3 Top Stocks to Buy in October for Value-Hunting Canadians

Given their healthy long-term growth potential and discounted stock prices, I am bullish on these three TSX stocks.

| More on:
woman analyze data

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Although the Consumer Price Index of the United States rose higher than analysts’ forecast in September, the S&P/TSX Composite Index has continued its upward momentum and hit a new all-time high yesterday. The Index is trading 16% higher this year. However, the following three TSX stocks are trading at a considerable discount compared to their 52-week high, making them enticing buys.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) has witnessed healthy buying over the last few months, with its stock price rising over 30% from its April lows. Its solid quarterly performances, the raising of 2024 guidance, and improvement in broader equity markets drove WELL’s stock price. Despite the healthy buying, the company trades at around a 54% discount compared to its 2021 highs. Also, its valuation looks attractive, with its NTM (next 12 months) price-to-sales and price-to-book multiples at 1.1 and 1.2, respectively.

Created with Highcharts 11.4.3Well Health Technologies PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Besides, the growing adoption of telehealthcare services, digitization of patient records, and increased usage of software services in the healthcare sector have expanded the addressable market for WELL Health. The company is continuing to expand its footprint through acquisitions. Recently, it has acquired 10 clinics in British Columbia and Ontario from Shoppers Drug Mart and three primary care clinics in British Columbia. Further, it is working on acquiring 50 more clinics. Moreover, the company is developing artificial intelligence (AI)-powered products that can help strengthen its market share. Considering all these factors, I expect WELL Health to deliver oversized returns over the next three years.

Docebo

Docebo (TSX:DCBO) offers organizations a highly customizable learning platform to scale their business by providing personalized learning. In August, the company reported impressive second-quarter performance, with its top line growing 22%. The addition of 307 customers over the last four quarters and an increase of 9.7% in its average contract value drove its revenue. Besides, its adjusted EPS increased by 85.7%, while its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin expanded from 7% to 15%.

Created with Highcharts 11.4.3Docebo PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Supported by its solid Q2 performance, the company’s stock price has increased by 19.3%. However, it still trades around 18% lower than its March highs, thus offering opportune buying opportunities for long-term investors. Meanwhile, analysts are projecting that the global LMS (learning management system) market will grow in double digits for the rest of this decade. Amid the expanding addressable market, the company continues to develop innovative features and make strategic partnerships, which could boost its financials in the coming years. Besides, over 80% of its customers have signed multi-year contracts, thus providing financial stability.

Lightspeed Commerce

Amid rumours of a potential sale, Lightspeed Commerce (TSX:LSPD) has witnessed healthy buying over the last few weeks, with its stock price rising by over 35% compared to last month’s low. Despite the recent increase, the company still trades at a 23% discount to its 52-week high. Besides, its valuation looks reasonable, with its NTM price-to-sales multiple at 2.1.

Created with Highcharts 11.4.3Lightspeed Commerce PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The growing popularity of the omnichannel selling model has increased Lightspeed Commerce’s addressable market. Meanwhile, its innovative AI-powered products have expanded its retail, hospitality, and golf business client base. Further, the company’s unified POS (point-of-sales) and payments platform has increased the adoption of its payment platform. Along with these growth initiatives, the company is focused on improving its profitability and has undertaken several cost-cutting initiatives. Considering all these factors, I believe Lightspeed Commerce would be an excellent long-term buy.  

Should you invest $1,000 in Canadian Natural Resources right now?

Before you buy stock in Canadian Natural Resources, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Canadian Natural Resources wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Docebo and Lightspeed Commerce. The Motley Fool has a disclosure policy.

If You Thought Apple and Microsoft Were Big, You Need to Read This.

The steel industry produced the world's first $1 billion company in 1901, and it wasn't until 117 years later that technology giant Apple became the first-ever company to reach a $1 trillion valuation.

But what if I told you artificial intelligence (AI) is about to accelerate the pace of value creation? AI has the potential to produce several trillion-dollar companies in the future, and The Motley Fool is watching one very closely right now.

Don't fumble this potential wealth-building opportunity by navigating it alone. The Motley Fool has a proven track record of picking revolutionary growth stocks early, from Netflix to Amazon, so become a premium member today.

See the 'AI Supercycle' Stock

More on Investing

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Investing

The Best Canadian Stocks to Buy and Hold Forever in a TFSA

For investors looking to add to their TFSA, here are two top Canadian growth stocks that may be worth buying…

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Investing

2 Brilliant Canadian Stocks to Buy Now and Hold for the Long Term

A small-cap and a large-cap Canadian tech stock can both be terrific holdings to consider for your self-directed investment portfolio,…

Read more »

calculate and analyze stock
Investing

Top Canadian Stocks to Buy Right Now With $7,000

Given their solid underlying businesses, consistent performances, and healthy growth prospects, the following three Canadian stocks are ideal additions to…

Read more »

Paper Canadian currency of various denominations
Dividend Stocks

6% Dividend Yield? Buy This Top-Notch Dividend Stock in Bulk!

This top-notch dividend stock offers a high and sustainable yield of about 6%, enabling you to generate resilient passive income.

Read more »

data analyze research
Dividend Stocks

2 High-Dividend TSX Stocks to Buy for Increasing Payouts

For big dividends with increasing payouts, look more closely at TD and CNQ today!

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

Better Dividend Stock: TD vs. BCE

TSX dividend stocks such as TD and BCE offer shareholders a tasty dividend yield. But which blue-chip stock is a…

Read more »

Make a choice, path to success, sign
Dividend Stocks

Magna International: Buy, Sell, or Hold in 2025?

Magna International stock: A 5.5% dividend yield and a cheap 8.1 forward P/E – Can the automotive sector stock outrun…

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

Best Stock to Buy Right Now: Barrick Gold vs Agnico Eagle?

Agnico-Eagle Mines stock continues to soar off of strong results while Barrick Gold grapples with political troubles in its African…

Read more »