Spotting multibagger growth stocks is not as challenging as it seems. In many cases, making money is a factor of discipline and patience. Like business cycles, the stock market has various cyclical trends.

When it comes to making big money, I believe that investors should closely follow the market cycle of euphoria and fear. A simple strategy would be to sell in times of euphoria and buy in times of fear. Of course, it’s easier said than done. However, an alert mind can spot the opportunities.

If we look at growth stocks, 2021 was a year to make big bucks. For the most part of 2022, growth stocks were depressed. Be it earnings revision or the probability of a recession, growth stocks have discounted the bad news.

Over the next 12-24 months, I expect the euphoric growth stocks cycle to return. At least for some industries and fundamentally strong businesses. It’s therefore a good time to spot multibagger growth stocks.

Let’s talk about three potential multibagger growth stocks to buy at current levels.

Albemarle Corporation (ALB)

Albemarle Corporation (NYSE:ALB) stock has trended higher by 26% in the last 12 months.

However, the growth stock looks undervalued at a forward price-earnings ratio of 8.8. With lithium being an attractive investment theme, ALB stock is poised for multibagger returns.

For FY2022, Albemarle reported sales and adjusted EBITDA growth of 120% and 299% respectively on a year-on-year basis. Robust growth was backed by an increase in lithium conversion capacity coupled with higher price realization.

For the current year, Albemarle has guided for revenue growth of 55% to 75%. Further, the company expects an operating cash flow of $2.2 billion.

It’s also worth noting that the company ended 2022 with a lithium conversion capacity of 200ktpa. Albemarle has guided for an increase in capacity to 550ktpa (mid-range) by 2030. With sustained growth in capacity, the cash flow outlook is robust.

Given the growth guidance, ALB stock seems deeply undervalued and is among the top multibagger growth stocks to consider.

Riot Platforms (RIOT)

Bitcoin (BTC-USD) has surged by over 50% from the lows of 2022. It finally seems that the crypto winter has ended. It makes sense to consider exposure to undervalued crypto stocks for multibagger returns.

Riot Platforms (NASDAQ:RIOT) is my top pick among Bitcoin mining stocks. The key reason is a strong balance sheet even after navigating an extended period of low crypto prices. As of September 2022, Riot reported $255 million in cash and zero debt. This positions the company for aggressive growth if Bitcoin recovery sustains.

It’s worth noting that as of Q3 2022, the company reported a mining capacity of 7.7EH/s. Capacity has increased to 9.3EH/s in January 2023. Riot further expects to boost capacity to 12.5EH/s by the first half of the year. Given the strong cash buffer, the next leg of expansion seems likely after Q2 2023.

Another reason to like Riot is healthy margins. For year-to-date Q3 2022, the company reported a gross mining margin of 65.4%. With the recent upside in Bitcoin, the margin is likely to improve significantly in 2023.

Polestar Automotive (PSNY)

It didn’t take time for Tesla (NASDAQ:TSLA) to bounce back strongly from recent lows. I believe that the worst of correction for EV stocks is over. It’s therefore a good time to accumulate some attractive names.

Polestar Automotive (NASDAQ:PSNY) looks like a potential multibagger with the company pursuing aggressive growth. For 2022, Polestar delivered 51,500 cars, which was higher by 80% on a year-on-year basis. The company has guided for 60% growth in deliveries for the current year.

Polestar however reported widening of operating level losses in 2022. Operating leverage is likely to kick-in with sustained growth in vehicle deliveries. This is a potential catalyst for PSNY stock upside.

It’s worth noting that Polestar 4 is expected to be launched in 2023. Further, Polestar 5 and 6 and due for launch in 2024 and 2026 respectively. With an expanding product portfolio coupled with increasing global presence, the outlook is bullish for Polestar.

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.