Whenever I find good growth stock ideas for long term investing, I always check on the social media interest. There are stories being widely discussed with multibagger targets. While it does not imply that these ideas will not work, I prefer to invest in potential multibagger growth stocks that are not in the limelight.

These stocks represent companies with strong fundamentals and a positive industry outlook. Further, these ideas have gone unnoticed or the markets are currently ignoring them. As a result, these growth stocks trade at attractive valuations.

These ideas can deliver 10x to 20x returns by the end of the decade. Of course, I would review annual business developments, but the key is to hold for an extended period. Let’s discuss the business factors that are likely to translate into sustained growth and cash flow upside for these businesses.

Leonardo DRS (DRS)

Leonardo DRS (NASDAQ:DRS) stock has moved higher by 50% in the last 12 months without much attention. The growth stock remains attractively valued at a forward price-earnings ratio of 26. With continued focus on the defense sector on the back of escalating geopolitical tensions, DRS stock is a potential multibagger.

As an overview, Leonardo DRS is a provider of defense electronic products and systems. As a critical defense technology supplier, Leonardo is well positioned to benefit. The company ended 2023 with an order backlog of $7.8 billion. On a year-on-year basis, the backlog increased by 82%. Considering the order intake, Leonardo is well positioned for accelerated growth in the coming years.

A key factor that’s likely to support backlog growth is innovation driven products. Leonardo was recently awarded for a “cooled infrared sensor that unlocks the ability for advanced military and scientific capabilities across multiple domains.”

MakeMyTrip (MMYT)

MakeMyTrip (NASDAQ:MMYT) stock has skyrocketed by 165% in the last 12 months. I would look at intermediate corrections for exposure to this under-the-radar growth stock. As an overview, MakeMyTrip is an online travel company with focus on the Indian markets. Further, the company has leadership position among Indian online travel company peers.

Estimates suggest that Indians could be the fourth-largest travel spenders globally by 2030. Total travel expenditure by the end of the decade is projected at $410 billion. Clearly, there is a big addressable market and the long-term uptrend for MMTY stock has just commenced. 

From a financial perspective, the company has made positive progress since the pandemic. From an operating loss of $18 million in financial year 2021, MakeMyTrip has reported operating profit of $91.8 million for the first nine months of FY24. With operating leverage, it’s likely that margin expansion will sustain.

It’s also worth noting that MakeMyTrip has grown through acquisitions. With a cash buffer of $608 million, the company has flexibility to pursue potential acquisitions to accelerate growth.

Miniso Group (MNSO)

Sentiments have been bearish for Chinese stocks. That’s possibly a key reason for investors overlooking Miniso Group (NYSE:MNSO) stock. The lifestyle retailer is however undervalued and with positive business metrics, MNSO stock upside is a matter of time. To put things into perspective, MNSO stock trades at a forward price-earnings ratio of 16.6. The stock also offers an attractive dividend yield of 1.99%.

For the December quarter, Miniso reported revenue growth of 54% on a year-on-year basis to $541 million. Besides stellar growth, Miniso also reported adjusted EBITDA margin of 25.9%, which was higher by 200 basis points on a year-on-year basis.

There were two factors that support growth. First, a dynamic product portfolio with a favourable product sales mix. Further, aggressive retail expansion globally. The company ended Q2 2024 with total stores of 6,413. On a year-on-year basis, the number of stores increased by 973.

In terms of guidance, Miniso expects to open 1,000 (mid-range) stores annually between 2024 and 2028. During the same period, the company expects revenue growth at a CAGR of over 20%. With robust estimates, MNSO stock is a steal at current levels.

Aker BP ASA (AKRBF)

With oil prices being depressed due to macroeconomic headwinds, Aker BP (OTCMKTS:AKRBF) stock has remained sideways. I believe that it’s a good accumulation opportunity and this under-the-radar oil & gas exploration company can be a massive value creator. Besides trading at a valuation gap, AKRBG stock also offers an attractive dividend yield of 8.32%.

As an overview, Aker BP is an oil & gas exploration with focus on the Norwegian Continental Shelf. As of 2023, the company reported 2P reserves of 1.72 billion barrels of oil equivalent. Through the years, Aker has grown through merger and acquisitions. For 2023, the company reported production of 457mboepd. With steady growth, Aker expects production of 525mboepd by 2028.

A big positive for Aker BP is low break-even assets. The entire portfolio break-even is estimated at $35 to $40 per barrel. This provides robust free cash flow visibility even if oil trades around $80 per barrel. Last year, Aker reported operating and free cash flow of $5.4 billion and $1.9 billion. With healthy cash flows and low leverage, there is ample flexibility for aggressive exploration activity and potential acquisitions.

Arm Holdings (ARM)

Arm Holdings (NASDAQ:ARM) is under-the-radar mainly due to the fact that the stock got listed in September 2023. For year-to-date, ARM stock is higher by 62% and corrections would be a good opportunity to accumulate.

As an overview, Arm Holdings develops and licences central processing unit products and related technologies. Recently, Evercore ISI opined that Arm Holdings has a key position across “3 tectonic shifts”’ in computing. These include “AI workloads in smartphones, in the data-center as CPUs move on from x86 infrastructure to Arm and in Internet of things devices.”

It’s worth noting that Arm has moved from general purpose CPUs to AI enabled CPUs for specific applications. This includes IoT, automobile, cloud, mobile and consumer electronic. For Q3 2024, Arm reported revenue growth of 14% on a year-on-year basis to $824 million. With free cash flow of $251 million for the quarter, Arm is positioned for annualized FCF of $1 billion. Also, as royalty revenue increases in the coming years, FCF will continue to swell.

Albemarle (ALB)

With the deep correction in lithium, Albemarle (NYSE:ALB) stock has plunged. The stock has subsequently been ignored by investors. However, for long term investors, I see this as a golden opportunity to accumulate.

Some analysts are expecting lithium shortage to come as early as 2025. Further, Boston Consulting Group estimates that the lithium supply gap will touch 1.1 million metric tons by 2035. It’s therefore likely that lithium will trend higher in the coming years. Albemarle, with strong fundamentals, is well positioned to grow.

For now, Albemarle is focused on scaling back investments and cutting cost. The company expects to unlock $750 million in cash flow through reduced capital expenditures, costs and working capital.

However, the company continues to guide for lithium sales volume growth at a CAGR of 20% through 2027. With a liquidity buffer of $1.8 billion and an investment grade credit rating, Albemarle is positioned for aggressive investments on lithium price recovery.

IAMGOLD (IAG)

Among penny stocks with multibagger potential, IAMGOLD (NYSE:IAG) looks attractive. Gold trades near $2,380 an ounce and with possibility of rate cuts in 2024, I expect further upside for the precious metal. Geopolitical tensions also support the bull thesis for gold.

IAMGOLD is therefore positioned to benefit as realized gold price inches higher. This will translate into EBITDA margin expansion and free cash flow upside. However, that’s not the only reason to be bullish on IAMGOLD.

The company has quality gold assets that provide visibility for sustained upside in production. Some of the key assets include Côté, Gosselin, Nelligan and Chibougamau district.

It’s worth noting that Côté has commenced production in March. The asset life extends through 2041 with current year production estimated at 220,000 to 290,000 ounces. This provides robust growth visibility. 

IAMGOLD ended 2023 with a liquidity buffer of $754.1 million. The existing liquidity coupled with healthy cash flow visibility will ensure that the company continues to invest aggressively.

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.