If we look at high-quality growth stocks, the revenue and EBITDA upside is not just for a year or two. Companies continue to grow at a CAGR of 20% to 30% in the long term. Of course, industry factors must be supportive and coupled with good execution. Identifying these long-term growth stocks can translate into massive wealth creation.

This column focuses on growth stocks that represent companies with strong fundamentals and an attractive business. A few of the ideas discussed have been depressed and undervalued due to temporary headwinds. However, there is little doubt about the long-term growth potential.

I would therefore consider exposure to these growth stocks for multibagger returns. Over a horizon of five years, these ideas are likely to witness multi-fold growth in revenue and cash flows. Let’s discuss the business and financial factors that support the bullish thesis.

Miniso Group (MNSO)

Miniso Group (NYSE:MNSO) seems to be trading at a deep valuation gap considering a forward P/E of 15.9x. Revenue and earnings growth for the lifestyle retailer is likely to remain robust and I expect a strong reversal rally. It’s worth adding here that MNSO stock offers an attractive dividend yield of 2%.

An important point to note is that Miniso has been growing at a stellar pace even amidst macroeconomic headwinds. With rate cuts likely globally in the coming quarters, there is a strong case for growth acceleration. For Q1 2024, the lifestyle retailer reported revenue growth of 26% on a year-on-year basis to $515.7 million. Further, adjusted EBITDA margin swelled by 200 basis points to 25.9%.

Miniso is also planning to pursue aggressive store expansion. Between 2024 and 2028, the company plans to open 900 to 1,100 new stores globally. The target is to deliver revenue growth at a CAGR of more than 20%. With operating leverage, margin expansion will likely continue. Miniso therefore looks attractive on all fronts and the stock is a likely value creator.

Li Auto (LI)

If an investor is bullish on the long-term outlook for electric vehicles, the best time to buy EV stocks is now. Sentiments are over bearish and some of the best EV stocks trade at undervalued levels.

Once sentiments reverse, the upside in quality names is likely to be steep. Li Auto (NASDAQ:LI) is among the undervalued EV stocks to buy with millionaire-maker potential. LI stock trades at a forward P/E of 16.2 after a deep correction of 50% for year-to-date.

Moderation of growth is one reason for the steep correction. In March, Li announced that the company would focus on “creating value for users and driving operating efficiency” rather than emphasizing sales volume and competition. While this has caused pain, it’s the right strategy for the long term.

LI stock has also been impacted due to tariffs by the European Union on Chinese cars. It’s however worth noting that Li Auto is focused exclusively on China. Further, the Middle East is the likely market for expansion. Overall, with a strong cash buffer, healthy vehicle margin, and focus on technology, LI stock is a potential multi-bagger.

DraftKings (DKNG)

DraftKings (NASDAQ:DKNG) stock has witnessed a healthy rally of 50% in the last 12 months. This has been on the back of margin expansion coupled with a presence in a big addressable market. For the same reasons, I expect DKNG stock to remain in an uptrend.

As an overview, DraftKings is a provider of online sports betting (OSB) and iGaming in the United States. Currently, the market (existing states) for OSB and iGaming is $20 billion. It’s expected that the market size will swell to $30 billion by 2028. As more states legalize online gaming, the addressable market will continue to swell. I must add that Europe is another big market and DraftKings is likely to pursue expansion outside the U.S. in the coming years.

A big change for DraftKings in the last 12 months has been a move toward profitability. For the current year, the gaming company has provided an adjusted EBITDA guidance of $500 million. The target is to achieve EBITDA of $1.4 billion by 2026 and $2.1 billion by 2028. EBITDA can be potentially higher if the company enters new states in the U.S. DraftKings therefore has the potential to be a cash flow machine.

Cronos (CRON)

For years, there have been expectations related to the cannabis industry growing at a stellar pace. However, the key headwind to growth has been tight regulations. There seems to be positivity on that front and I am bullish on high-quality cannabis stocks delivering multi-fold returns.

Cronos (NASDAQ:CRON) is among the best names to consider in the industry. It’s worth noting that amidst tight regulations, Cronos had remained conservative in terms of expansion. This has translated into a strong cash buffer of $855 million.

With regulatory headwinds waning, the company seems to be preparing for aggressive investments. In the last few quarters, Cronos has entered new geographies of Germany, Australia, and the United Kingdom. Considering the financial flexibility, it’s likely that the cannabis company will continue to enter new regions.

Recently, Cronos announced that it will provide $51 million in secured non-revolving credit to GrowCo (resulting in 50% ownership) to fund facility expansion. The objective is to capitalize on the global market demand for high-quality cannabis flowers. These initiatives will support revenue growth acceleration and I expect CRON stock to surge higher.

PACS Group (PACS)

PACS Group (NYSE:PACS) had launched an IPO at $21. The stock has gradually trended higher to $28.6 and remains attractive at a forward P/E of 20x. As an overview, PACS is a provider of skilled nursing and assisted living facilities in the United States. Currently, the company has 218 facilities in nine states.

The first point to note is that PACS Group has ample headroom for facility expansion in the U.S. Aggressive acquisition of new facilities is likely in the coming years, which will support revenue growth. Further, adjusted EBITDA increased by 34% in Q1 2024 on a year-on-year basis. I expect sustained upside in EBITDA and potential margin expansion as new facilities mature.

In terms of competitive advantage, the company’s skilled nursing facility has an average cost of care per day of $550. In comparison, hospitals and inpatient rehabilitation facilities have an average cost of care per day of $2,914 and $1,850 respectively. It’s the cost factor that’s likely to drive growth and healthy utilization of facilities. With the stock still under the radar, it’s a good time to consider exposure.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) stock has witnessed a sharp rally of 50% year-to-date. This has however come after an extended period of price and time correction. FSLR stock therefore remains attractively valued at a forward P/E of 19.2x.

As of Q1 2024, First Solar reported a total bookings backlog of 78.3 GW. The backlog extends through 2030 and provides the renewable energy company with clear revenue visibility. Further, First Solar has a total bookings opportunity of 72.8GW. Even if 50% of the potential opportunity turns into a backlog, the growth outlook is bright.

As the order backlog swells, the company is also boosting its manufacturing capacity. By the end of 2026, the solar player expects to have 4GW of U.S. solar capacity and 11GW internationally. This will translate into healthy revenue growth as production increases on a year-on-year basis. Therefore, with industry tailwinds and a robust backlog, First Solar is positioned to create value.

Riot Platforms (RIOT)

Among Bitcoin (BTC-USD) mining stocks, Riot Platforms (NASDAQ:RIOT) seems to be a steal below $10. If the execution of growth plans is right, I expect multi-bagger returns from RIOT stock in the next few years. Coming to valuations, RIOT stock trades at a forward P/E of 13.5. For a company that’s on a high-growth trajectory, the valuation gap is significant.

An important point to note is that as of Q1 2024, Riot reported a zero-debt balance sheet. Further, a cash buffer of $1.3 billion (including digital assets), provides high financial flexibility for pursuing aggressive growth and Riot has some big plans.

To put things into perspective, Riot reported a hash rate capacity of 12.5EH/s as of Q1 2024. The company plans to increase capacity to 31.5EH/s by the end of the year. Further, the long-term plan is to boost capacity to 100EH/s by 2027. This is likely to translate into multi-fold growth in revenue and cash flows in the next five years.

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.