The current year has been among the worst in recent times for growth stocks. The overall market sentiment has also been depressing, which is reflected in the U.S. investor sentiment (bull-bear spread). Of course, potential recession, inflation, and contractionary policies are reasons for concern. However, it’s not the time to sell. On the contrary, it’s one of the best times to consider stocks to buy for the next few years.

Investors could have hardly guessed that the best phase for growth and penny stocks was coming immediately after the pandemic-driven market meltdown. It’s impossible to predict the markets. However, it’s possible to pick deeply undervalued stocks to buy amidst challenging market conditions.

When sentiments reverse, these undervalued stocks can deliver multibagger returns. Let’s talk about three stocks to buy at current levels.

Li Auto (LI)

Earlier this year, Li Auto (NASDAQ:LI) stock had surged to highs of $41.5. However, amidst a deep correction in electric vehicle stocks, LI stock trades at $18.72. This seems like a golden accumulation opportunity.

For September 2022, Li reported vehicle deliveries of 11,531. On a year-on-year basis, deliveries increased by 62.5%. With deliveries commencing for the company’s second model, Li L9, growth is likely to accelerate in the coming quarters.

Recently, Li Auto also unveiled two new models. Li L8 is a six-seat, large, premium smart SUV for families. Further, Li L7 is a five-seat, large flagship smart SUV for families. The bookings for these EVs have also commenced and will contribute to delivery growth in 2023.

With an attractive line-up, Li Auto is positioned for solid growth once supply chain concerns ease. Further, with cash and equivalents of $8 billion, Li has ample flexibility to invest in product development and aggressive expansion within China.

Coupang (CPNG)

E-commerce stocks have also been battered as growth decelerates in a post-pandemic world. The correction presents an attractive entry point into several stocks.

I am bullish on Coupang (NYSE:CPNG) stock for multibagger returns. In terms of company-specific developments, EBITDA margin improvement is the biggest reason to be optimistic.

For Q2 2022, Coupang achieved positive adjusted EBITDA. Further, for 2022, the company has revised its EBITDA guidance to positive from earlier guidance for EBITDA level losses.

With decent revenue growth sustaining, Coupang is likely to report sustained improvement in margins. It’s worth noting that Coupang still has headroom for growth in Korea. The company believes that it can still double active customers within the Korean markets. Additionally, the company is planning entry into other Southeast Asian markets.

Coupang also reported $3.1 billion in cash and equivalents as of Q2 2022. The company has the strong financial flexibility to invest aggressively in marketing and international expansion.

Marathon Digital (MARA)

Crypto stocks have been struggling as Bitcoin (BTC-USD) trades sideways after a big correction. It seems that Bitcoin will bottom around the $19,000 level. Marathon Digital (NASDAQ:MARA) is a high-risk stock that can deliver multibagger returns once Bitcoin trends higher.

It’s worth noting that MARA stock touched lows of $5.2 in July 2022. While Bitcoin has not recovered, the stock has doubled from lows. The reason is steady business progress even as the cryptocurrency world remains depressed.

As of October 5, Marathon reported a mining capacity of 5.7EH/s. By June 2023, Marathon expects to boost capacity to 23EH/s. Therefore, significant growth in Bitcoin mining capacity is due.

This will translate into MARA stock surging higher once Bitcoin moves. With the next Bitcoin halving due in May 2024, the outlook is positive. The stock is, therefore, worth holding for the next few years.

Marathon also has a strong balance sheet with $71.4 million in cash and digital assets worth $207 million. Cash burn in the next few quarters is unlikely to be a concern.

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.