2 Growth Stocks That Could Go Parabolic

Brett Schafer, The Motley Fool

Sun, Apr 6, 2025, 9:45 AM 5 min read

Growth stocks are not for the faint of heart. In carnivore markets -- similar the 1 investors are experiencing successful April 2025 for the Nasdaq Composite Index -- maturation stocks are going to tumble amid a batch of volatility. As of this writing, galore of your favourite maturation stocks are down 20%, 30%, oregon much successful conscionable a abbreviated fewer months.

Buying into weakness similar this tin consciousness scary. What if you don't perfectly clip the bottom? That isn't the close question to ask. When everyone panics and their clip horizons shrink to the adjacent week, that is the clip to widen your clip skyline and deliberation astir buying stocks to clasp for the adjacent 10 years.

Many maturation stocks that are down large look inexpensive astatine the infinitesimal and could supply fantastic returns implicit the adjacent 5 to 10 years. Here are 2 maturation stocks I deliberation tin spell parabolic and present fantastic gains for your portfolio.

Worried astir tariffs impacting user spending successful the United States? Then you mightiness like Coupang (NYSE: CPNG), a South Korean online marketplace with similarities to Amazon. It does not merchantability into the United States and -- unless South Korea imposes tariffs connected China and different Asian nations -- should spot minimal disruptions from these tariff policies that are upending U.S. markets.

Taking distant the tariff noise, Coupang is simply a phenomenal concern with a fantastic way grounds of growth. Despite overseas currency headwinds erstwhile calculating financials successful U.S. dollars, Coupang's gross boomed 24% twelvemonth implicit twelvemonth to $30.3 cardinal successful 2024. With the U.S. dollar starting to depreciate versus overseas currencies, this headwind whitethorn crook into a tailwind successful 2025.

Shoppers emotion the Coupang marketplace due to the fact that of its wide enactment and ultra-fast transportation times. It besides offers video streaming, market delivery, and adjacent installation of appliances and items specified arsenic tires for your car. Not adjacent Amazon offers this level of service.

With lone a tiny sliver of the wide South Korean retail market, Coupang has plentifulness of country to turn successful the years to come. And it is opening to make escaped currency flow, astatine $1 cardinal successful 2024. Within a mates of years, I expect Coupang's gross to scope $50 billion; $5 cardinal successful earnings, oregon conscionable a 10% nett margin, is achievable connected this gross base, which is what absorption is guiding for.

Today, Coupang has a marketplace headdress of nether $40 billion. This means it trades astatine a guardant price-to-earnings ratio (P/E) beneath 8, a ungraded inexpensive fig for a fast-growing institution similar Coupang. At these inexpensive prices, I deliberation Coupang banal is acceptable to spell parabolic implicit the adjacent decade.