Penny stocks carry high risk. However, spot the right ones, and you could be sitting on a potential multi-bagger. I admit that finding such stocks – especially in today’s volatile environment can be difficult – but they’re out there. In fact, here are a few I believe could triple in the next six months.

Tilray (TLRY)

One of the top penny stocks to consider is Tilray (NASDAQ:TLRY), which I believe could deliver multi-bagger returns with patience. For one, we have to remember that an overwhelming majority of Americans believe that cannabis should be legalized for medicinal or recreational use. Two, parts of Europe are looking to legalize its use, including Germany. Three, Tilray is also attractive from a business perspective. The company continues to report positive adjusted EBITDA. It also reported positive free cash flows in the last quarter. Overall, penny stocks like TLRY stock trade at deeply undervalued levels and are worth considering for the long term.

Curaleaf (CURLF)

Curaleaf Holdings (OTCMKTS:CURLF) stock is another name among cannabis stocks poised for multi-bagger returns. Similar to Tilray, the company’s business developments remain positive and could go ballistic if we see further legalization in the U.S. and abroad. One point to note is that Curaleaf is present in 21 states in the U.S. The company is therefore well positioned to accelerate growth once cannabis is legalized at the Federal level.

I also like the fact that Curaleaf has consistently reported positive adjusted EBITDA. For Q3 2022, the company reported an adjusted EBITDA of $84 million and a margin of 25%. With operating leverage, the company is poised to deliver robust cash flows. Curaleaf has also been investing significantly in research and development. Currently, the company has 15 new products for launch. Additionally, 50 products are in the front-end innovation process. The launch of new products will ensure healthy revenue growth.

Polestar Automotive (PSNY)

Polestar Automotive (NASDAQ:PSNY) stock trades at $5 and is undervalued among electric vehicle stocks. One reason to like Polestar is its strong delivery growth. For 2022, the company reported 80% growth in vehicle deliveries on a year-on-year basis. The current year looks bright for several reasons. The company will commence deliveries of Polestar 3 and will launch Polestar 4. Deliveries of Polestar 4 will commence in 2024. It’s worth noting that the company has a presence in 27 countries globally. With new models coupled with expanding global presence, the outlook is optimistic.

For the first nine months of 2022, Polestar has reported $1 billion in operating loss. However, with global expansion, an increase in cost was expected. With operating leverage, I believe that the adjusted EBITDA margin will improve in the coming years.

HIVE Blockchain (HIVE)

With the recent surge in Bitcoin (BTC-USD), it’s a good time to consider undervalued crypto penny stocks. If the crypto rally sustains, several undervalued stocks are poised for multi-bagger returns, including Bitcoin mining stocks like HIVE Blockchain (NASDAQ:HIVE). In fact, after a plunge of almost 70% in the last 12 months, the stock seems deeply undervalued.

Recently, HIVE reported Q3 2023 results and I see several positives. The company mined 787 Bitcoin during the quarter, which was higher by 13% on a year-on-year basis. This growth was driven by sustained addition in mining capacity. As of Sept., the company’s mining capacity was 2.45EH/s. This has increased to 3.33EH/s as of February 2023. It’s also worth noting that HIVE reported the average cost of Bitcoin production at $13,599 for Q3 2023. With the recent rally in Bitcoin, I expect a significant expansion in gross mining margin in the coming quarters. With these positives, HIVE stock seems poised for a significant rally.

Solid Power (SLDP)

Shares of Solid Power (NASDAQ:SLDP) already surged by 40% for year-to-date 2023. With several positive business developments, I expect the rally to sustain. At the moment, the company is working towards the commercialization of solid-state batteries. A major advantage for the company is the backing of automotive majors which include BMW (OTCMKTS:BMWYY) and Ford (NYSE:F).

Even better, the company recently signed an expanded research and development agreement with BMW. Under this agreement, Solid Power will license its solid-state manufacturing process to BMW. This is likely to help in the accelerated development of solid-state batteries through parallel research. It’s also worth noting that Solid Power has already initiated the production of EV cells in its pilot line. EV cells will be given to automotive partners in 2023 for validation testing. With a strong financial profile coupled with positive business developments, SLDP stock is positioned to deliver multi-bagger returns.

Kinross Gold (KGC)

Kinross Gold (NYSE:KGC) stock is another one of the top penny stocks that could see multi-bagger returns. Not only is it benefiting from the gold price recovery, but it’s also trending higher on strong earnings growth. The company ended Q4 2022 with a liquidity buffer of $1.8 billion. Given the financial flexibility, Kinross is positioned for aggressive growth. I will not be surprised if Kinross pursues asset acquisition in the coming quarters.

It’s worth noting that Kinross has guided for stable gold production through 2025. Therefore, even without inorganic growth, Kinross is positioned to deliver value. KGC stock offers a dividend yield of 3.2%. If gold remains in an uptrend, dividend growth seems likely.

Safe Bulkers (SB)

Another one of the top penny stocks to consider is Safe Bulkers (NYSE:SB), which is in the business of marine dry bulk transportation services. Not only does it carry a dividend yield of 5.52%, but it’s also undervalued with a forward price-earnings ratio of 3.0. Even with some economic headwinds, global dry bulk demand is expected to increase by 1.1% in 2023. With a historically low fleet order book, Safe Bulkers is well-positioned to benefit. Further, with a blue-chip client base, the cash flow visibility is robust. From a growth perspective, the company has an order book of 11 vessels by 2025. In a steady demand growth scenario, the fleet growth will be associated with an upside in cash flows.

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Read More: Penny Stocks — How to Profit Without Getting Scammed

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.