On Friday, the Canadian equity markets continued their uptrend, with the S&P/TSX Composite Index touching a new high amid solid September employment numbers in the United States. Meanwhile, the index is up over 15% for this year. Despite the uptrend, the following three TSX stocks are trading over 20% lower than their recent highs. Given their healthy growth prospects and solid underlying businesses, investors with longer investment horizons can accumulate these stocks to earn superior returns.

Lightspeed Commerce

Lightspeed Commerce (TSX:LSPD) has witnessed healthy buying over the last few weeks amid the rumours that the company was exploring potential sale opportunities. However, the company's management has stated that it is strategically reviewing its business and operations to enhance shareholders' value. Its stock price has increased by around 36% compared to last month's lows. Despite the recent increase, it trades around 23% lower than its 52-week high. Also, its valuation looks reasonable, with its NTM (next 12 months) price-to-sales multiple and price-to-book multiples at 2.1 and 1, respectively.

Meanwhile, the growth in the omnichannel selling model has expanded the addressable market for Lightspeed Commerce. Its unified POS and payments platform has resonated well with its customers, driving the adoption of the company's payment platform. Further, the company is developing innovative products that could continue to boost its customer base and average revenue per user. Along with these growth initiatives, the company is right-sizing its cost structure, which could improve its profitability in the coming quarters. So, I expect Lightspeed Commerce to deliver oversized returns in the next three years.

Magna International

Magna International (TSX:MG) is one of the largest automotive parts suppliers in the world. The company has lost over 30% of its stock value compared to its 52-week high amid supply chain issues and the weakness in the EV (electric vehicles) segment. Its NTM price-to-sales and price-to-book multiples have fallen to 0.3 and 1, respectively, which looks attractive.

Despite the near-term weakness, the long-term growth prospects of the EV segment look healthy amid the rising popularity of EVs due to growing concerns about air pollution. Further, the company continues to invest in high-growth sectors, such as powertrain electrification, battery enclosures, and active safety segments, which could boost its financials in the coming quarters. Besides, its focus on operational excellence and cost-cutting initiatives could improve its profitability. Moreover, the company has raised its dividends consistently for the last nine years at an annualized rate of 9%, with its forward yield currently at 4.7%. Considering all these factors, I believe MG would be an attractive buy at these levels.

BlackBerry

BlackBerry (TSX:BB) is another stock that trades at a considerable discount compared to its 52-week high. It has lost over 45% of its stock value amid weakness in the automotive sector, lower-than-expected growth in the IoT (Internet of Things) segment, and rising competition in the cybersecurity sector. Amid the sell-off, its NTM price-to-sales and price-to-book multiples have declined to 2.3 and 1.9, respectively.

Meanwhile, BlackBerry reported a stellar second-quarter performance for fiscal 2025. Its topline grew by 9.9% amid solid performance across the IoT and cybersecurity segments. The company has also achieved adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) and adjusted EPS (earnings per share) breakeven.

During the second quarter that ended on August 31, BlackBerry secured several design wins, especially in advanced driver assistance systems, which can contribute to its future revenue. The company has provided multiple proofs of concept to major OEMs (original equipment manufacturers) for IVY. However, management does not expect a material revenue contribution from IVY in the near term. Apart from the automotive sector, the IoT software maker is also strengthening its presence in general embedded systems.

In the cybersecurity segment, Blackberry continues to enhance the features of its products, leading to renewal and upsells. Given its multiple growth drivers and discounted stock price, I am bullish on BlackBerry.