The recent decline in inflation rates in the United States has alleviated concerns about a recession, leading to a positive impact on the Canadian equity markets. The S&P/TSX Composite Index has shown a 5% increase from last week’s low and is up by 8.6% for the year, while still remaining 1.9% below its all-time high.
Despite the overall improvement in investor confidence, some stocks on the TSX are facing pressure and have experienced significant declines in value compared to their 52-week highs. Two such stocks, while having lost over 25% of their value, present long-term growth potential and are currently trading at discounted prices. Investors are encouraged to consider accumulating these stocks for potential superior returns over time.
One of the stocks, Lightspeed Commerce, reported impressive first-quarter earnings for fiscal 2025, with a substantial increase in revenue and a significant reduction in net losses. Despite strong financial performance and optimistic guidance from management, the company is trading at a considerable discount compared to its 52-week high. With its focus on innovative product development and cost-cutting initiatives, Lightspeed Commerce presents a promising opportunity for long-term growth potential.
Another TSX stock trading at a significant discount to its 52-week high is Docebo, a provider of corporate e-learning solutions. With a strong second-quarter performance and raised guidance from management, Docebo is positioned for continued growth in the future. The company’s strategic initiatives and increased usage of digital learning solutions contribute to its long-term growth potential, making it an attractive investment opportunity despite recent stock price fluctuations.
