2 Reasonably Priced Growth Stocks Billionaires Are Buying

In the current market landscape, finding reasonably priced growth stocks can be a challenge, especially with valuations well above historical norms. However, some billionaire investors have been scooping up shares of two retail growth stocks that appear to be undervalued. Let's take a closer look at Coupang and Skechers, and explore why these billionaires are buying these stocks.

1. Coupang (CPNG)
Coupang, South Korea's leading online retail company, has been attracting the attention of billionaire investors Howard Marks of Oaktree Capital Management and Chase Coleman of Tiger Global Management, who have been buying shares in the fourth quarter. The stock rebounded last year following strong financial results, with revenue growing 20% year over year in the third quarter and 25% excluding currency changes.

Coupang controls nearly 40% of South Korea's e-commerce market, according to Research and Markets, and its active customer count reached 22.5 million last quarter, up 11% year over year. The company's unique delivery system, which can deliver packages within hours to customers living in densely populated cities, is a competitive advantage that other e-commerce companies may not be equipped to handle.

Despite its dependency on South Korea, Coupang has expanded operations to Taiwan, Singapore, China, India, and Europe. Management has seen great progress in Taiwan, where the company is putting a lot of investment into growth in that market. The stock's price-to-sales (P/S) multiple of 1.6 is lower than the average P/S range that Amazon traded at in its early years of growth, indicating that investors can expect the stock to follow the company's growth and translate to excellent returns over time.



2. Skechers (SKX)
Top footwear brand Skechers has been growing earnings at double-digit rates, yet the stock trades at just 16 times earnings. In the fourth quarter, Andreas Halvorsen of Viking Global Investors bought a new position in the stock. Skechers has built a solid footwear brand over the last few decades, focusing on style, comfort, and quality at affordable prices, which has been the hallmark of its brand.

In the most recent quarter, sales grew 13% year over year, with earnings surging 26%. The company's expansion into performance footwear is another appealing factor, as it has signed several professional athletes across basketball, golf, and baseball, which could raise brand awareness. However, the stock has fallen recently over the potential impact of U.S. tariffs on imports from China. Despite this, analysts still expect Skechers to report earnings growth of 16% in 2025.



In conclusion, Coupang and Skechers appear to be reasonably priced growth stocks that billionaire investors are buying. Both companies have strong growth prospects, unique competitive advantages, and attractive valuations. However, it is essential to consider other factors, such as market conditions, competition, and the company's ability to execute on its growth strategies, when making investment decisions. As always, it is crucial to do thorough research and consider your risk tolerance before investing in any stock.