If you’re chasing outsized gains by searching for stocks to turn $1,000 into $1 million, it may be a good time to look at stocks trading at bargain-basement levels. These beaten-down companies could deliver significant returns once they finally recover. I’ve been watching many businesses where the fundamentals are improving, yet Wall Street has failed to reward them. However, analysts see major growth potential in these stocks, and with interest rate cuts potentially on the way, we could see an impressive performance if the overall market sentiment improves and the environment becomes more conducive to growth.

In my view, these stocks have the potential to be multibaggers from their current levels, delivering exponential returns over time. But make no mistake – chasing such oversized gains means accepting considerable risk and likely some losses in the near term. However, if you’re willing to stomach some volatility, the eventual payoff could be enormous.

With the proper temperament and time horizon, a small investment today could make you a millionaire. But you’ll need patience and strong conviction in the face of short-term paper losses.

With the risks and rewards in mind, let’s dive into the seven specific stocks that can help turn $1,000 into $1 million.

Luminar Technologies (LAZR)

Luminar Technologies (NASDAQ:LAZR) has been a loser among growth stocks for a long time. However, I believe the fault lies more with the broader market environment rather than the company itself. The rate hikes we’ve seen over the past year have caused EV sales to slow down substantially, and companies like Luminar that rely heavily on the EV industry as a major customer have struggled amidst this economic environment. As a lidar sensor supplier to automakers, Luminar has failed to keep up the pace of revenue growth that many investors expected. Naturally, the stock price is down nearly 95% as financial results have lagged.

However, I believe LAZR may be at an inflection point very soon. The stock is trading below $2 per share as I write this, and I expect its financial performance to recover as rate cuts take effect and EV sales volumes pick back up. The broader robotics industry is also spurring much demand for lidar technology. The EV sector currently does not utilize much lidar due to the expense compared to radar and cameras. However, lidar is rapidly getting cheaper even as it remains far more advanced than those alternatives for enabling autonomous driving capabilities and advanced robotics applications. Luminar generated $70 million in revenue in 2023. However, the total lidar market is expected to reach $13.74 billion by 2033.

Revenue is projected to grow at triple-digit rates annually, potentially reaching $4.2 billion by 2030. Profits are also expected by 2027, which would then likely grow exponentially. The stock trades around four times 2027 estimated earnings, so I see it as one of the stocks that can help turn $1,000 into $1 million.

Snail (SNAL)

Snail (NASDAQ:SNAL) is a leading global independent developer and interactive digital entertainment content and services publisher. Essentially, they’re in the video game creation and animation business. These two sectors have not been the best places to invest over the past few years, as many gaming companies have been loss-making. At the same time, animation studios have also faced slowing growth combined with thin or negative profit margins.

Accordingly, Snail saw revenue of just $9 million in Q3 2023, with dismal net margins of -49%. However, I believe a rapid bounce-back could be in the cards. Analysts expect Snail to return to profitability as soon as 2024, with the forward P/E ratio at just 3x 2024 earnings estimates. Moreover, EPS is projected to triple in 2025 if management executes properly. That seems ambitious, but even if Snail only delivers half of the projected metrics, it could still generate multibagger returns from today’s levels. Total revenue is also expected to reach nearly $100 million by 2024. Paying just around $1 per share right now looks like a bargain if Snail’s growth story plays out as hoped over the next few years. It is definitely one of the stocks that can help turn $1,000 to $1 million.

Fuel Tech (FTEK)

Fuel Tech (NASDAQ:FTEK) is engaged in emissions control solutions for utility and industrial applications. I wouldn’t bundle Fuel Tech in with money-losing renewable energy companies, as many investors seem prone to do. Emissions control is a must for most industrial firms due to increasingly stringent environmental regulations. I believe Fuel Tech could become one of the biggest beneficiaries of onshoring trends and rapid expansion in U.S. manufacturing and industry.

Profits remain near breakeven currently. However, the market often rewards execution over accounting results alone. Analyst estimates foresee accelerating double-digit annual revenue growth, with minimal ongoing losses that pose little threat to Fuel Tech’s robust balance sheet. The company has $28.3 million in cash and negligible debt.

