Last week, the U.S. Labor Department reported that unemployment insurance claims rose 14,000 to 249,000 in the July 27-ending week. It was the highest since August 2023. Further, the ISM manufacturing index, which measures factory activity in the United States, stood at 46.8%, lower than analysts’ expectations. These weak numbers raised recession fears among investors, leading to a 3.8% decline in the S&P/TSX Composite Index over the last two trading days. Despite the fall, the index is up 6.1% this year and down 4.2% from its 52-week high.
However, the following three tech stocks have lost over 30% compared to their 52-week highs. Given their growth prospects and discounted valuation, I believe these three stocks are enticing buys at these levels.
BlackBerry
BlackBerry (TSX:BB) provides governments and businesses with intelligent security software and solutions. Amid lower-than-expected growth in the IoT (Internet of Things) segment, the company has been under pressure over the last 12 months, losing around 60% of its stock value. Amid the correction, its NTM (next 12 months) price-to-sales multiple has declined to 2.1, with its price-to-book multiple at 1.7.
Meanwhile, BlackBerry reported impressive first-quarter earnings for fiscal 2025, which ended on May 31, outperforming management’s guidance in both the IoT and cybersecurity segments. Further, the increased usage of ADAS (advanced driving assistance systems) and digital cockpits has increased the company’s penetration in the automotive sector. Besides, its QNX platform is also strengthening its presence in the general embedded market, creating multi-year growth potential.
Further, the company’s new artificial intelligence-powered products have improved customer satisfaction levels in the cybersecurity segment, leading to higher renewal rates. Considering its multiple growth drivers, I believe BlackBerry is an attractive buy at these levels.
Docebo
Another tech stock that has witnessed substantial selling is Docebo (TSX:DCBO). The company, which offers an end-to-end learning platform to help enterprises provide personalized learning across all their audiences, has lost around 34% of its stock value compared to its 52-week high. Recession fears and the expectation of lower IT spending amid a challenging macro environment have weighed on its stock price.
Meanwhile, the growing adoption of digital learning solutions in academic and corporate has created multi-year growth potential for Docebo. Further, the company’s acquisition of Edugo.AI and partnership with Google has strengthened its AI (artificial intelligence) capabilities. Moreover, its expanding blue-chip customer base, growing average contract value, and multi-year client agreements stabilize its financials. So, I believe investors with a longer horizon could start accumulating the stock to earn multi-fold returns.
Lightspeed Commerce
Third on my list would be Lightspeed Commerce (TSX:LSPD), which offers omnichannel commerce solutions to customers that could help engage customers, manage operations, accept payments, and scale their businesses. Although the company posted healthy first-quarter earnings for fiscal 2025, which ended on June 30, it has lost over 10% of its stock value since its earnings announcement amid broader weakness. Further, it is down 42% compared to its 52-week high, with its NTM price-to-sales and price-to-book multiple falling to 1.6 and 0.8, respectively.
Supported by its new product launches, unified POS (point of sales) and payments offering, and high GTV (gross transaction value) customer adoption, the company witnessed a 31% increase in its average revenue per customer. Further, it had several customer wins during the quarter, boosting its sales. During the quarter, its revenue grew by 27% while its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) improved from a loss of $7 million to $10.2 million in profits. Amid its stellar first-quarter performance, the company’s management raised its fiscal 2025 EBITDA guidance by $5 million to $45 million.
Further, the long-term growth potential of Lightspeed Commerce looks healthy with the growing adoption of the omnichannel commerce model. So, I believe Lightspeed Commerce would be an excellent buy at these levels.
