Investors looking for stocks with millionaire-maker potential must go overweight on growth and penny stocks. When it comes to penny ideas, the thing that comes to mind is speculation or a meme frenzy. Without doubt, there are significant number of speculative penny stocks. During euphoria, these stocks can rally by 300% or 500%. However, when sanity returns, these ideas plunge.

On the other hand, there are penny stocks with good fundamentals and an attractive business model. These stocks can surge in a broader euphoria. However, the correction is unlikely to be deep if the business fundamentals remain strong.

Today, we’re looking at three high-risk penny stocks that represent companies with an attractive business outlook. These stocks have the potential to deliver 20-bagger returns in the next three to four years.

Let’s discuss the fundamental factors to be bullish on these growth ideas.

Cronos Group (CRON)

My view is that cannabis stocks are setting up for a big rally. While this can accompany the meme frenzy, the bullish outlook for the sector is a fundamental factor that will drive stock upside. Cronos Group (NASDAQ:CRON) is my favorite among cannabis names and the stock is likely to be a 20-bagger. Of course, the key is to hold with patience for the next 36 to 48 months.

An important point to note is that regulations will likely be increasingly friendly for the cannabis sector. Germany recently legalized cannabis and U.S. is looking at reclassification of cannabis as a Schedule III drug. With the possibility of regulatory tailwinds, cannabis stocks are likely to skyrocket.

Specific to Cronos, a strong balance sheet and cash buffer of $855 million are big positives. Cronos has high financial flexibility to pursue organic and acquisition-driven growth. The cannabis player has entered new markets of Germany, Australia, and the U.K. in the last few quarters. Further geographic expansion seems to be on the cards and will support revenue acceleration.

Entera Bio (ENTX)

Entera Bio (NASDAQ:ENTX) is a clinical-stage biotech company with immense potential. It is working towards the commercialization of orally delivered peptide and protein therapeutics for unmet medical needs. In the last 12 months, ENTX stock surged by 150%. However, a market valuation of $78 million looks attractive.

In terms of the product pipeline, EB613 is the most advanced-stage candidate and will enter Phase 3 trials. The product is being positioned as the first oral mini-tablet for post-menopausal osteoporosis.

Globally, this medical condition afflicts more than 200 million women. Therefore, there is a big addressable market, and the candidate is a potential blockbuster. No new osteoporosis therapy has been approved since 2019. Clearly, the opportunity is big, and there is a strong case for buying and holding ENTX stock.

Additionally, EB612, for hypoparathyroidism is currently in the Phase 1 testing. The pipeline is deep with two more molecular entities in the pre-clinical stage.

Blade Air Mobility (BLDE)

Blade Air Mobility (NASDAQ:BLDE) is another emerging company with an interesting business model and robust growth outlook. Blade provides air transportation alternatives to congested ground routes in the U.S. The business model is asset-light, and as revenue grows, operating leverage will translate into healthy margins.

Blade Air operates through two key business segments.

The medical segment is involved in the air transport of human organs in the U.S. for transplant. In the last 12 months, the segment reported revenue growth of 58% on a year-on-year basis to $136 million. The segment adjusted EBITDA was $13.3 million.

The passenger segment undertakes flights in New York, Vancouver and southern Europe. For the last 12 months, revenue from the segment was $96 million (higher by 21% on a year-on-year basis) with an adjusted EBITDA loss of $4.6 million.

Clearly, the medical segment is the key revenue growth and EBITDA margin upside driver. However, with operating leverage, it’s likely that the passenger segment will contribute to the EBITDA in the coming quarters. Overall, the outlook is bullish for the business with low competition and BLDE stock is likely to surge higher.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

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.