When the markets crashed due to the pandemic, it seemed like the end of the world. However, dozens of stocks delivered multi-fold returns over the next 12-18 months. The euphoric rally in growth stocks was largely over towards the end of 2021. A key reason being contractionary policies coupled with toned down growth expectations.

As the markets correct, there is pessimism among investors. However, the stage is also being set for the next rally. Over decades, markets have continued to remain in an uptrend amidst intermediate correction. While economic headwinds might sustain for the next few quarters, stocks bottom out well ahead of the economy bottoming out.

It’s therefore a good time to gradually accumulate growth stocks. If there is any further correction, quality growth stocks can be averaged down.

This column will focus on five growth stocks that can deliver multi-fold returns in the long-term.

Growth Stocks to Buy: Li Auto (LI)

Over a six-month period, Li Auto (NASDAQ:LI) has been an outperformer among electric vehicle (EV) stocks. Almost all major EV stocks have delivered negative returns during this period. On the other hand, LI stock is higher by 19%.

I further believe that LI stock is positioned to be a value creator in the coming years. It’s worth noting that the company still has just one EV model that was launched in November 2019. The model, LI ONE, has been driving strong deliveries growth and Li Auto has also been reporting positive free cash flows.

Recently, the company unveiled Li L9, which is a six-seat, full-size flagship SUV. Deliveries for the SUV will commence in August 2022. This is a potential catalyst for deliveries growth through 2023.

It’s also worth noting that Li reported cash and equivalents of $8 billion as of Q1 2022. There is ample financial flexibility to invest in aggressive store expansion, product development and manufacturing expansion. Overall, Li stock is among the quality EV stocks that’s positioned to deliver multi-fold returns.

Rada Electronic (RADA)

With the defense sector in the limelight due to rising geo-political tensions, Rada Electronic (NASDAQ:RADA) is worth holding. The emerging defense company with a focus on tactical radars has a total addressable market of $6 billion.

Recently, Rada Electronic announced an all-share merger agreement with Leonardo DRS. The latter is a provider of advanced defense electronics products and technologies. For 2021, the combined entity is likely to report revenue of $2.7 billion and adjusted EBITDA of $305 million.

The merger is likely to be value creating with the addressable market expanding to $19 billion. Further, with a strong balance sheet, the company will be positioned for aggressive international expansion.

Over the long-term, the merged entity is likely to deliver top-line growth of mid to high single digit compound annual growth rate (CAGR). With a strong credit profile, the company also plans further inorganic growth.

With positive industry tailwinds, the merger seems to have come at the right time. I believe that RADA stock can be considered for multi-fold returns.

Growth Stocks to Buy: Tilray (TLRY)

After a correction of 81% in the last 12-months, Tilray (NASDAQ:TLRY) looks poised for a reversal. I believe that there are several positive catalysts in the next few years for TLRY stock.

As an example, Federal level legalization of cannabis is always a consideration. That possibility will open-up a big addressable market and TLRY stock would likely surge.

It’s also worth noting that for Q3 2022, Tilray reported revenue of $152 million. On a year-on-year basis, revenue increased by 23%. Revenue growth is likely to accelerate as medicinal cannabis also gains traction.

Tilray has outlined plans to clock revenue of $4.0 billion by 2024. A key component of this plan is to accelerate growth in the wellness space. I also believe that further consolidation is due in the industry. The Tilray-Aphria merger might just be the beginning of inorganic growth for the company.

Overall, TLRY stock seems significantly oversold. It’s worth noting that 16 analysts have a 12-month forward price forecast (median) of $7 for the stock. This would itself imply more than 100% returns from current levels of $3.3.

Lithium Americas (LAC)

Lithium Americas (NYSE:LAC) is another quality name among growth stocks to buy. After a correction of 27% year-to-date, LAC stock is in an accumulation zone.

The demand for lithium will continue to remain strong in the long-term with rising adoption of EVs. Lithium Americas is well positioned to cater to this demand with some high-quality assets.

The company’s Thacker Pass project has a mine life of 46 years and an after-tax net present value of $2.6 billion. The company also has 44.8% stake in Cauchari-Olaroz, which can deliver an annualized EBITDA of $308 million.

Once these assets are operational, the company has robust EBITDA and cash flow potential. Importantly, if lithium remains in a long-term uptrend, the NPV of the assets is likely to be higher.

Currently, Lithium Americas has $500 million in cash and equivalents. This will ensure steady development of the projects. With Cauchari-Olaroz commissioning due in the second half of 2022, there is a potential catalyst for near-term stock upside.

Growth Stocks to Buy: Coupang (CPNG)

After listing, Coupang (NYSE:CPNG) stock had touched highs of $46. There has been a massive correction in the last six-months and the stock trades at $12.2. I believe that CPNG stock is oversold and poised for a comeback rally.

A key reason to be positive on Coupang is clarity on the company’s profitability and cash burn scenario. The company expects long-term EBITDA margin in the range of 7% to 10%. Coupang also expects to report positive adjusted EBITDA by Q4 2022.

Coupang has also been reporting steady growth in revenue per active customer. Once marketing and selling expenses stabilize, growth in ARPU is likely to ensure EBITDA margin expansion.

It’s also worth noting that the total number of Korean online shoppers are estimated at 37 million. Coupang has 18 million active customers. Therefore, there is ample scope to reach a wider market. This factor coupled with international expansion is likely to ensure that healthy growth sustains.

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.