Irrespective of market conditions, there will always be stock-specific price action worth watching. Investors were largely bearish on Tesla (NASDAQ:TSLA) at the end of 2022, but the stock has already surged by 126% year-to-date in 2023. Big shifts in price action, such as these, are not uncommon in undervalued growth stocks.

Therefore, I think now is the time to ignore the macroeconomic noise and invest in some high-quality growth stocks. Of course, it makes sense to remain overweight blue-chip stocks. The good news for investors is that there are multiple attractive opportunities among fundamentally-strong growth stocks. My focus is on stocks with 100% upside potential in the next 12 to 18 months.

I must add that the stocks discussed represent companies that are worth holding beyond this investment horizon. There is a strong case for multi-bagger returns from these undervalued growth stocks if business developments remain positive.

Let’s talk about the reasons to be bullish in these three companies for the coming quarters.

Li Auto (LI)

One of the best names among undervalued growth stocks has to be Li Auto (NASDAQ:LI). The stock has surged more than 50% for year-to-date in 2023, and the rally comes at a time when peers like Nio (NYSE:NIO) and XPeng (NYSE:XPEV) are struggling. I expect the upside for LI stock to be sustained, considering the company’s healthy deliveries growth and strong vehicle margins.

For Q1 2023, Li Auto reported deliveries growth of 65.8% on a year-over-year basis. Further, for April and May, deliveries growth was 516% and 146%, respectively, on a year-over-year basis. Clearly,  this recent rally in LI stock has been backed by strong fundamental developments. The upside in deliveries has been on account of the launch of new models coupled with aggressive retail expansion.

It’s also worth noting that for Q1, Li Auto reported gross vehicle margins of 19.8%. Further, the company delivered free cash flow of $975.9 million. With robust cash flows and a strong cash buffer, there is ample flexibility for the company to continue investing in product development and expansion.

Marathon Digital (MARA)

Marathon Digital (NASDAQ:MARA) is another stock that has skyrocketed in 2023, providing investors with impressive upside of 175%. I however believe that MARA stock is still undervalued, with the majority of its growth yet to come. I must add that this view assumes that Bitcoin (BTC-USD) remains in an uptrend in 2024. That said, the probability of Bitcoin surging is meaningful, with the halving due in the coming year.

Specific to Marathon, the company has been on an expansion spree. As of May, the company increased its operational hash capacity to 15.2EH/s. Additionally, its installed hash rate has increased to 20.1EH/s and Marathon expects further growth in capacity to 23EH/s.

In May, Marathon produced 40.2 Bitcoin per day, which was 366% higher on a year-on-year basis. The real impact of the growth in digital assets will be seen when Bitcoin is above $50,000. At that level, the company’s free cash flow is likely to be robust. I would not be surprised if MARA stock exceeds expectations with a rally of over 100% within the next 12 to 18 months.

Miniso Group (MNSO)

Miniso Group (NYSE:MNSO) stock is another stock with 100% upside potential by the end of 2024. The undervalued growth stock has surged in 2023. However, at a forward price-earnings ratio of 22.5-times, MNSO stock remains attractive. Considering the company’s global expansion and margin trends, I remain bullish.

As an overview, Miniso is engaged in the retail and wholesale of lifestyle products globally. As of Q2 2023, the company reported 5,440 stores globally. On a year-on-year basis, the number of stores increased by 395.

There are two important points to note. First, the number of stores in the overseas market swelled to 2,115. The company has been pursuing aggressive expansion in Europe, Latin America, and other parts of Asia. With continued stores growth, I expect revenue to accelerate in the coming quarters.

Further, the company’s gross margin for Q2 was 40% and increased by 890 basis points on a year-over-year basis. Margin expansion has been encouraging, and is likely to be sustained as operating leverage improves and spending per ticket grows.

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.