Unmissable Chance in a Decade: My Top Pick for Phenomenal Growth Investment in 2025
Welcome to 2025, investors looking to boost their portfolios! With the new year, it's a great time to reassess your holdings and explore opportunities. In 2023 and 2024, technology stocks soared, thanks to AI's boom. However, with the major indexes close to record highs, finding worthwhile investments might be challenging in this sector.
Instead, I suggest looking into Coupang (CPNG -1.17%). Despite its undervalued status, this South Korean e-commerce giant is a treasure trove for long-term growth investors. Here's why:
Focus on East Asian e-commerce dominance
Based in South Korea, Coupang is leading the e-commerce market. Its delivery network mimics that of Amazon, ensuring quick and reliable delivery. But Coupang goes the extra mile, offering features such as food delivery within hours and even 7 a.m. deliveries when orders are placed before midnight. And the cherry on top? Subscribers can enjoy these perks for just around $5.75 per month, making Coupang an incredibly appealing option with 22.5 million active users in a population of 51.8 million.
Revenue growth has skyrocketed for Coupang since 2021, reaching $28.9 billion during the previous 12 months. And the company isn't resting on its laurels—it's now venturing into Taiwan, replicating its winning strategy with impressive results.
Enhancing profitability with robust earnings growth
Coupang's revenue growth might be impressive, but what truly sets it apart is its earnings expansion. The company is aiming for an EBITDA margin of at least 10% over the long term. Although margins have stagnated in recent quarters due to investments in Taiwan, Coupang still reported a substantial improvement compared to its past losses. With an operating income of $124 million in the first nine months of 2024, it's evident that this company is making strides towards profitability.
Finding value in an undervalued stock
Currently valued at $40.3 billion, Coupang might appear overpriced when considering its trailing-12-month EPS of $0.24. However, it's essential to consider that this is a hypergrowth company that's only now starting to turn a profit. Analysts predict that Coupang's revenue will reach $35.3 billion by 2025, giving the stock a forward P/S ratio of 1.1—a significantly more attractive entry point for a promising market leader in the e-commerce sector.
In conclusion, hypergrowth investors looking to capitalize on a value-packed growth stock should consider adding Coupang to their portfolios. Complete with an efficient delivery network, compelling customer offerings, and promising expansion plans, Coupang has all the makings of a solid long-term investment.
To further diversify your investment portfolio in the finance sector, you might want to consider allocating funds towards Coupang's stock. Despite its high valuation, the company's strong financial performance and potential for future growth make it an attractive investment opportunity for those seeking value in the undervalued segment.
In light of the current market landscape where finding worthwhile technology investments might be challenging, exploring opportunities in companies like Coupang could prove beneficial for long-term investors seeking to boost their portfolios.
