All major market indexes are trading near new highs. This has resulted in a much better evaluation than historical norms. Current price to revenue (P/E) ratio ratio S&P 500 It sits at about 30 – almost twice the historic average.
Finding affordable growth stocks in 2025 has become difficult, but one sector that has announced some good trades is retail. Here we present two retail growth stocks that billionaires were buying in the fourth quarter.
1. Coupen
couple (cpng) -1.23%)) A leading online retailer in Korea, the company's strong growth and opportunities for international expansion have attracted the attention of two prominent billionaires. Oaktree Capital Management's Howard Marks and Tiger Global Management's Chase Coleman purchased them in the fourth quarter.
The stock recovered last year following strong financial results. Excluding Coupang's recent acquisition of luxury commodity market Farfetch, revenues rose 20% year-on-year in the third quarter, up 25%, excluding currency changes.
Coupang manages almost 40% of the Korean e-commerce market, according to research and markets. This is expected to grow from $124 billion in 2023 to $182 billion by 2028. I'm continuing to discover Coupang. The number of active customers reached 22.5 million in the last quarter, up 11% year-on-year.
One of the risks of Kupangu is its dependence on Korea. To provide a satisfactory return to investors over the long term, it needs to prove that its business model works in other regions and may encounter more competition. So far, Coupang has expanded its operations to Taiwan, Singapore, China, India and Europe.
Coleman and Marks may have value in Coupang's unique delivery system. The system can deliver packages to customers living in a large city within hours. Management has so far made significant progress in Taiwan, which has invested a lot in growth in its market.
These investors will not buy stocks if they see no value. The multiple of the 1.6 share price to the sale price (P/S) is lower than the average P/S range Amazon traded in its early growth. In this valuation, investors can expect the stock to continue growing the company, which should lead to excellent returns over time.
2. Skehees
Top Footwear Brands Skehees (SKX) -4.14%)) Although double-digit interest rates increase revenue, stocks trade with just 16 times the revenue. In the fourth quarter, Viking global investor Andreas Halvorsen purchased a new position in the stock.
Skechers' stock appears to be undervalued by investors. Despite an annual revenue increase of 14% over the past decade, stocks have consistently traded at a price return rate of less than 20, which appears to be unfair.
The company has built a solid footwear brand over the past decades. Customers value the style, comfort and quality at the affordable prices that are characteristic of the Skechers brand. In the most recent quarter, revenues increased 13% year-on-year, while revenues increased 26%.
The numbers clearly suggest that Skechers deserve a higher rating. This is especially true as the company expands to performance footwear. You can sign several professional athletes across basketball, golf and baseball to raise brand awareness.
However, stocks have recently declined due to the potential impact of US tariffs on imports from China. The company photographs shoes in China and Vietnam, which could affect short-term revenue. Stocks have been declining since their fourth quarter revenue report in January on lower than expected guidance. However, analysts still hope that Skechers will report a 16% revenue growth rate for 2025.
Viking Global expects Skechers to navigate tariffs better, perhaps by adjusting the supply chain, as before. Over the long term, investors should expect the stock to deliver profits on par with the company's earnings. S&P 500 average.
