We’re over three years removed from the start of the pandemic that shook markets and triggered a short but sharp bear market. While some areas of the market, like AI and crypto, went on absolute tears, many great companies saw their stocks languish. But now, in 2023, the clouds are parting. The economy seems to be on the mend, consumers are spending again, and inflation is finally cooling off. Many stocks remain well below their pre-pandemic highs, creating opportunities for investors who can identify the diamonds in the rough.

In my view, there are still plenty of strong, well-run businesses whose stocks are undervalued relative to their long-term growth prospects. Some are industry leaders who maintain their competitive advantages despite the challenging environment. Others operate in recovering sectors poised for multi-year expansions. And some simply fell under the radar amidst the broader market volatility.

The bottom line is that for stock pickers willing to dig beyond the AI hype, there remain overlooked stocks capable of doubling over the next few years. Let’s dive in!

PayPal (PYPL)

PayPal (NASDAQ:PYPL) is now trading in clear bargain territory, and it’s time to snap up this fintech stock. PYPL stock is languishing around $60 per share following an 81% decline from its peak. This decline was mainly driven by slowing user account growth as the pandemic-related boom fades away. However, as an investor, I still see tremendous upside potential here.

PayPal has been aggressively buying back shares, which I view as a huge positive. While user growth may be stagnating for now, I believe the company can pick back up again in the long run as PayPal doubles down on innovation. The company has been experimenting heavily with new features and updates to drive engagement. Even if user growth sputters and competitors start taking market share, PayPal’s 431 million active accounts globally are still an enormous base to drive revenue and profit growth for years to come.

Undoubtedly, the stock has its risks as the crowded fintech space heats up. But with PayPal aggressively cutting costs and showing discipline on expenses, I expect margins and earnings to continue expanding. The company is also flush with cash to fuel acquisitions or investments as needed. For investors with a 5-year time horizon, I see PayPal stock as a strong buy below $60. The negativity is overblown.

Snap (SNAP)

Snap (NYSE:SNAP) offers tremendous upside potential for patient investors. The stock plunged below $10 due to monetization struggles, but the company’s core platform metrics remain strong. Snap boasts over 397 million daily active users and engagement is growing, with time spent watching Spotlight content tripling year-over-year.

The issue is Snap’s average revenue per user (ARPU), which remains quite low compared to rivals like Meta Platforms (NASDAQ:META). This leaves massive room for Snap to grow monetization over time through advertising, subscriptions, and augmented reality. Management is aggressively optimizing its ad platform and expanding e-commerce tools to drive advertiser ROI. Early signs already point to strengthening ad bid density and returns.

There’s no doubt risks abound, as Snap burns cash and competition remains fierce. But with the stock sitting near all-time lows, this negativity appears to be fully priced in. Snap’s strong user base and engagement provide a solid foundation, and as the ad platform improves and new revenue streams like Snapchat+ scale up, Snap should narrow the monetization gap over the next five years. The stock could swell enormously on any signs of growth re-acceleration.

Enphase Energy (ENPH)

As a leader in the booming solar industry, Enphase Energy (NASDAQ:ENPH) offers substantial upside potential amid the global clean energy push. There are risks, of course, from potential solar incentive reductions and market saturation. But even with my conservative assumptions, I see sizable long-term growth tailwinds for Enphase.

Solar remains early in the adoption curve, and Enphase is winning business globally with its superior microinverter technology. The company’s gross margins are remarkably high (above 45%), supported by the company’s vertically integrated model. Analysts expect Enphase to grow revenue at a 30% compounded annual growth rate (CAGR) through 2025, while boosting operating margins.

With shares trading at nearly 26-times forward earnings, the stock certainly isn’t cheap. Execution risks lurk as competition intensifies. But between solar incentives, rising utility rates, and the EV charging boom, Enphase sits in a sweet spot. I expect strong growth and margin expansion to continue driving upside. The company produces ample cash flow to fund growth initiatives and buybacks too.

