2 Growth Stocks Down 38% and 65% to Buy Right Now

Amidst an S&P 500 reaching all-time highs, the article identifies Coupang (CPNG) and Remitly Global (RELY) as compelling, undervalued growth opportunities. Remitly is disrupting the international remittance market, demonstrating 40% year-over-year send volume growth to $18.5 billion and 34% revenue growth, with projections for revenue to double to $3 billion and achieve $600 million in net earnings, making its current $3.55 billion market cap appear "dirt cheap." Concurrently, Coupang, building an "Amazon of East Asia" model, reported 19% constant currency revenue growth and 22% gross profit growth, driven by aggressive reinvestment and expansion into Taiwan, and is seen as reasonably priced at a $57 billion market cap against $32 billion in annual revenue despite its stock being down from IPO.

Analysis

The broader market, particularly the S&P 500, has reached new all-time highs, climbing 16% year-to-date, driven by AI sentiment and raising overvaluation concerns. Amidst this, the article identifies Coupang (CPNG) and Remitly Global (RELY) as undervalued growth stocks, both positioned as market share gainers with significant upside potential.

Remitly Global demonstrates strong market share capture in international remittances, with send volume growing 40% year-over-year to $18.5 billion last quarter, contrasting with Western Union's 3% decline. Revenue increased 34% year-over-year, reaching $1.46 billion over the past 12 months. Despite a 65% stock decline from highs, the article dismisses concerns regarding stablecoins and immigration, projecting revenue to double to $3 billion within five years and achieve $600 million in annual net earnings from its current $3.55 billion market cap.

Coupang, dubbed the "Amazon of East Asia," reported 19% year-over-year revenue growth on a constant currency basis and 22% gross profit growth last quarter. Aggressive reinvestment in new product categories and international expansion, notably Taiwan's 100%+ revenue growth, underpins its strategy. Despite a slim operating margin ($149 million on $8.5 billion revenue), its $57 billion market cap is deemed reasonable given $32 billion in annual revenue and growth trajectory, even with the stock down 38% from its 2021 IPO.

Key Decisions for Investors

• Investors should consider initiating or increasing positions in CPNG and RELY, given their strong growth metrics and perceived undervaluation in an otherwise frothy market.
• Monitor Remitly's market share gains against legacy players and progress towards its $3 billion revenue and $600 million net earnings targets, while assessing the actual impact of stablecoins and immigration trends.
• For Coupang, track the success of its international expansion into Taiwan and new product categories, evaluating how these investments translate into improved operating margins and sustained revenue acceleration.