Coupang (NYSE:CPNG), a leading South Korean e-commerce company, has developed attractive new services and  has decided to expand to multiple, new geographic markets. As a result,  I expect CPNG stock to meaningfully outperform the market over the longer term.

What’s more, Coupang’s decision to enter the third-party logistics market should be very positive for its shares, while the company’s valuation appears to have significant room to expand.

Impressive New Services and Important New Markets

Among the relatively unique services the company is offering are overnight and same-day deliveries,  deliveries without boxes (the company places 75% of its products “in a simple sleeve”),  and returns without packaging or mailing (customers can return products by simply placing them outside their front doors.) Additionally, Coupang reportedly fulfills all orders on the day after they are made.

Taken together, I believe that these services, which Coupang has worked hard to implement, give the company important competitive advantages.

With these competitive advantages, Coupang should be able to quickly gain market share in the countries that it’s reportedly looking to enter: Japan, Singapore, and Malaysia.  (In my previous column on CPNG stock, I had predicted that the e-commerce company would look to enter new markets).

These countries all have important, positive attributes for Coupang. Singapore is wealthy and has high population density, allowing products to be delivered very quickly. Neither of the e-commerce gorillas {Amazon (NASDAQ:AMZN) and Alibaba (NYSE:BABA)} has footholds there.

Japan has a large, wealthy population and Japan’s Softbank (OTC:SFTBY), a major investor in Coupang, should be able to help the South Korean company succeed there. Malaysia is home to nearly 32 million people and has a high population density, while neither Alibaba nor Amazon has commanding  market share there.

The Third-Party Logistics Business Is Likely to Be a Strong Catalyst

Given Coupang’s ability to deliver all of its packages by the next day, I’m sure that the company’s logistics operation is quite impressive.  Therefore, the South Korean government’s approval earlier this year of Coupang’s application to offer delivery services to other companies should ultimately meaningfully boost the e-commerce giant’s top and bottom lines. In the future, Coupang should be able to offer logistics services to other companies in countries besides South Korea.

Worth noting is that JD.com (NASDAQ:JD), which has become one of China’s most successful e-commerce companies, has also built up a very successful third-party logistics service. Moreover, JD stock has jumped over 150% in the  last two years. 

Profitability Will Come and the Big Money Is Bullish

JD.com,  which, like Coupang, is a rapidly growing e-0commerce company with a strong logistics business, reported earnings from continuing operations of $7.56 billion in 2020, versus losses of $1.19 billion and $407 million in 2015 and 2018, respectively.

As Coupang expands geographically grows its logistics business, and its costs as a percentage of its revenue drop, I expect it to follow a similar path.

Meanwhile, somewhat validating Coupang’s business and outlook, multiple huge investors hold large amounts of CPNG stock.  For example, as of March, Softbank had a 37% stake in the company, while the investment fund of well-known investor Stanley Druckenmiller recently bought 714,000 shares of Coupang.

Also adding new stakes in Coupang recently were the  Bill & Melinda Gates Foundation, and Saudi Capital. 

Valuation and the Bottom Line on CPNG Stock

Coupang has a market capitalization of $67.66 billion, versus $116 billion for JD, $592 billion for Alibaba, and $1.76 trillion for Amazon.

Given that disparity and Coupang’s multiple, strong positive catalysts, I believe that CPNG stock could easily double or triple over the next two to three years. Consequently, I recommend that longer-term growth investors buy the company’s shares at this point.

I had been cautious on CPNG stock in my previous column. But given the company’s apparent decision to actually enter new markets, including Japan, the strength of its logistics business, its special services, and the fact that it’s going to start providing logistics services to other companies. –all of which iIve just learned about — my view of the shares has become much more bullish.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on U.S. stocks for 14 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015.? Among his highly?successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.?