Considering the broad market outlook, I believe it’s a good time to buy potential multibagger [penny stocks](https://investorplace.com/stock-types/penny-stocks/) with an investment horizon of 24 months.There is a strong case for multiple rate cuts in 2024 and potentially in 2025 to avoid a recession.This would imply that the financial markets will be flooded with liquidity.Penny stocks tend to perform well in this scenario.However, I am not talking about the likes of GameStop (NYSE: [GME](https://investorplace.com/stock-quotes/gme-stock-quote/)) that skyrocketed during the meme stock euphoria.The rally fizzled out relatively soon.
My focus is on penny stocks that represent companies with an attractive underlying business or asset that trade at a valuation gap.
Positive market sentiments coupled with business developments will ensure that these stocks surge higher.
In my view, these are 5-bagger penny stocks and I expect these returns before the end of 2025.Let’s discuss the reasons why these stocks deserve a place in the portfolio.Bitfarms (BITF) This is not the first time that I am discussing Bitfarms (NASDAQ: [BITF](https://investorplace.com/stock-quotes/bitf-stock-quote/)) in the last few months.I am pleased that BITF stock has surged by 47% in the last one months.
With Bitcoin ( [BTC-USD](https://investorplace.com/cryptocurrency/btc-usd/)) trading above $40,000, I maintain my bullish view on the stock for multibagger returns.Potential rate cuts in 2024, Bitcoin halving, and the possibility of a spot Bitcoin ETF are some reasons to be bullish on the cryptocurrency.Earlier this year, Standard Chartered had predicted that Bitcoin is [likely to touch $120,000](https://www.bloomberg.com/news/articles/2023-07-10/standard-chartered-ups-bitcoin-forecast-to-120-000-by-end-2024) by the end of 2024.If this holds true, I expect BITF stock to be trading in double digits.
Of course, the Bitcoin rally must be associated with positive company specific developments.There is good news on that front with Bitfarms undertaking massive hash rate capacity expansion.As of November, Bitfarms reported hash rate capacity of 6.4EH/s.The target is to [boost capacity to 17EH/s](https://d1io3yog0oux5.cloudfront.net/_ce52617c6e138cc02ce20fbcb6506239/bitfarms/db/862/8411/pdf/BITF.12.01.23Preso.Final.pdf) by the second half of 2024.
This will translate into stellar revenue and cash flow upside.Yatra Online (YTRA) With healthy GDP growth, favourable demographics, and an increasing per capita income, the travel and tourism market in India is at an inflection point of growth.Yatra Online (NASDAQ: [YTRA](https://investorplace.com/stock-quotes/ytra-stock-quote/)), an online travel company, is expected to benefit from positive industry tailwinds.After a correction in the last 12 months, YTRA stock seems undervalued and poised for a big rally.
For Q2 2024, Yatra reported revenue of $11.4 million, which was [higher by 14%](https://investors.yatra.com/press-releases/press-release-details/2023/YATRA-ONLINE-INC.-ANNOUNCES-RESULTS-FOR-THE-THREE-MONTHS-SEPTEMBER-30-2023/default.aspx) on a year-on-year (YOY) basis.Further, the Company reported positive adjusted EBITDA.I believe that revenue is likely to accelerate in the coming quarters.In terms of growth catalyst, Yatra has a customer base of 800 large corporations with an addressable [employee base of more than seven million](https://s22.q4cdn.com/850749348/files/doc_presentations/2023/Nov/21/yatra-investor-presentation-november-2023.pdf).
The corporate travel market is likely to be a key growth driver.The consumer market provides an additional growth momentum.It’s worth noting that MakeMyTrip (NASDAQ: [MMYT](https://investorplace.com/stock-quotes/mmyt-stock-quote/)) is the largest Indian online travel booking company and trades at a valuation of $4.5 billion.In comparison, Yatra has a valuation of $94 million.
With a big addressable market, there is ample scope for multiple players to grow and Yatra is likely to create immense value.Curaleaf Holdings (CURLF) Towards the end of October, Curaleaf Holdings (OTCMKTS: [CURLF](https://investorplace.com/stock-quotes/curlf-stock-quote/)) stock had touched lows of $2.6.Currently, CURLF stock trades higher by 48% at $3.86.I believe this is just the beginning of the upside and the stock is poised for multibagger returns.
There are multiple reasons to be bullish on Curaleaf.First, unlike several cannabis companies, Curaleaf is not struggling with cash burn.For Q3 2023, the company reported operating and free cash flow of $47 million and $33 million respectively.Curaleaf therefore has high financial flexibility to pursue aggressive growth.
Further, Curaleaf reported muted revenue growth in Q3 2023.However, the company has guided for “a [strong end to 2023](https://ir.curaleaf.com/2023-11-09-Curaleaf-Reports-Third-Quarter-2023-Results) and an exciting 2024.” It’s likely that revenue and EBITDA growth will accelerate in the coming quarters and this will translate into positive stock price action.I must add that Curaleaf has been [investing heavily](https://filecache.investorroom.com/mr5ir_curaleaf/579/Curaleaf%20Investor%20Deck%202Q23.pdf) in research and development.The medicinal cannabis segment is likely to be a potential value creator in the European markets.
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](https://investorplace.com/corporate/investorplace-publishing-guidelines/)..
