Coupang and Skechers: Reasonably Priced Growth Stocks Billionaires Are Buying

 

POINT

  • Coupang (CPNG): South Korea’s largest e-commerce company, growing at 20%+ annually, with global expansion in progress.
  • Skechers (SKX): Consistent double-digit growth (Q4 revenue +13%, net income +26%), yet remains undervalued at P/E 16.
  • Both companies have attracted interest from top investors and show strong long-term growth potential.
  • However, Coupang must prove its business model outside of Korea, while Skechers faces potential U.S. tariff risks.

Details: Coupang (CPNG) - Growth Potential and Challenges

source : pixabay
1️⃣ Dominant E-Commerce Platform in South Korea, but Global Expansion Is Key

Coupang controls 40% of South Korea’s e-commerce market, which is expected to grow
from $124B in 2023 to $182B by 2028.

  • Q3 2024 revenue grew 20% YoY (25% adjusted for currency fluctuations).
  • 22.5M active customers, up 11% YoY.

However, Coupang's dependence on the South Korean market is a major risk.

  • To sustain high growth rates, global expansion is necessary.
  • The company is currently expanding into Taiwan, Singapore, China, India, and Europe.

2️⃣ Unique Logistics Model but Intense Competition

  • Coupang’s same-day and next-day delivery system gives it a competitive edge.
  • However, scaling this model internationally will be challenging, with strong competition from Amazon, Alibaba, and Shopee (Sea Limited).

3️⃣ Valuation: Undervalued Compared to Peers?

  • Coupang’s P/S ratio is 1.6, significantly lower than Amazon’s during its high-growth phase.
  • This suggests the stock may still have room to grow, but only if global expansion succeeds.
  • If international growth slows down, Coupang’s stock could lose momentum.

Details: Skechers (SKX) - A Hidden Value Opportunity?

1️⃣ Strong Brand & Consistent Growth

Skechers has maintained a 14% annualized revenue growth rate over the past decade.

  • Q4 2024: Revenue +13%, net income +26% YoY.
  • Expanding into performance footwear (basketball, golf, baseball) with athlete endorsements.

2️⃣ Undervalued Despite Strong Fundamentals

Skechers trades at a P/E ratio of 16,
which has remained consistently low despite its strong growth.

  • The S&P 500 average P/E is 30, suggesting that Skechers may be significantly undervalued.
  • Investors expect brand expansion and increased global market share to drive future gains.

3️⃣ Short-Term Risk: U.S. Tariff Concerns

The stock has recently declined due to concerns over potential U.S. tariffs on Chinese imports.

  • Skechers manufactures most of its shoes in China and Vietnam, making it vulnerable to tariff hikes.
  • However, the company has previously optimized its supply chain to mitigate these risks.

Investor Perspective: Should You Buy Coupang & Skechers?

✅ Coupang (CPNG) - Bull Case
✔ Market leader in South Korean e-commerce.
✔ Global expansion into Taiwan, Singapore, and beyond.
✔ P/S ratio of 1.6—lower than Amazon’s during its early growth years.

⚠️ Coupang Risks
❌ Highly dependent on the South Korean market, global success is not guaranteed.
❌ Faces intense competition from Amazon, Alibaba, and Shopee.

✅ Skechers (SKX) - Bull Case
✔ Expanding brand recognition through athlete endorsements and performance footwear.
✔ Strong revenue and net income growth, with a low P/E ratio of 16.
✔ Potential for valuation re-rating toward S&P 500 averages.

⚠️ Skechers Risks
❌ Tariff risks could impact short-term profitability.
❌ Consistently undervalued by the market—P/E re-rating may take time.

Future Outlook & Investment Strategy

📌 Coupang: Watch international expansion performance before committing to long-term investment.
📌 Skechers: A solid buy for long-term investors, but tariff concerns could create short-term volatility.
📌 Aggressive investors may buy now, while conservative investors should wait for price dips.

Conclusion: Growth Potential Exists, but Risks Remain

  • Coupang is a dominant e-commerce player but must prove global scalability.
  • Skechers is undervalued, with strong growth but tariff-related headwinds.
  • Long-term investors could see strong returns, but short-term risks must be managed.

🚀 Best strategy:

  • Coupang: Monitor global expansion and buy if international growth accelerates.
  • Skechers: Take advantage of short-term dips due to tariff concerns.

Source: https://www.fool.com/investing/2025/02/22/2-growth-stocks-billionaires-buying/


korean post : https://nowday.tistory.com/69

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