Nasdaq Correction: 2 Winning Stocks on Sale Right Now

It's never fun to see the value of your investments go down during a market sell-off. The Nasdaq Composite (NASDAQINDEX: ^IXIC) recently dipped into correction territory, defined as falling at least 10% from recent highs. But the longer you invest, the more you come to see these dips as opportunities to make more money over the long term.

There are several growing companies offering solid value that could lead to outstanding returns from this point. Here are two reasonably valued growth stocks that could be worth a lot more in 10 years than they are today.

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1. Coupang

Amazon is a dominant online retailer, but it can't control the entire $4 trillion global e-commerce market. Coupang (NYSE: CPNG) has developed expertise in serving densely populated cities that has allowed it to dominate the e-commerce market in South Korea. Coupang's focus on making disciplined investments in opportunities that it believes will produce returns for shareholders makes it a promising growth stock to hold for the long term.

It's following a similar strategy as Amazon to offer customers additional services, or what the company calls "developing offerings." These include food delivery (Coupang Eats), digital entertainment (Coupang Play), and payment services (Coupang Pay). Revenue from these services grew 124% year over year last quarter (excluding recent acquisition of Farfetch), which is the result of building a loyal customer base.

The growth in developing offerings is consistent with management's approach to invest in new opportunities that can lead to higher profits and grow the value of the business. Coupang's gross profit grew 43% year over year in 2024, faster than the company's 24% revenue growth. Management expects further margin expansion in 2025 from increasing efficiency, use of automation, and growth in higher-margin service offerings.

Coupang is also demonstrating the potential to expand beyond South Korea. Taiwan's fourth-quarter revenue grew 23% quarter over quarter. Coupang recently went forward with the launch of its WOW membership program in Taiwan, offering free shipping and other perks, indicating that management sees a clear path to long-term success in that market. Coupang also recently launched food delivery in Japan through Coupang Eats. Management is clearly on the hunt for profitable markets where its unique delivery system and service offerings can have success.

The stock, at this writing, trades at a reasonable price-to-sales multiple of 1.39. With the shares trading 15% off their recent highs, while the business has recently grown revenue at more than 20% year over year, investors should earn excellent returns over the next several years.

2. PDD Holdings

PDD Holdings (NASDAQ: PDD) has given Alibaba, China's leading e-commerce company, a run for its money. PDD operates the Pinduoduo and Temu platforms, which are changing how people shop online, and it's delivering explosive growth in the process. The stock trades at just a single-digit earnings multiple that could prove to be a bargain.

The company recognized early on that people were shopping less on desktop computers and more on their phones. It built its platform from the ground up for mobile devices, while following a consumer-to-manufacturer model that provides customers deep discounts on merchandise. Revenue tripled over the last three years, and it's not done.

Pinduoduo has its roots in agriculture, as it allows customers to buy directly from farmers. This gives the company a powerful advantage in helping small businesses and farmers sell more goods, which leads to more growth and investment in bringing higher-quality items to consumers. This creates a positive growth cycle that doesn't seem to be reflected in the share price.

Another key aspect of Pinduoduo's strategy is that it aims to combine the appeal of deep discounts with the fun of shopping with friends. It encourages customers to share items with their friends on social media and form shopping groups to get special discounts. This gamification strategy distinguishes the customer experience from competing platforms.

Because the company generates revenue by charging transaction and marketing fees to merchants, it is highly profitable. Profit margin has doubled to nearly 30% over the last three years. Analysts expect its earnings per share to grow at an annualized rate of 21%. With the shares trading 39% off their previous peak, investors can buy shares for just 12 times the company's earnings.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. John Ballard has positions in Coupang and PDD Holdings. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Alibaba Group and Coupang. The Motley Fool has a disclosure policy.