My 2 Favorite Stocks That Investors Will Be Piling Into Next Year

In the ever-evolving investment landscape, it's crucial to stay ahead of the curve and identify promising stocks that have the potential to outperform the market. As we approach the new year, two under-the-radar stocks have caught my attention: Coupang (CPNG) and Ally Financial (ALLY). Both companies exhibit strong fundamentals and growth prospects that make them attractive investments for the coming year.
Coupang: The E-commerce Giant on the Rise Coupang, the largest e-commerce company in South Korea, has been making waves with its impressive growth and expansion. With close to half of South Korea's population using its platform, Coupang is expanding internationally, with Taiwan being its latest market. The company's Developing Offerings segment, which includes Coupang Eats and a fintech subsidiary, grew an astounding 347% year-over-year in the last quarter. Despite these investments, Coupang generates positive net income, indicating a strong financial foundation for future growth.

Coupang's growth prospects are supported by the increasing demand for e-commerce services. South Korea's e-commerce market is expected to grow at a CAGR of 11.3% from 2022 to 2028, further boosting Coupang's potential. With a market cap of $48.3 billion and a P/E ratio of 25.5, Coupang appears undervalued, given its growth prospects and market position.
Ally Financial: The Online-Only Bank with a Bright Future Ally Financial, a leading online-only bank, has seen remarkable growth in its depositor base, with over 3.26 million depositors by the end of 2023. The company's high interest rates on deposits have proven to be a powerful attractor, leading to steady deposit growth. Ally's ability to lend more money at higher interest rates, thanks to its deposit base, has driven its profitability. Despite recent loan delinquencies, Ally remains profitable, generating $884 million in net income over the past 12 months, and its dividend yields a healthy 3.41%.

Ally Financial's growth prospects align with the shift towards digital banking. U.S. digital banking users are expected to reach 111 million by 2025, up from 88 million in 2020. With a P/E ratio of 14.3, Ally appears undervalued, given its strong fundamentals and growth potential.
In conclusion, Coupang and Ally Financial are two under-the-radar stocks with compelling growth prospects that make them attractive investments for the coming year. Their growth rates significantly outpace the S&P 500's historical average annual return of around 10%, and their valuations suggest they may be undervalued. As investors look for promising stocks to pile into next year, Coupang and Ally Financial should be on their radar.