The recent decrease in inflation numbers in the United States has alleviated concerns about a recession, leading to a positive trend in the Canadian equity markets. The S&P/TSX Composite Index has seen a 5% increase from its recent low and is currently trading 8.6% higher for the year, being just 1.9% below its all-time high.
Despite the overall improvement in investor confidence, some stocks on the TSX are experiencing pressure and have depreciated significantly from their 52-week highs. Two such stocks have seen a decline of over 25% in their stock value compared to their peak levels. However, considering their strong long-term growth potential and discounted stock prices, investors may want to consider accumulating these stocks to achieve superior returns in the future.
Lightspeed Commerce, a company providing commerce solutions to various businesses, recently reported impressive first-quarter earnings for fiscal 2025. The company showed a 27% increase in revenue compared to the same quarter in the previous year, driven by an increase in average revenue per user and new customer acquisitions. Despite a decline in net losses, Lightspeed Commerce’s adjusted net income witnessed a significant improvement, leading to an optimistic outlook for the company’s performance in the coming years.
Another stock trading at a considerable discount from its 52-week high is Docebo, a provider of corporate e-learning solutions to academic institutions and enterprises. Following a strong second-quarter performance with a 22% growth in revenue, the company has seen an increase in customer base and average contract value, reflecting positively on its financials. With a promising outlook and strategic initiatives in place, Docebo’s management has raised its revenue guidance for 2024, indicating further growth potential for the company.
Both Lightspeed Commerce and Docebo present compelling opportunities for investors due to their strong growth prospects and discounted stock prices, making them attractive options for long-term investment strategies.
