Finding the right stocks to buy for 1,000% gains in current market conditions seems challenging. However, it’s not impossible. In any economic scenario, there are stocks and sectors that tend to outperform.

During the covid-19 pandemic, stocks from the pharmaceutical, e-commerce and social media segments delivered manifold returns. Similarly, in the last bull market for Bitcoin (BTC-USD), several crypto stocks skyrocketed.

It’s also worth noting that making 1,000% gains in large-cap stocks is unlikely, especially if the investment horizon is three to five years. Investors, therefore, need to use a bottom-up analysis to scan mid-cap and small-cap stocks.

I would prefer to remain conservative in terms of the time horizon on stocks to buy for 1,000% gains. However, the three stocks can deliver these returns quicker than expected. Let’s discuss the triggers for these stocks that can spark a big rally.

Marathon Digital

With the crash in cryptocurrencies, Marathon Digital (NASDAQ:MARA) stock touched lows of $5.2. Even as Bitcoin remains depressed, MARA stock has more than doubled from lows.

With a three-year horizon and an assumption that Bitcoin gradually trends higher, investors can make 1,000% gains in MARA stock. For investors who are bullish on Bitcoin, the stock is massively undervalued.

As of August 2022, Marathon reported a mining capacity of 3.2EH/s. The company expects to reach a capacity of 6.9EH/s over the next 90-days. Additionally, Marathon expects to ramp up capacity to 23EH/s by mid-2023. The company also has a healthy balance sheet to pursue expansion beyond this period.

If this growth is achieved, the stock is poised for a big rally. I must mention that the next Bitcoin halving is due in 2024. This is a major catalyst for the digital asset. Once Bitcoin trends higher and margins expand, the stock is likely to go ballistic.

Tilray

In November 2020, Tilray (NASDAQ:TLRY) was trading around $6 levels. With the presidential elections and hopes of cannabis legalization, TLRY stock skyrocketed to $65 by February 2021.

Of course, delay in the legalization process coupled with slower growth has resulted in renewed stock correction. The stock looks undervalued at current levels. Assuming a scenario where cannabis is legalized in the U.S. and Europe in the next few years, TLRY stock can deliver.

Tilray has already set a revenue target of $4 billion by 2024. With organic growth and acquisitions, this seems achievable. In particular, if regulatory headwinds wane.

I also like the fact that Tilray has been building a strong presence in Europe in the medicinal cannabis segment. This is likely to yield results in the next few years.

Overall, Tilray is among the top picks from the cannabis segment. The company continues to report positive adjusted EBITDA. Top-line acceleration is a big impending catalyst that’s likely after Federal level cannabis legalization.

Electrameccanica Vehicles

Electrameccanica Vehicles (NASDAQ:SOLO) stock has a higher risk as compared to the first two stock picks to make 1,000% gains. However, I would consider some exposure to this interesting and undervalued electric vehicle stock.

As an overview, Electrameccanica is in the business of production and sale of single-seat EVs. The company’s first model has already commenced commercial production. In the last three quarters, the company has delivered 174 SOLO vehicles.

I am bullish on this small-cap for two reasons. First and foremost, the company’s SOLO model has a base price of $18,500. A low-price EV is a differentiating factor in the highly competitive industry.

Furthermore, the company is also targeting restaurant and grocery chains to market SOLO as a cargo van. If Electrameccanica can make inroads in this market, the potential is significant.

Currently, the company has an asset-light model with manufacturing outsourced to Zongshen (China). Funding requirements are therefore not significant. If sales gain traction, Electrameccanica is likely to set up its own production unit.

The company’s long-term plan includes expansion beyond the U.S. Considering the sector tailwinds, I am optimistic that the stock can deliver multi-fold returns.

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.