After climbing by over 17% so far in 2024, the TSX Composite Index is currently at 24,566 — not far from its all-time highs. Investors' growing expectations that recent interest rate cuts could boost economic growth and corporate earnings in the U.S. and Canada are driving this optimism. This is one of the key reasons why the Canadian market benchmark has risen 2.4% so far in October after witnessing a 9.7% rally in the third quarter.

While the recent market rally has already provided a solid boost to many stocks, there are still some growth stocks with significant upside potential that look undervalued. Investors looking to benefit from the ongoing momentum should keep an eye on such TSX stocks, which may witness strong gains as interest rates decline and economic conditions improve. In this article, I'll highlight two of the top TSX growth stocks that could benefit from the current market environment.

Lightspeed stock

Despite the broader market rally, Lightspeed Commerce (TSX:LSPD) stock has tanked by 25.4% year to date to currently trade at $20.75 per share with a market cap of $3.2 billion. This Montréal headquartered company primarily focuses on providing a robust suite of cloud-based software solutions that support small- and medium-sized businesses in optimizing operations.

Although LSPD stock has underperformed the broader market by a wide margin so far this year, its financial growth trends remained strong. In the first quarter (ended in June) of its fiscal year 2025, the Canadian tech firm's total revenue climbed by 27.3% YoY (year over year) to US$266.1 million with the help of around a 44% jump in its transaction-based sales.

For the quarter, the company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) stood at US$10.2 million, exceeding its guidance of US$7 million. However, the company's gross profit margin slightly declined last quarter with pressure from high payment adoption costs, which could be a primary reason for hurting investors' sentiments.

Amid increasing global adoption of its payments platform, Lightspeed's focus on scaling software sales and boosting subscription revenue brightens its long-term growth outlook, making it an attractive growth stock to buy on the TSX today.

BlackBerry stock

An attractive TSX growth stock that could also witness a strong rally in the coming years is BlackBerry (TSX:BB), which has also underperformed the Canadian market this year. The Waterloo-based enterprise software company currently has a market cap of $2 billion as its stock trades at $3.35 per share with nearly 29% year-to-date losses.

While BlackBerry has struggled to gain the attention of bullish investors of late, its recent financial performance looks promising. In the second quarter (ended in August) of its fiscal year 2025, the Canadian software firm's revenue surged by 9.8% from a year ago to US$145 million with the help of a double-digit YoY increase in sales for IoT (Internet of Things) and cybersecurity segments. The company also pleasantly surprised investors and analysts by achieving breakeven adjusted EBITDA last quarter, marking an important step on its path to profitability.

Interestingly, BlackBerry plans to separate its cybersecurity and IoT segments into standalone business units, which could enhance its operational focus and unlock additional growth potential. Moreover, consistently growing demand for its advanced technological solutions for the automotive industry and artificial intelligence-based cybersecurity software could accelerate its financial growth in the years to come.