The Ultimate Growth Stock to Buy With $1,000 Right Now

If the meteoric rise of most of the United States' biggest and best-known technology stocks has you leery of buying any of them, you're not alone.

The average forward-looking price-to-earnings ratio of the so-called "Magnificent Seven" stocks currently stands at just over 30, according to Yardeni Research, dragging the S&P 500's comparable valuation up to more than 22. Both are well above long-term norms, leaving the overall market vulnerable to a setback.

This additional risk doesn't mean you should simply avoid growth stocks altogether, though. It just means you should make a point of acting on opportunities that aren't overexposed to this vulnerability. That, or at least taking on risk that makes sense (like one with an inordinate amount of upside potential).

A company called Coupang (NYSE: CPNG) fits the bill.

What's Coupang?

Never heard of it? It would be surprising if you had. The company's market cap is a relatively modest $60 billion, and it's only been around since 2010. While it's technically U.S.-based, its core market is South Korea.

But what is it? Its unofficial label as the Amazon of South Korea is a fitting one. It's not entirely accurate, however. Like Amazon, Coupang's core business is e-commerce fueled by subscriptions to a service akin to Amazon Prime, with two-thirds of Korean households are already subscribed. Unlike Amazon though, market-leading Coupang's distinguishing strength is the super-rapid delivery of a wide range of items, from restaurant orders to fresh food to non-perishables ordered online. The company also serves as a ticket-selling middleman to entertainment and events. Coupang even operates a streaming service and manages an online payment platform.

The diversity of all of its profit centers isn't the crux of the bullish argument. This company is a compelling one largely because it looks like what you'd expect to see when an organization first learns from other players in the same businesses, and then launches something newer and better.

For example, Coupang was built from the ground up to outright "wow" consumers with its well-oiled artificial intelligence (AI)-powered logistics offering capable of fulfilling online orders in a matter of hours. What it was delivering didn't really matter.

Whatever it is, Coupang turned last year's $30.3 billion worth of revenue into $154 million of net income. Analysts expect a top line of $34.8 this year, up nearly 15% year over year en route to $40.4 billion next year. Profits are apt to grow even faster now that the market-leading company has reached its tipping point.

Why it's a buy right now

Owning stocks of overseas companies isn't easy; it's difficult to get a feel for something you can't see, or something you don't hear much about.

Nevertheless, this ticker's worth a shot with at least a small portion of your growth portfolio, for a handful of reasons.

First, if you're looking for a way of sidestepping most of the tariff-driven drama between China and the United States, this one offers exactly that.

Trade ties between the U.S. and South Korea remain reasonably healthy, even if only because it makes strategic sense to remain on good terms with a partner that will help keep North Korea in check. And for what it's worth, although the country's economic growth is expected to slow to only 0.8% this year, research outfit KDI anticipates a rebound to a pace of 1.6% next year. A little improvement could go a long way to encourage more of the consumerism that Coupang facilitates.

And regardless of how its core market is faring, there's no denying that Coupang is just outpacing its rivals.

Much like North American consumers did in Amazon's early days, South Korean consumers are increasingly enjoying the convenience of online shopping. Mordor Intelligence predicts the country's e-commerce industry will grow at an average yearly pace of 20% all the way through 2030, in fact, fueled by the prevalence of smartphones.

CPNG Revenue (Quarterly) data by YCharts

Separately but simultaneously, research outfit PCMI expects South Korea's mobile payments market to grow just as quickly as online shopping will through 2030, when digital wallets should be the nation's most common means of making purchases at 48%.

Or, perhaps the biggest reason you might want to consider stepping into a stake in Coupang is far simpler. That is, the analysts following the company largely love it. Of the 18 analysts currently covering it, 14 of them rate the stock as a strong buy.

Just keep it in perspective

Now, don't bet the farm. As compelling as this name may be, this is hardly a foundational holding for any major amount of money, like a retirement nest egg. Those kinds of picks should always be stocks of stalwart companies you can keep tabs on -- names you know are going to be around for a long time, regardless of any geopolitical tensions.

Still, if you're looking for a way to spice up your overall performance by taking on a little off-the-radar risk, Coupang's a top prospect here.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.