Luminar Technologies (LAZR)

Luminar Technologies (NASDAQ:LAZR) offers sizable upside potential if it executes properly as the top lidar play. Lidar technology is superior to radar and cameras for vehicle autonomy and safety. Luminar counts major automakers as partners, and boasts technological advantages like long range and high resolution over its peers.

No doubt, risks abound with the company’s widening losses and the need for heavy capex spending. Lidar costs have also been an adoption barrier. But Luminar is aggressively bringing down prices and scored key manufacturing deals to scale volume. With shares beaten down by over 80%, I believe the negativity around LAZR stock is overdone, given Luminar’s progress and lidar’s massive addressable market.

The next couple of years will be crucial as Luminar ramps production and gets lidar into consumer vehicles. If successful, the company could see explosive growth in the back half of the decade. Even modest penetration in the auto market can drive Luminar’s sales exponentially higher. I see the stock as a speculative buy for investors comfortable with higher risk.

Sea Limited (SE)

Sea Limited (NYSE:SE) has seen its stock price decline nearly 90% from its peak, including a 37% plunge this month after mixed quarterly results prompted a downgrade from JPMorgan (NYSE:JPM). However, with shares now trading below even the lowest price target on the Street, this is an opportune time to take a position in Sea Limited.

The company has experienced rapid expansion across emerging markets in Asia, leveraging its leadership in e-commerce and digital entertainment. While that growth has slowed recently amidst macroeconomic challenges, I believe Sea will return to a high rate of top-line growth as conditions improve. Looking ahead, analysts expect revenue to increase 11.8% year-over-year in 2024, building momentum from the 4.3% growth expected for the end of 2023. Sea’s gaming business is also poised for a rebound as the economy strengthens.

With the stock trading at just over 2-times estimated 2023 sales, Sea Limited appears significantly undervalued, especially given its long runway for expansion across Southeast Asia. The company still has net cash on its balance sheet, and its losses are narrowing. For risk-tolerant investors, shares of Sea Limited offer tremendous upside potential from current levels.

Unity Software (U)

Unity Software (NYSE:U) stock has seen some positive momentum in recent months, thanks to the broader recovery in high-growth tech names and excitement around AI. However, the rally has sputtered, and Unity is back below $35 per share. In my view, this presents an attractive entry point, given Unity’s entrenched position in the video game development market.

While the gaming sector has struggled recently, younger demographics are claiming a greater share of disposable income over time. This generational shift should provide a tailwind for gaming, virtual worlds, and interactive 3D content. Accordingly, Wall Street analysts expect Unity’s revenue to triple by the end of the decade, with its earnings per share expected too more than double from 64 cents in 2022 to $1.64 in 2026. Indeed, a doubling of Unity’s stock price within that timeframe seems reasonable.

Beyond gaming, Unity is expanding into enabling digital twins and 3D environments for businesses. This diversification leaves room for upside surprises. Given the immense potential of the metaverse, Unity Software offers an intriguing way to gain exposure.

SolarEdge (SEDG)

SolarEdge Technologies (NASDAQ:SEDG) stock has plunged 40% after missing Q2 revenue estimates by a slight 0.46%. However, with shares now trading at a forward price-earnings ratio of just 17.6-times (which drops below 10-times when factoring in 2026 expected earnings), this presents a compelling entry point.

As a leader in power optimizers for solar panels, SolarEdge has built an enviable competitive moat. It is expanding this moat through offerings like grid services and a new solar tracking system. While the recent slowdown in residential solar demand has impacted results, SolarEdge has multiple levers to reignite growth, whether through strategic M&A, share repurchases, or continued global expansion.

Given that solar power still accounts for only 4% of electricity generation worldwide, the company’s long-term growth runway remains intact. With best-in-class margins and solid cash flows, SolarEdge stock appears too cheap to ignore after its massive post-earnings plunge. This is an opportunity for investors to pick up shares at a substantial discount.

On the date of publication, Omor Ibne Ehsan 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.