The chance for investors has only improved significantly throughout 2022 as stock prices have continued to decline. Growth companies, in particular, have had the most significant selloffs, making them some of the most significant investments to make in October when prices are down.

The value of stocks can decrease so drastically for a few significant reasons. First, risk naturally increases as the economic climate deteriorates, which has an effect on stock valuation. The economic climate is also driving many companies’ future profit expectations to decline, which has also impacted the stock price.

Although short-term ambiguity can have an impact on stock prices, if you can find high-quality stocks that you think will be able to continue operating well and growing for years to come, long after this economic environment, these will be some of the best growth stocks to buy in October and hold for years.

So, if you’re searching for cheap stocks right now, these are the top three Canadian growth companies.

A top Canadian retail stock

In the recent selloff, one of the hottest Canadian growth stocks, which has swiftly turned into a buy, is Aritzia (TSX:ATZ).

Women’s apparel company Aritzia has had a recent surge in popularity as it quickly increases the number of its stores across North America. Because of its marketing strategy, which promotes its products to consumers by using influencers, it has experienced a significant rise in popularity.

However, Aritzia’s e-commerce platform, which continues to support the company’s sales growth, is another factor in the company’s success.

Even though the pandemic had some negative effects on the stock since some of its stores had to close, it nevertheless managed to flourish during the years of the pandemic and hasn’t looked back. In fact, its trailing 12-month sales have climbed by more than 70% in the ten quarters since the end of 2019. Additionally, at that time, it increased earnings per share by nearly 90%.

Aritzia is therefore one of the top Canadian growth stocks to buy in October even though it has fallen from its highs.

One of the best Canadian tech stocks

Another growth stock to consider buying in this environment is Lightspeed Commerce (TSX:LSPD)(NYSE:LSPD). A big opportunity has arisen as a result of the stock’s decline of more than 82% in the past year alone, especially given Lightspeed’s business is expanding.

This week, the stock just hosted its investor day, at which management emphasized the stock’s strong upward potential. Management began by pointing out that Lightspeed’s varied business and several partnerships had been crucial in mitigating the effects of inflation.

Moreover, it thinks that as it expands, it can keep finding cost savings to raise margins. Lightspeed is confident that its earnings before interest, taxes, depreciation, and depreciation (EBITDA) can achieve break-even by 2024 as a result of this.

Also, Lightspeed has about $900 million in cash on hand, which not only boosts its adaptability but also might enable the stock to undertake value-adding acquisitions in this climate.

So, if you’re looking to find high-quality growth stocks that you can buy in October, Lightspeed is worth consideration.

One of the best micro-cap growth stocks to buy in October

In addition to Aritzia and Lightspeed, another of the best growth stocks to buy in Canada is Sangoma Technologies (TSX:STC), a provider of cloud-based communication solutions for businesses.

With many workers at Sangoma doing remote work, the epidemic was a huge benefit. However, it has also shows many businesses how successfully employing remote workers can be done, and as the level of technology in this field rises, businesses like Sangoma have wide lanes for expansion.

Sangoma expects its sales to increase by about 25% and its EBITDA to reach about $50 million in its fiscal 2023 forecast.

This demonstrates how well Sangoma has been doing recently, despite the current economic climate. The stock’s enterprise value (EV), which is currently a little over $300 million, also has a forward EV-to-EBITDA ratio of only six times.

Therefore, if you’re looking for high-potential growth stocks to buy while they’re cheap in October, this lesser-known Canadian stock is one of the best to consider.