Consensus EPS estimates indicate that while the company may see a minor loss of 3 cents in 2024, it is expected to break even in 2025 and then consistently grow earnings per share, potentially reaching 68 cents by 2033. You’re paying just seven times the estimated 2028 earnings and only two times the estimated 2032 earnings at the current share price.

Similarly, consensus revenue estimates show a steady, robust growth trajectory. Fuel Tech’s revenue is projected to grow from $28 million in 2024 to $121 million by 2033. I believe multibagger returns could be in store over the long run if execution meets projections.

Lilium (LILM)

Lilium (NASDAQ:LILM) has also traded sideways in the $1-2 range for quite some time now. It is still up 129% from its April 2023 trough, but in my view, the stock can rise much further as its financial performance improves. Vertical take-off and landing (VTOL) aviation companies are seeing a surge of interest lately.

Lilium isn’t burning through cash at the same alarming rate as some more established flying car firms. Thus, the future is looking quite bright for Lilium, and its stock could kickstart a major breakout to the upside if the company executes as expected.

The EPS projections suggest Lilium will continue experiencing losses until 2027, with the largest deficit of -$0.56 expected in 2025. However, the company is forecast to turn profitable in 2028, with EPS potentially reaching 36 cents and growing to nearly $1 by 2029.

Lilium is projected to generate its first revenue of $50 million in 2025. From there, revenue could skyrocket to $527 million in 2026. This torrid pace continues, with estimates surpassing $5 billion in revenue by 2032. The high year-over-year growth rates, especially in the early years, indicate Lilium is well-positioned to rapidly gain market share. I’m very bullish on the long-term outlook.

Anterix (ATEX)

Anterix (NASDAQ:ATEX) is one of my highest-conviction picks right now after the company delivered blowout fiscal Q3 2023 results. It posted 2 cents in EPS, trouncing estimates by 64 cents. Revenue also impressed at $1.3 million, up 120% year-over-year and $245,000 above expectations. It’s still a tiny company, but I see massive upside potential.

Anterix focuses on commercializing its spectrum assets to enable utility and critical infrastructure clients to deploy private LTE broadband networks. It holds a licensed 900 MHz spectrum throughout the entire United States. While small today, Anterix has substantial room for growth and boasts a rock-solid balance sheet with $62 million in cash against just $5.6 million in debt.

Consensus estimates point to revenue potentially reaching $43 million by 2026. If Anterix keeps surprising with its earnings reports, multibagger returns could be in store.

Sono-Tek Corp (SOTK)

Sono-Tek (NASDAQ:SOTK) is a leading developer and manufacturer of ultrasonic coating systems. These systems apply thin film coatings with precision to protect, strengthen, or smooth surfaces on components and parts. While the stock doesn’t have quite as much upside potential as some other picks on this list, I still see multibagger potential for SOTK in the long run.

The stock has been relatively flat over the past year, but I believe it could reach $10 or more within the next 12-24 months. Two Wall Street analysts share my optimistic view, rating SOTK a “Buy” with price targets around that level.

Prairie Operating (PPR)

Prairie Operating (NASDAQ:PROP) is an independent E&P company focused on oil, natural gas, and NGL development and production in the United States. Previously, Prairie also engaged in crypto mining, but it has since sold that business segment to focus entirely on energy exploration.

I believe oil exploration stocks could get a boost due to the upcoming 2024 elections. Biden and Trump appear headed for a rematch, and polls suggest Trump may fare better this time, thanks to improved numbers in several key states. Boosting domestic oil drilling is one of his signature policy promises, which could catalyze companies like Prairie if he regains the presidency.

Prairie has secured a 45,000-acre position in the prolific Denver-Julesburg Basin, estimated to hold over 5 billion barrels of oil equivalent in reserves. This prime real estate sits near several multibillion-dollar oil giants. Insider ownership of Prairie is also strong. The company can drill up to 60 new wells in a year, so if it strikes big, your portfolio could also hit the jackpot. However, the risk here is more elevated than the other stocks discussed.

On the date of publication, Omor Ibne Ehsan 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.