to take on massive amounts of debt to survive.

Fast forward to today, and Carnival’s turnaround story is impressive:

Debt management: Carnival has been aggressively repaying its debt, prioritizing high-interest borrowings to strengthen its balance sheet.
Fleet upgrades: The company has retired older ships and replaced them with modern, fuel-efficient vessels.
Revenue surge: In its latest quarter, Carnival reported a record $6.3 billion in revenue.
Customer deposits: Deposits reached $8.5 billion, the highest ever, showing strong consumer confidence.
Future demand: Bookings for next year are already at record levels, and fares are higher than ever.

Importantly, Carnival achieved the financial targets of its turnaround plan 18 months ahead of schedule, with adjusted return on invested capital at its highest in two decades.

Lower interest rates are another tailwind. Not only do they help Carnival manage debt repayment, but they also support consumers’ ability to spend on discretionary items like vacations.

Carnival’s valuation remains attractive too, trading around 15x forward earnings, which is modest given its growth trajectory.

Still, investors must acknowledge the elephant in the room: debt risk. While Carnival’s strategy is solid, the company’s large debt load remains a vulnerability if market conditions turn unfavorable.

Chewy: The Pet Care Powerhouse

On the other side of the consumer spectrum is Chewy, the go-to online retailer for pet owners. With its wide range of food, treats, toys, and healthcare services, Chewy has built a strong moat in a growing industry.

Key highlights from Chewy’s performance:

Autoship advantage: Chewy’s Autoship program — which lets customers schedule automatic reorders — now represents 83% of total sales, ensuring predictable revenue streams.
Sales growth: In the latest quarter, Chewy posted an 8% revenue increase to $3.1 billion, while Autoship sales surged 15%.
Profitability milestone: Chewy became profitable a few years ago and continues to strengthen its bottom line.
New revenue streams: The launch of Chewy veterinary clinics has expanded its reach beyond e-commerce, attracting new customers and deepening existing relationships.
Strong balance sheet: Chewy has zero debt and holds $590 million in cash, giving it financial flexibility and stability.

Despite stiff competition from traditional retailers, Chewy’s loyal customer base, combined with its subscription-driven model, provides a long-term growth runway.

Valuation-wise, Chewy trades at about 29x forward earnings, higher than Carnival’s multiple. But that premium reflects its debt-free position and consistent growth outlook.

Carnival vs. Chewy: Which Stock Wins?

Both Carnival and Chewy are solid plays in the consumer sector — but they cater to very different markets.

Carnival is a recovery story, benefiting from pent-up travel demand, improved margins, and easing financial pressure. However, its high debt remains a lingering risk.
Chewy is a growth-and-stability story. With a subscription-driven model, loyal customers, new ventures like vet clinics, and zero debt, Chewy offers long-term resilience.

From a valuation standpoint, Carnival is cheaper, but that comes with more financial risk. Chewy is pricier, but its debt-free balance sheet and stable recurring revenue make it the safer long-term bet.

Final Takeaway

If you’re building a diversified portfolio, both stocks could play a valuable role — Carnival for growth potential in the travel rebound, and Chewy for defensive growth in the booming pet care industry.

But if forced to choose just one stock right now, Chewy edges out Carnival due to its financial stability, strong customer loyalty, and diversified growth strategy.

⚠️ Disclaimer

This article is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult with a professional financial advisor before making investment decisions.

Growth Stocks

The Best Growth ETF to Invest $2,000 in Right Now

Published

2 months ago

September 7, 2025

Aniket Pahwa

If you’re seeking a cost-effective way to invest in high-growth U.S. companies, the Vanguard Growth ETF (VUG) stands out as a compelling option. With a low expense ratio and a portfolio concentrated in leading tech stocks, VUG offers significant growth potential.

Key Highlights

Expense Ratio: 0.04% — one of the lowest in its category.
Top Holdings: NVIDIA (12.65%), Microsoft (12.19%), Apple (9.49%), Amazon (6.73%), Meta Platforms (4.63%).
Inception Date: January 26, 2004.
Assets Under Management: Approximately $186.95 billion.
Dividend Yield: Approximately 0.43%.
1-Year Return: 27.85%.
YTD Return: 12.99%

Performance Overview

Since its inception, VUG has delivered an average annual return of around 9.21%, outperforming the S&P 500’s 10.4% average over the same period. Over the past decade, its returns have been even more impressive. For instance, a $10,000 investment in VUG in January 2004 would have grown to approximately $67,004 by September 2025.

Investment Considerations

Growth-Focused Portfolio: VUG primarily invests in large-cap U.S. companies exhibiting strong growth characteristics, particularly in the technology sector.
Low-Cost Investment: With an expense ratio of just 0.04%, VUG is one of the most cost-effective growth ETFs available.
Dividend Yield: While VUG offers a modest dividend yield of approximately 0.43%, its primary appeal lies in capital appreciation rather than income generation.
Market Volatility: Given its concentration in the technology sector, VUG may experience higher volatility compared to more diversified ETFs.

Final Thoughts

For investors seeking exposure to high-growth U.S. companies at a low cost, the Vanguard Growth ETF (VUG) presents a compelling option. Its strong performance history, low expense ratio, and focus on leading tech stocks make it a suitable choice for long-term growth-oriented portfolios.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult your financial advisor before making investment decisions.