2 No-Brainer Hypergrowth Stocks to Buy During This Nasdaq Market Correction

Bear markets can happen quickly. One day, the stock market is trading at all-time highs, and the next thing you know, your portfolio is in a 20% drawdown. That seems to be what happened in the last few weeks with the Nasdaq-100 Index, which has sharply fallen into a 13.2% correction with many stocks down 20%, 30%, or more.

The volatility of modern markets means you need to be prepared in advance for stocks to buy when animal spirits turn depressive. Bear markets are the best time to buy hypergrowth stocks because they provide an opportunity to buy stocks typically valued at a premium valuation on the cheap.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Here are two cheap hypergrowth stocks to buy during this stock market correction.

1. Remitly: Market share taker in remittances

First up is Remitly (NASDAQ: RELY), a Nasdaq stock with a 27% drawdown. The company is disrupting the remittance market with its easy-to-use mobile application and lower fees than stodgy legacy players like Western Union.

Last quarter, Remitly's revenue grew 33% year over year to $352 million. This was driven by a 32% growth in active customers to 7.8 million and a 39% growth in send volume to $15.4 billion. While the company is not profitable, it does have great unit economics. Subtracting out its transaction expenses, Remitly had a gross margin of 66% last quarter. Revenue less transaction expenses grew 33% year over year.

It doesn't look like growth will slow anytime soon, either. Remitly only has around 3% market share in remittances and is rapidly growing in new country corridors around the world. Since 2019, its revenue outside of the United States and Canada has grown at a 100% year-over-year rate, reaching $297.1 million in 2024 and now making up 23.5% of total revenue.

Over the long term, I expect Remitly's strong unit economics to translate to fantastic bottom-line margins. That will not happen overnight with Remitly's high levels of marketing spend, but that shouldn't concern investors right now because of the strong returns the company is getting on all these expenses.

Today, Remitly has a market cap of $3.9 billion. It generated $1.26 billion in revenue in 2024. If that can grow to $2.5 billion by 2027 -- which looks conservative, given how fast the company is growing today -- and obtain a net margin of 20%, Remitly will generate $500 million in net income in 2027. That would give it Remitly stock a price-to-earnings ratio (P/E) below 8 based on the current market cap, making it a cheap buy-and-hold investment over the next decade.

GOOG PE Ratio data by YCharts

2. Coupang: An underrated technology platform in South Korea

Unless you live in South Korea, you have probably never interacted with Coupang (NYSE: CPNG) as a customer. However, for South Korean e-commerce shoppers, this is an invaluable platform similar to Amazon in North America. By building out its own warehouse and delivery network, Coupang has been able to offer rapid shipping speeds and low-cost shipping on millions of items, which has led it to gain market share of retail spending in South Korea.

In 2024, Coupang generated $30 billion in revenue, up 29% on a foreign currency-neutral basis. There is plenty of growth left within its core South Korean e-commerce offering, but it isn't resting on its laurels.

New initiatives include food delivery with Coupang Eats, international expansion into Taiwan, video streaming with Coupang Play, and a push into luxury/fashion shopping with an acquisition of Farfetch. South Korea is one of the top spending countries on luxury items, making the acquisition a perfect fit for Coupang.

If Coupang can keep up this impressive growth, which I think it will, the company will be generating $50 billion in annual revenue within the next few years. Even assuming a low profit margin of 10% for an e-commerce offering, the company will have the potential to generate $5 billion in annual net income. Today, Coupang has a market cap below $40 billion.

Similar to Remitly, Coupang is a cheap stock if you zoom out and have patience. Buy and hold both these stocks and watch the wealth accumulate over the next decade for your portfolio.

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*Stock Advisor returns as of March 14, 2025

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Brett Schafer has positions in Amazon, Coupang, and Remitly Global. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Coupang. The Motley Fool has a disclosure policy.