The year has been disappointing for growth stocks after big returns in 2021. It does not come as a surprise with earnings growth expectations being revised. Inflationary pressure also added to the woes, with policymakers pursuing an aggressive contractionary monetary policy.

However, growth stocks have discounted multiple macroeconomic headwinds. After a deep correction, growth stocks are in a consolidation phase before the next rally. It’s, therefore, a good time to go on a selective shopping spree.

Growth stocks representing companies with good fundamentals and positive industry tailwinds are worth considering. My focus in this column is particularly on growth stocks that have possible upside catalysts in 2023. At the same time, these stocks are also worth holding for the next few years.

Given the challenging market conditions, I would expect conservative returns from a portfolio of these stocks. However, with some conviction, returns will comfortably beat inflation.

Let’s discuss the reasons that make these growth stocks interesting for 2023.

Coupang (CPNG)

Coupang (NYSE:CPNG) stock has already been an outperformer, with returns of 51% in the last six months. This momentum will likely sustain as the company significantly improves at the EBITDA level.

For Q3 2022, Coupang reported 27% year-on-year growth in revenue to $5.1 billion. The company reported an EBITDA margin of 3.8% for the same period. With healthy improvement in key margins, CPNG stock is poised for further upside in 2023.

It’s worth noting that besides cost control, the company’s net revenue per active customer has been trending higher. If this trend sustains, it will not be long before the company achieves its goal of a 7% to 10% steady-state adjusted EBITDA margin.

From the perspective of revenue growth, Coupang believes that the total number of Korean online shoppers is 37 million. Coupang has an active customer base of 18 million. Therefore, there is ample scope for penetration. International expansion will also support revenue growth.

Lucid Group (LCID)

I would not be surprised if Lucid Group (NASDAQ:LCID) is higher by at least 50% in 2023. After a sustained correction in 2022, LCID stock is trading at attractive valuations.

The first reason to be bullish is that the Lucid Air model already has a reservation of 34,000. As supply chain issues ease on a relative basis, production and deliveries will accelerate in 2023.

Lucid has also announced that the company will open reservations for Lucid Gravity in early 2023. If the luxury SUV has strong bookings, it will be another reason the stock will trend higher.

The company had already indicated that the cash buffer of $3.85 billion is sufficient to fund operations through 2023. With the company recently raising additional funding of $1.5 billion, Lucid is financed through 2024. The current dilution factor is already discounted in the stock.

Overall, the EV industry has had tailwinds beyond this decade. Lucid seems well-positioned to benefit with a focus on innovation.

Solid Power (SLDP)

Solid Power (NASDAQ:SLDP) is another interesting bet among growth stocks for multibagger returns. The coming year is likely to be critical, with potential news that can dictate price action.

As an overview, Solid Power is in the development stage for solid-state battery cells. The solid-state battery market size is expected to increase to $13.15 billion by 2030. Therefore, there is significant headroom for growth.

While the commercialization of these batteries might still be a few years away, the reason to be bullish on SLDP stock is as follows – In June, the company announced the installation of an EV cell pilot line. The pilot line is expected to produce 15,000 cells per year. By Q1 2023, Solid Power expects to silicon EV cells to automotive partners for validation testing.

I would be betting on positive news from validation testing. That’s likely to translate into a big rally. The company’s automotive partners include Ford (NYSE:F) and BMW (OTCMKTS:BMWYY).

Marathon Digital (MARA)

It’s been a quick journey from euphoria to extreme fear related to cryptocurrencies. There are certainly reasons to be worried. However, it’s the best time to consider some exposure to crypto stocks. If the industry emerges from the current headwinds, quality crypto stocks can deliver multibagger returns.

Marathon Digital (NASDAQ:MARA) is an undervalued Bitcoin (BTC-USD) miner. The business developments have remained progressive even as digital assets plunge in value.

It’s worth noting that as of November, the company had a hashing capacity of 7.0EH/s. Marathon plans to increase capacity to 23EH/s by June 2023. The company is poised for meaningful growth in Bitcoin mining if this target is achieved.

Marathon also has robust financial flexibility, with cash and digital assets worth $188.2 million as of Q3 2022. With the growth in capacity, digital assets will continue to swell. If the Bitcoin trend reverses, MARA stock will be poised for a meaningful rally.

Li Auto (LI)

Li Auto (NASDAQ:LI) stock has witnessed a sharp correction from June highs. However, the stock seems to have bottomed out, and there are ample catalysts for positive price action.

For October, Li reported a 31.4% growth in vehicle deliveries to 10,052 vehicles. Delivery growth has been healthy amidst economic and supply chain headwinds.

However, the key reason to be bullish is the introduction of new models. Li L9 has already exceeded 10,000 deliveries in September. Further, the company unveiled Li L8 and Li L7. These new SUV models will help in boosting delivery growth through 2023.

Another reason to like Li Auto is its fundamentals. The company reported a cash buffer of $8.0 billion as of Q2 2022. Additionally, the company has reported positive free cash flows on a sustained basis. As delivery growth continues, cash flows will accelerate. Li Auto will be positioned to fund future expansion with internal cash flows.

Cronos Group (CRON)

With the possibility of cannabis legalization on the cards, the coming year is likely to be bright for cannabis stocks. Cronos Group (NASDAQ:CRON) looks attractive among growth stocks to buy for a reversal rally.

Cronos operates in multiple countries through different brands. In the United States, the company sells hemp-derived consumer products and cosmetics. The company’s strategic stake in PharmaCann will also help in accelerating growth.

However, recreational cannabis products are exclusively sold in Canada. Cronos will likely expand its portfolio in the U.S. with recreational and medicinal cannabis on legalization.

For the first nine months of 2022, Cronos reported 42% revenue growth on a year-on-year basis. For the same period, adjusted EBITDA losses have narrowed. It’s worth noting that the company ended Q3 with cash and equivalents of $633 million. Therefore, there is ample financial flexibility to pursue aggressive expansion on legalization. Overall, CRON stock is attractive, and I expect multibagger returns if the legalization catalyst plays out.

Pinterest (PINS)

Pinterest (NYSE:PINS) stock has gained momentum with the company’s good numbers for Q3 2022. After a deep dive to oversold levels, the rally will likely sustain in the coming year.

For Q3, the company reported revenue growth of 8% on a year-on-year basis. However, global monthly active users were flat during the comparable period. An increase in average revenue per user, therefore, drove the growth.

The company’s ARPU from emerging markets is significantly lower compared to the United States and Europe. I expect ARPU growth to sustain, which will drive cash flows higher.

Pinterest has also been investing in platform development. A key objective is to make the platform shopping friendly. With sustained growth in the catalog and steady MAUs, advertising revenue is likely to increase.

PINS stock, therefore, looks attractive, with the company having robust cash flow upside visibility. The balance sheet remains strong and allows flexibility for continued investment in innovation.

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.