It’s common to find healthy business model companies that are addressing large markets but also struggling with cash burn. Keeping a close watch on these firms is prudent, looking for fundamental improvements in cost cutting, changes in product-mix, and operating leverage. Stocks with enhanced fundamentals can deliver multibagger returns in quick time.

For example, Tesla (NASDAQ:TSLA) transitioned from a phase of cash burn to become one of the biggest value creators in recent times.

Certain stocks have experienced a turnaround or are likely to deliver healthy earnings in the coming quarters. While these stocks have trended higher year to date (YTD), more runway is ahead.

Specifically, these stocks with improving fundamentals could possibly double from current levels by the end of 2024. However, based on business developments, these growth stocks are worth holding for the long term. Let’s explore three such companies.

DraftKings (DKNG)

DraftKings (NASDAQ:DKNG) stock has been surging higher with returns of 155% in the last 12 months. However, as the company approaches profitability, the rally from deeply oversold levels is likely to sustain. Notably, DKNG stock was trading above $70 in March 2021.

Financially, the following point underscores my bullish view on DraftKings. For the year, DraftKings has guided for revenue of $3.7 billion and an adjusted EBITDA loss of $105 million. However, for the next year, the company expects robust revenue growth to $4.7 billion. More important is the guidance for positive adjusted EBITDA of $400 million.

With a widely addressable U.S. market for online sports betting and iGaming, revenue growth will remain robust. Additionally, EBITDA margin expansion will sustain in the coming years on the back of operating leverage. DraftKings expects to deliver positive free cash flows in 2024, boosting financial flexibility to make aggressive growth investments.

Miniso Group (MNSO)

Miniso (NYSE:MNSO) has skyrocketed in the last 12 months. The rally has been on the back of improving store metrics post pandemic. With aggressive expansion of lifestyle stores globally, views are bullish on further improvement in fundamentals for Miniso.

MNSO has initiated dividends this year and announced a share repurchase program. That could mena more value creation in the coming years, considering the financial progress. Specifically, Miniso reported revenue growth of 40.3% on a year on year (YOY) basis for Q4 2023. Also, it reported EBITDA margin of 26.3%, which was higher by 820 basis points.

During the last financial year, Miniso opened 592 new stores, with 214 in overseas markets. With global expansion and healthy revenue growth, outlook looks bright. Additionally, the franchise-owned model ensures that the business remains asset light.

Tilray (TLRY)

Tilray (NASDAQ:TLRY) looks attractive with improving fundamentals.

First, the stock has declined by 57% in the last 12 months, appearing deeply oversold at current levels of $1.67. Next, Tilray’s focus remains on the cannabis business and considering a scenario of federal level legalization, the stock can be a multibagger in a matter of weeks.

In addition, Tilray has made few acquisitions this year and has diversified in the beer and beverages industry. The company is the fifth largest U.S. craft brewer. This diversification is likely to help boost growth at a time when cannabis faces regulatory headwinds.

From a fundamental perspective, Tilray reported a strong liquidity buffer of $466 million as of Q1 2024. Further, it expects to generate positive adjusted free cash flow for financial year 2024. At the same time, TLRY’s international cannabis revenue growth was 37% for Q1 2024 YOY, providing it a bright outlook.

On the date of publication, Faisal Humayun did not hold (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.