Allow me to cut to the chase: Duolingo (DUOL 4.40%), MercadoLibre (MELI +0.53%), and Carnival Corp. (CCL +0.41%) are cheaper than you think. As the market claws its ways to new highs this week, these stocks are still being left behind.
Duolingo, MecadoLibre, and Carnival are trading 81%, 31%, and 21% below their 52-week highs. Let's take a closer look at these three bargain stocks that are ready to run with the bulls for the rest of this year and beyond.
Image source: Getty Images.
1. Duolingo
Remember when everybody was on the Duolingo learning app and the stock was rolling? The former is still true. The platform had a record 52.3 million monthly active users at the start of this year, a 30% improvement from where it was a year ago. Revenue rose 35% in the fourth quarter and 39% for all of 2025.
Despite its actual ascent, the stock has gone the other way. Duolingo has been caught in wave of selling in SaaS stocks, even though it's not a premium-priced enterprise software offering. Just 12.3 million of its users are currently paying a few bucks a month for access to an enhanced version of Duolingo, while the other 77% enjoy it for free. That doesn't seem fair.
NASDAQ: DUOL
Key Data Points
The shares have shed more than four-fifths of their value since last year's springtime peak. Duolingo stock is now trading for just 12 times trailing earnings. This may seem like a screaming bargain, but let's wrap this up with a spoonful of caution.
Bookings growth is slowing. Duolingo sees revenue decelerating to 25% for the quarter that ended in March, rising 15% to 18% for all of 2026. Top-line growth is being cut in half this year, and the bottom line is worse. Duolingo is investing in growth and engagement, and margins will get squeezed in the process. Analysts see earnings per share rising just shy of 15%, and it could get worse if Duolingo needs to spend more.
NASDAQ: MELI
Key Data Points
2. MercadoLibre
MercadoLibre stock isn't as cheap as Duolingo, but it is cheaper than it's been in a long time. The Latin American fintech is trading at 27 times next year's earnings. The class act of the region, MercadoLibre has seen its empire expand from its e-commerce roots to excel in digital payments, logistics, and a growing slate of financial offerings.
MercadoLibre is also facing some margin-gnawing challenges. Brazil is getting competitive in e-commerce, and for now that means MercadoLibre is taking a hit by lowering order minimums for free deliveries. MercadoLibre is still growing, but it has missed Wall Street profit targets for three consecutive quarters.
NYSE: CCL
Key Data Points
3. Carnival
Things are cruising along for Carnival. It has now fully overcome the pandemic shutdown. It even recently reinstated its quarterly dividend.
Like Duolingo, Carnival stock is trading for 12 times trailing earnings. This year's net income will be in line with last year,'s but the world's largest cruise line is going for just 10 times next year's target. With its bottom-line results trouncing expectations for 11 consecutive quarters, the future is bright beyond the near-term hiccups of rising fuel costs and sea travel concerns.
