In the entire history of financial markets, equities have never failed to make a strong comeback after a disappointing phase. Be it the Great Depression of 1929 or the financial crisis of 2008, equities have staged a smart comeback. This overview is important because 2022 was the worst year for equities since the financial crisis of 2008. Growth and penny stocks were affected significantly.

There were several reasons for the correction. First, the markets had passed through a phase of euphoria and valuations looked stretched. The fed pursued aggressive rate hikes and that affected liquidity in the financial system. There were also sectoral growth adjustments in a post-pandemic world.

The current year also seems challenging, but equities seem to be in a zone of consolidation. A potential sentiment reversal can spark a renewed rally for the markets. One catalyst for stock upside is a possible dovish stance by the fed in the second half of 2023.

Overall, it’s a time for accumulation and there are several attractive penny stocks to consider for the long-term.

Solid Power (SLDP)

At $1.95, Solid Power (NASDAQ:SLDP) looks massively undervalued. It’s among the 10-bagger penny stocks to buy for the long term.

Of course, if the company is successful in commercializing solid state batteries, the upside potential will not be capped at 10x.

The company’s SP2 electrolyte production facility was commissioned in April. Further, the company is on track to deliver EV cells to automotive partners during the year. Solid Power’s automotive partners include BMW (OTCMKTS:BMWYY) and Ford (NYSE:F).

The company has already licensed its cell design and manufacturing process to BMW. This will help in accelerating research and development activities.

From a financial perspective, Solid Power ended Q1 2023 with cash and equivalents of $468.2 million. There is ample flexibility to make aggressive investments towards R&D.

Overall, as the company officially enters the automotive qualification process in 2023, SLDP stock is poised for big action.

Tilray Brands (TLRY)

For cannabis stocks, there are two scenarios in the coming years. First, if cannabis is legalized at the federal level, Tilray Brands (NASDAQ:TLRY) stock and several other cannabis stocks will deliver 10-bagger returns with ease.

However, even if regulatory headwinds sustain. There are some cannabis stories that will deliver value. Tilray Brands is among the interesting growth stories to accumulate.

A recent report indicates that U.S. cannabis sales will hit $71 billion by 2030 even without federal reforms. If we include Europe, the total addressable market will be over $100 billion. This underscores my view on potential multibagger penny stocks from the cannabis segment.

Specific to Tilray Brands, the company has been consistently delivering positive adjusted EBITDA. Tilray has also guided for positive free cash flow from all key business units in 2023.

With $408.3 million in cash and equivalents, the company has ample flexibility to invest in organic and acquisition driven growth.

Tilray has presence in Canada, Europe, and U.S. This, coupled with the fact that the company is into recreational and medicinal cannabis, implies a big addressable market.

Bitfarms (BITF)

Bitfarms (NASDAQ:BITF) stock has skyrocketed by 156% for year-to-date 2023. However, assuming a scenario where Bitcoin (BTC-USD) remains in an uptrend, BITF stock is among the potential 10-bagger penny stocks.

There are ambitious targets for Bitcoin with Standard Chartered anticipating $100,000 levels for the cryptocurrency by the end of 2024.

This is likely with Bitcoin halving due in 2024. Additionally, a dovish stance by the fed can trigger a big rally for risky asset classes in the second half of 2023.

For Q1 2023, Bitfarms reported $30 million in revenue and $6 million in EBITDA. On a quarter-on-quarter basis, adjusted EBITDA improved by 500%. The low-cost Bitcoin miner is positioned to benefit as realized prices swell.

Another point to note is that Bitfarms has lowered debt by $140 million in the last 10 months. As of April, the company’s total debt was $19 million. This provides ample flexibility for mining expansion. The company has already boosted its mining capacity to 5EH/s as of May.

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.