Through the power of compounding, you don't actually need a whole lot of capital to start investing in stocks. Top growth stocks, after all, can turn even a modest amount like $1,000 into $3,000 or perhaps $10,000 over the course of five to 10 years. 

What's more, this protracted bear market has arguably created some tremendous bargains for stock investors. Here are two heavily discounted Nasdaq-listed stocks that could deliver outsize returns for shareholders over the balance of the decade. 

1. Tesla

Electric vehicle (EV) giant Tesla (TSLA 12.06%) went from a supercharged growth stock over the last decade to an underperforming laggard in 2022. Shares of the Elon Musk-led company slumped last year for a multitude of reasons, including but not limited to manufacturing slowdowns in China, steep price cuts on its vehicles, and inflationary pressures on key raw materials. Tesla stock, however, appears to be deeply undervalued following last year's weakness -- especially after the company's upbeat Q4 2022 earnings report.

What's the lowdown? Tesla's shares might be undervalued by as much as 52%, according to Seth Goldstein, CFA, an equity research analyst for Morningstar. Goldstein's optimism stems from three core issues:

  1. Tesla's surprisingly strong fourth-quarter earnings clearly show the company has robust demand for its EVs, even in an uncertain economic climate. 
  2. The company's operating margin should improve over the course of the decade as a result of declining raw material prices and the ramp-up of new production facilities. 
  3. Its various cutting-edge technologies ought to translate into a strong competitive moat, allowing the company to maintain its market share leadership in the emerging EV space.  

All told, Tesla stock looks like a downright bargain at current levels, especially for investors with a long-term mindset. 

2. Tilray Brands 

Wall Street analysts think Tilray Brands (TLRY) stock is wildly undervalued at current levels. If you're not familiar with this name, Tilray is a a Canadian cannabis and consumer packaged goods company. 

Speaking to the valuation point, Morningstar equity analyst Kristoffer Inton recently rolled out a fair value estimate on Tilray of $8 per share. The pot giant's stock, however, is presently trading at a far more modest $3.10 at the time of this writing. Put simply, the cannabis company's shares might be undervalued by as much as 158%.

What's the backstory? Despite posting 15 consecutive quarters of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), the Canadian cannabis, wellness, and alcohol company has lost a staggering 46% of its value over the prior 12 months. 

The reason? Tilray's shares have been negatively impacted by three key headwinds:

  1. A vast oversupply of licensed producers in its home market of Canada has resulted in price compression for all categories of cannabis-based products. 
  2. Heavy excise taxes on cannabis products have weighed on gross margins across the industry as a whole over the past year. 
  3. The slower-than-expected pace of legalization in high-value international markets has stifled the expansion efforts of globally active cannabis companies like Tilray. 

Why is Tilray a contrarian buy? The business is well-positioned to capitalize on the ongoing legalization efforts in large international markets like Germany, and it has the capital and resources to quickly expand into the U.S. market upon federal permissibility. Most importantly, though, Tilray is arguably one of the few Canadian cannabis companies actually capable of surviving the industry's early lean years. Underscoring this point, it has a solid balance sheet, an increasingly diverse revenue stream, and strategic partnerships with important players in both Canada and the U.S.

Eventually, Tilray's ability to simply stay afloat could to translate into double-digit sales growth and a far richer market capitalization, although this process may take the remainder of the decade to come to fruition.