If rate cuts are indeed a big catalyst, the outlook for equities is bullish for the next year and 2025.Consultancy firm Capital Economics believes that the S&P 500 Index can touch [6,500 in 2025](https://www.theglobeandmail.com/investing/markets/stocks/RY/pressreleases/18338296/) with [artificial intelligence stocks](https://investorplace.com/industries/technology/artificial-intelligence/) likely to be the market upside drivers.Considering the bullish outlook, it’s wise to look at some of the best [penny stocks](https://investorplace.com/stock-types/penny-stocks/) to buy for multibagger returns.Notably, a rally in the index is followed by a potentially bigger rally in growth and penny stocks.In the euphoric rally of 2021, it was not surprising to see multibagger returns in penny stocks in a matter of months.In comparison, these estimates are conservative.Some of the undervalued penny stocks to buy can deliver 10-bagger returns by 2025.I must add that the ideas are non-speculative.
Therefore, certain catalysts must play out for these stocks to skyrocket.Let’s discuss the reasons to be bullish.Kinross Gold (KGC) Kinross Gold (NYSE: [KGC](https://investorplace.com/stock-quotes/kgc-stock-quote/)) is a massively undervalued gold miner that’s poised to deliver multibagger returns.Of course, the basic assumption is that gold trades around $2,500 an ounce by 2025.True, gold has remained sideways to lower in the last few quarters.That’s understandable with the fed pursuing contractionary monetary policies.However, with swelling government debt globally and rise in geopolitical tensions, I am bullish on gold surging higher.Additionally, a strong case exists for rate cuts in 2024, which can trigger a sharp rally in gold.
In terms of potential value creation, Kinross [reported](https://www.kinross.com/news-and-investors/news-releases/press-release-details/2023/Kinross-reports-strong-2023-second-quarter-results/default.aspx) operating cash flow of $459 million for Q2 2023.With gold around $1,900 an ounce, the company is likely to deliver annual OCF of $1.8 billion.Assuming gold trades at $2,500 an ounce, OCF will be in excess of $3 billion.Furthermore, Kinross stated a liquidity buffer of $1.9 billion.
I expect the company to pursue opportunistic acquisitions to boost the production outlook.That’s another impending upside catalyst for a stock that trades at a valuation gap.Bitfarms (BITF) Bitfarms (NASDAQ: [BITF](https://investorplace.com/stock-quotes/bitf-stock-quote/)) stock currently trades at 97 cents with Bitcoin ( [BTC-USD](https://investorplace.com/cryptocurrency/btc-usd/)) trading at $27,300.I believe that the stock can trade above $10 if Bitcoin crosses previous highs in the next 24 months.I assign a high probability to Bitcoin skyrocketing in 2024.
The first reason is the halving event.Further, rate cuts will support the digital asset bull run.Standard Chartered believes that Bitcoin can trade at $120,000 by the [end of 2024](https://www.reuters.com/technology/standard-chartered-bumps-up-bitcoin-forecast-120000-2023-07-10/).Specific to Bitfarms, the company has pursued continued growth in Bitcoin mining capacity.As of September, the company reported capacity of 6.1EH/s, which was higher by 45% on a year over year (YOY) basis.
By March 2024, the company is [targeting capacity](https://d1io3yog0oux5.cloudfront.net/_1c523450deb2164f2bafb61f9bb289a3/bitfarms/db/862/8403/pdf/BITF.10.01.23Preso.Final.pdf) of 7EH/s.Being a low-cost Bitcoin miner, Bitfarms is positioned for healthy cash flows if Bitcoin surges higher.
Notably, Bitfarms has a stalwart balance sheet.As of September, the company reported an impressive cash buffer of $65 million.Additionally, Bitfarms has guided to be debt free by February 2024.With high financial flexibility, Bitfarms will be positioned for aggressive expansion.Tilray Brands (TLRY) Tilray Brands (NASDAQ: [TLRY](https://investorplace.com/stock-quotes/tlry-stock-quote/)) is among the most undervalued cannabis penny stocks to buy.Assuming a scenario where federal level legalization of cannabis happens in 2024, TLRY stock can deliver 10-bagger returns in few months.However, even in a delayed legalization scenario, the outlook for Tilray is positive.Recently, Tilray has been on an acquisition spree to expand beyond cannabis.
With the [acquisition](https://ir.tilray.com/news-releases/news-release-details/tilray-brands-closes-transaction-acquiring-eight-beer-beverage) of eight beer and beverage brands from Anheuser-Busch (NYSE: [BUD](https://investorplace.com/stock-quotes/bud-stock-quote/)), Tilray is now the fifth largest craft brewer in the U.S.The segment acquisitions have also boosted the Company’s strategic infrastructure within the states.
This can help in aggressive growth once cannabis is legalized.For financial year 2024, Tilray [has guided](https://ir.tilray.com/news-releases/news-release-details/tilray-brands-reports-record-q4-financial-results) for positive adjusted free cash flow.
With operating leverage and cost-cutting measures, the company has successfully stemmed the cash burn.EBITDA margin expansion is another positive catalyst for TLRY stock trending higher.On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day.That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators.
If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.Read More: [Penny Stocks — How to Profit Without Getting Scammed](https://investorplace.com/2014/05/fraud-penny-stocks-scams/) 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/).
