Written by Rajiv Nanjapla at The Motley Fool Canada

After a challenging three months, the Canadian equity markets have started November strongly, with the S&P/TSX Composite Index rising by 4.1%. The Federal Reserve of the United States has kept interest rates unchanged despite solid GDP (gross domestic product) numbers, thus raising investors’ confidence and driving the equity markets. So, with the improvement in investors’ sentiments, here are three deeply discounted Canadian stocks you can buy to earn superior returns.

Nuvei

Last week, Nuvei (TSX:NVEI) reported its third-quarter performance, with its revenue growing by 55% to $304.9 million. Its total volume increased by 72% to $48.2 billion, with e-commerce representing 88% of its total volume. The company’s management has credited new customer acquisitions, wallet share expansion, new product feature additions, and geographic expansion for its growth.

Its global commerce, business-to-business (B2B), government, and independent software vendor segments witnessed solid growth, while the small- and medium-sized businesses showed a decline. Despite the strong top-line growth, the company incurred a net loss of $18.1 million compared to net profits of $13 million in the previous year’s quarter. However, removing special items, its adjusted net income stood at $56.8 million, representing a 9% decline from $62.4 million in the previous year’s quarter.

Despite the net losses, the fintech company’s stock price has increased by 18% since reporting its third-quarter earnings. The expansion of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) by 40 basis points to 36.3% and the raising of its 2023 guidance drove its stock price. Despite the recent surge, the company still trades over 55% lower than its 52-week high. Also, its NTM (next 12-month) price-to-earnings multiple stands at 9.2, making it an attractive buy.

Magna International

Second on my list is Magna International (TSX:MG), which reported a solid third-quarter performance earlier this month. Its revenue grew 15% to $10.7 billion amid new program launches and global light vehicle production growth. Production in North America and Europe grew by 7% and 14%, respectively. However, China’s production declined by 2% during the quarter.

Amid its top-line growth, operational excellence, and cost initiatives, the automotive part manufacturer grew its net earnings by 36.3% to $394 million. Meanwhile, its adjusted EPS (earnings per share) stood at $1.46, representing a 32.7% increase from the previous year’s quarter. Also, the company generated $797 million of cash from its operating activities. Moreover, the company’s management also raised its guidance for this year, which has boosted investors’ confidence, thus driving its stock price. Magna International is trading 7.5% higher for this month.