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 bear markets -- like the one investors are experiencing in April 2025 for the Nasdaq Composite Index -- growth stocks are going to tumble amid a lot of volatility. As of this writing, many of your favorite growth stocks are down 20%, 30%, or more in just a short few months.

Buying into weakness like this can feel scary. What if you don't perfectly time the bottom? That isn't the right question to ask. When everyone panics and their time horizons shrink to the next week, that is the time to extend your time horizon and think about buying stocks to hold for the next 10 years.

Many growth stocks that are down big look cheap at the moment and could provide fantastic returns over the next five to 10 years. Here are two growth stocks I think can go parabolic and deliver fantastic gains for your portfolio.

Worried about tariffs impacting consumer spending in the United States? Then you might like Coupang (NYSE: CPNG), a South Korean online marketplace with similarities to Amazon. It does not sell into the United States and -- unless South Korea imposes tariffs on China and other Asian nations -- should see minimal disruptions from these tariff policies that are upending U.S. markets.

Taking away the tariff noise, Coupang is a phenomenal business with a fantastic track record of growth. Despite foreign currency headwinds when calculating financials in U.S. dollars, Coupang's revenue boomed 24% year over year to $30.3 billion in 2024. With the U.S. dollar starting to depreciate versus foreign currencies, this headwind may turn into a tailwind in 2025.

Shoppers love the Coupang marketplace because of its wide selection and ultra-fast delivery times. It also offers video streaming, grocery delivery, and even installation of appliances and items such as tires for your car. Not even Amazon offers this level of service.

With only a small sliver of the overall South Korean retail market, Coupang has plenty of room to grow in the years to come. And it is beginning to generate free cash flow, at $1 billion in 2024. Within a couple of years, I expect Coupang's revenue to reach $50 billion; $5 billion in earnings, or just a 10% profit margin, is achievable on this revenue base, which is what management is guiding for.

Today, Coupang has a market cap of under $40 billion. This means it trades at a forward price-to-earnings ratio (P/E) below 8, a dirt cheap figure for a fast-growing company like Coupang. At these cheap prices, I think Coupang stock is ready to go parabolic over the next decade.