The recent market correction is a reminder to investors that it’s important to remain grounded even during bull markets. By this, I imply having a balanced portfolio and staying away from overvalued stocks. At the same time, good opportunities among high-beta growth stocks should not be ignored.

The markets face macroeconomic and geopolitical headwinds. However, policymakers are likely to act, and I expect multiple rate cuts by the fed in the next six to 12 months. This should be a respite for equities, so don’t be surprised if markets make new all-time highs.

Yet, my focus is beyond the current developments. Amidst volatility, it’s a good time to buy growth stocks that can be massive value creators in the long term. The key is to hold with patience and focus on business fundamentals, not on the price-action.

Let’s discuss the fundamental factors to be bullish on these seven growth stocks to buy.

DraftKings (DKNG)

Toward late March, DraftKings (NASDAQ:DKNG) stock had touched highs of $50. Now, after a deep correction from those levels, DKNG stock trades at $30, a good buying opportunity for the long term.

With fears of recession, iGaming and online sports betting (OSB) industries might be heading for a slowdown. However, the addressable market is significant for the coming years, and I expect renewed growth once macroeconomic headwinds wane.

To put things into perspective, the OSB and iGaming market is expected to touch $30 billion by 2028. And this is only for existing states in which DraftKings operates. As more states legalize gaming, the addressable market will swell. This positions the company for sustained growth.

Notably, significant EBITDA margin expansion is in the cards. For 2024, DraftKings expects adjusted EBITDA of $380 million. For the next year, EBITDA is expected at $950 million. As cash flows increase, expect headroom for aggressive growth beyond the U.S.

Tempus AI (TEM)

Anything related to artificial intelligence (AI) grabs investor attention these days. However, one needs to be extremely careful while selecting technology stocks amidst the hype.

Tempus AI (NASDAQ:TEM) is an attractive company in the field of healthcare technology. As the company widens its genomics portfolio, I am bullish on healthy growth. Besides genomics, Tempus AI has the one of the world’s largest libraries of clinical and molecular data. This is another segment for growth in the coming years.

For Q2 of fiscal year 2024, Tempus AI reported revenue growth of 25% year-over-year to $166 million. Importantly, data licensing revenue increased by 40% YOY. Further, the company achieved positive adjusted EBITDA of $12.7 million quarter-over-quarter (QOQ).

With significant investment in research & development, Tempus AI is positioned to accelerate growth. In June, the company received U.S. Food and Drug Administration (FDA) approval for its “Tempus ECG-AF device that uses AI to help identify patients who may be at increased risk of atrial fibrillation.”

Li Auto (LI)

In general, electric vehicle (EV) companies have faced macroeconomic headwinds coupled with margin pressure on intense competition. Further, Chinese EV companies have been additionally impacted due to tariffs from U.S. and Europe. So, this is possibly the best time to buy deeply undervalued EV stocks. Li Auto (NASDAQ:LI) looks interesting at a forward P/E of 17.1.

In an era of intense competition, Li Auto maintains focus on operating efficiency and value to consumers. For Q1 FY24, LI reported healthy vehicle margin of 19.3%. Further, the company ended the quarter with a cash buffer of $13.7 billion.

The advantage with Li Auto is an exclusive focus on China. Currently, the company is not impacted by tariffs. Further, cost remains under control even as Li Auto pursues aggressive retail expansion. At the same time, ample headroom for investment in innovation exists. The company is expected to launch level 3 self-driving technology next year.

EHang Holdings (EH)

EHang Holdings (NASDAQ:EH) stock has disappointed in the last 12 months with a correction of 40%. However, this is a prime buying opportunity, with EH being among the early movers in the flying car industry. According to estimates, the electric vehicle take-off and landing (eVTOL) industry is expected to be worth $1 trillion by 2040. If the execution is right, EHang Holdings is positioned for massive growth and value creation.

In terms of growth triggers, there are two important points to note. First, after necessary approvals from the Civil Aviation Administration of China (CAAC), the company is commercializing eVTOL operations in the country. Also, the CAAC has given EHang Holdings the mass production certificate for its EH216-S aircraft. This positions the flying car company for significantly scaling-up operations.

Further, EH is looking at aggressive global expansion. The eVTOL company has international partnerships and demo flights in Saudi Arabia, Japan, UAE, Spain and Costa Rica. Recently, the company announced a partnership with KC Smart Mobility for sale and operations in Hong Kong and Macau. Therefore, the next few years are likely to be characterized by stellar growth, so expect EH stock to trend higher.

First Solar (FSLR)

The renewable energy sector has ample headroom for growth even beyond the current decade. From a per unit cost perspective, solar energy is the most attractive. It’s fair to expect wealth creators from this business. First Solar (NASDAQ:FSLR) is a potential multibagger and looks undervalued at a forward P/E of 15.5.

Notably, as of Q2 FY24, First Solar reported a bookings backlog of 75.9GW that extends through 2030. Further, the solar energy company has booking opportunities of 80.6GW. The backlog and potential pipeline provide clear revenue and cash flow visibility.

With an increase in backlog, First Solar has been pursuing aggressive capacity expansion. Currently, the operational capacity in the U.S. is 7.1GW. The company has plans to double capacity to 14.1GW by the second half of 2025. Additionally, international capacity is expected at 11GW by 2026. Expansion in capacity provides revenue growth visibility.

Ibotta (IBTA)

Ibotta (NYSE:IBTA) stock has been in a downtrend since the initial public offering in April. I believe that this under-the-radar growth stock is worth accumulating at current levels of $55.76. The stock trades at a forward P/E of 19.3 and looks undervalued considering the growth potential.

As an overview, Ibotta operates the “Ibotta Performance Network” that allows consumer packaged goods brands to deliver digital promotions to consumers. The company has a total addressable market of $200 billion, which provides ample headroom for growth.

For 2023, Ibotta reported revenue growth of 52% YOY to $320 million. Further, for Q1 2024, Ibotta reported revenue growth of 43% to $82.3 million. It’s likely that the robust growth trajectory will sustain, coupled with healthy EBITDA margin.

Currently, the company has an annual operating cash flow visibility in the range of $80 to $100 million. Considering the addressable market and growth trajectory, the business is likely to be a cash flow machine in the next few years.

Cronos (CRON)

Let’s end the discussion with a cannabis stock that’s trading under $5, but has strong fundamentals and ample headroom for growth. Cronos (NASDAQ:CRON) stock has trended higher by 23% in the last 12 months and trades at a market valuation of $873 million.

In my view, Cronos is significantly undervalued. My point is underscored by the fact that the company ended Q1 FY24 with a cash buffer of $855 million. Therefore, the current market valuation is almost equal to the balance sheet cash.

From a growth perspective, Cronos is going aggressive on geographic expansion. In the beginning of 2023, the cannabis company had presence in Canada and Israel. However, in the last few quarters, Cronos has entered new markets of Australia, Germany and the U.K. This is likely to ensure growth acceleration.

With the possibility of cannabis being reclassified as a Schedule III drug in the U.S., I expect Cronos to pursue organic- or acquisition-driven growth. Overall, with a widely addressable recreational and medicinal cannabis market, Cronos is positioned to create value.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.