After a weak beginning this month, the Canadian equity markets have bounced back strongly, with the S&P/TSX Composite Index hitting a new all-time high on August 23. The chairman of the Federal Reserve of the United States has recently indicated that interest rate cuts are on the horizon, raising investors' confidence and driving the equity markets higher. Amid improving optimism, I believe the following three growth stocks under $20 could deliver superior returns.

WELL Health Technologies

WELL Health Technologies (TSX:WELL) is a digital healthcare company that helps healthcare practitioners deliver positive patient outcomes. In the second quarter, the company signed a five-year agreement with Microsoft to enhance digital healthcare across North America. The partnership would strengthen WELL Health's cloud infrastructure, optimize expenses, and tighten data security to expand healthcare solutions.

Further, it continued expansion by acquiring 10 clinics operated by Shoppers Drug Mart. It has substantially invested in artificial intelligence (AI) to develop innovative products. These initiatives, along with its expanding customer base and various cost-cutting initiatives, could boost its financials in the coming quarters.

Meanwhile, WELL Health's management has raised its 2024 guidance after posting its second-quarter earnings earlier this month. The management projects its top line to come between $970 million and $990 million, with the midpoint representing a 26.3% increase from the previous year. The midpoint of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) guidance represents a 12.4% growth from the previous year. Despite these healthy growth prospects, the company trades at an attractive NTM (next-12-month) price-to-sales multiple of 1.1, making it an attractive buy.

Savaria

Savaria (TSX:SIS) provides accessibility solutions with manufacturing facilities spread across North America, Asia, and Europe and a worldwide dealer network. The company's top line grew by 5.1% in the first six months amid solid organic growth and favourable currency translation. Its gross margins expanded by 290 basis points to 33.9%. Besides, its adjusted EBITDA and adjusted EPS (earnings per share) have increased by 26.7% and 16.1%, respectively. Its solid performances have boosted investors' confidence, driving its stock price 33.7% higher.

Meanwhile, I expect the demand for accessibility solutions is rising amid the aging population and increasing income levels. The company has adopted a multi-year Savaria One initiative, which it expects to unlock its full potential. Moreover, the company's management expects its top line to reach $1 billion next year, representing a 19.5% increase from 2023. Its adjusted EBITDA margin could touch 20%, a substantial improvement from 15.5% in 2023. So, its growth initiatives look healthy. It also pays monthly dividends, with a forward yield of 2.61%, and trades at an attractive NTM price-to-earnings multiple of 18.8, making it an ideal long-term buy.

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD), which provides commerce solutions to businesses worldwide, is my third pick. Earlier this month, it reported an impressive first-quarter performance for fiscal 2025, with its topline growing by 27%. New customer wins and average revenue per user expansion by 31% drove its sales. Besides, it reported an adjusted EBITDA of $10.2 million, representing a substantial improvement from a loss of $7 million in the previous year's quarter. With its cash and cash equivalents at $673.9 million, it is well-positioned to fund its growth initiatives.

Further, the company continues to launch innovative products and expand its unified POS (point of sales) and payments platform, which could boost its financials in the coming quarters. For this fiscal year, Lightspeed Commerce's management projects its top line to grow by 20% while its adjusted EBITDA will be over $45 million. Despite its solid first-quarter performance and healthy growth prospects, the company is trading at a 37.8% discount compared to its 52-week high. Its valuation looks cheap, with its NTM price-to-sales multiple at 1.7, making it attractive for long-term investors.