Equity markets have an ocean of listed stocks. In any market condition, there are compelling opportunities that can translate into robust returns in quick time. I see multiple undervalued stocks under $10 that could double within a year.

Further, I believe these stocks under $10 are worth holding for the next few years for multibagger returns. I would bet on 3x to 5x returns on these stocks in the next five years.

An important point to note is that stocks under $10 do not necessarily represent speculative or fundamentally weak names. My focus is on stocks under $10 that represent companies with strong fundamentals and a positive long-term business outlook. I must add that industry tailwinds will likely be positive and support the upside thesis.

Let’s discuss the reasons to be bullish on these undervalued stocks under $10.

Panasonic Holdings (PCRFY)

Among the blue-chip stocks under $10, Panasonic Holdings (OTCMKTS:PCRFY) stock is massively undervalued. PCRFY stock trades at a forward price-earnings ratio of 9 and offers an attractive dividend yield of 2.42%. I would bet on the stock doubling within the next 24 months.

It’s worth noting that electric vehicle stocks have been depressed due to intense competition and macroeconomic headwinds. In my view, near-term challenges provide a good entry opportunity. Panasonic, as an innovator and manufacturer of EV batteries, is a potential long-term value creator.

It’s also important to mention that the company has chalked out ambitious growth plans. Panasonic expects to quadruple its global production capacity of automotive batteries to 200 GWh by 2031. That will likely be associated with EBITDA margin expansion. I, therefore, expect healthy revenue growth and cash flow upside.

Besides capacity expansion, Panasonic also expects to boost the energy density of EV batteries. The target is to increase volumetric energy density to 1,000Wh/L by 2031. Tats would be 25% higher than current levels. Improved productivity and efficiency of batteries will ensure Panasonic maintains or increases its market share.

Kinross Gold (KGC)

Gold has been surging higher and $2,200 an ounce is in sight. I remain bullish on the precious metal with potential rate cuts likely in the second half of 2024. Gold miners are positioned to benefit in the form of higher realized prices. Kinross Gold (NYSE:KGC) is among the undervalued stocks under $10 to buy for robust returns.

The first reason to like Kinross is its strong balance sheet and high financial flexibility. As of Q4 2023, the company reported a liquidity buffer of $1.9 billion. Further, last year, Kinross reported an operating cash flow of $1.6 billion. With gold trending higher, OCF will likely be more than $2 billion.

Therefore, with high financial flexibility, Kinross is positioned to make aggressive exploration investments. At the same time, inorganic growth might be on the cards. Currently, Kinross has stable gold production visibility through 2026. Potential acquisitions can boost the growth outlook. I must add that healthy dividend growth is likely this year and is another catalyst for KGC stock to trend higher.

Lithium Americas (LAC)

The big crash in lithium prices has ensured that investors stay away from lithium stocks. However, there are compelling opportunities that need to be grabbed with both hands. Lithium Americas (NYSE:LAC) is one such opportunity. It’s worth noting that LAC stock has silently trended higher by 24% in the last month. However, the stock continues to trade at a valuation gap.

Lithium Americas is focused on the Thacker Pass project in the United States. The asset is believed to have the largest known measured and indicated lithium resource in the country. With an after-tax net present value of $5.7 billion and an average annual EBITDA potential of $1.1 billion, the asset is a cash flow machine.

It’s also important to note that the construction of the project is well-funded. General Motors (NYSE:GM) will be investing $650 million in two tranches. Further, GM has an offtake agreement from the first phase for 10 years. It’s, therefore, just a matter of time before LAC stock skyrockets.

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.