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2 Cheap Growth Stocks That Have Soared +30% in 2018

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Investing in growth stocks can be hard to do if you’re not just looking at established, big tech stocks. Finding new and growing stocks that have a lot of upside is a challenge, especially since it’s hard to tell if their trajectory will last or if the stock will simply fizzle out.

Below, I’m going to have a look at two stocks that could be good options for growth investors that are trading under $5 a share and that have risen more than 30% year to date.

Viemed Healthcare Inc. (TSX:VMD) is valued at less than $5 a share and has only been listed on the market since late December. However, since then, the share price has risen by more than 50%, and because of a decline just before the start of the year, year-to-date returns are actually over 80%.

The U.S.-based company aims to help patients with respiratory diseases through a wide variety of products, including ventilators, cough assists, and many others. As the U.S. population ages and as more baby boomers reach retirement age, there will likely be more of a demand for these products, which could be lead to significant growth for the company.

Viemed is still in its early-growth stages and has a lot of potential upside. In its most recent fiscal year, its sales were up more than 50% and it was able to net a profit margin of over 17%. The results are still early, but given the growth prospects in the industry and how Viemed has done so far, this could be a great stock to pick up today.

Neptune Technologies & Bioressources Inc. (TSX:NEPT)(NASDAQ:NEPT) has risen 30% in price so far this year, as the wellness company got a big boost back in June when it was announced that it reached an agreement with Canopy Growth Corp. (TSX:WEED)(NYSE:CGC) to help with the extraction of cannabis.

The company has experience with producing cannabis soft gels and could help Canopy Growth advance its medicinal products — and perhaps pave the way for edibles down the road, which could be a terrific opportunity for both companies.

Neptune’s experience with oils, chewable soft gels and even pet supplements gives the company many opportunities to help the cannabis industry grow. The company still has a strong business in creating supplements for companies, but clearly there is a lot of opportunity in cannabis that may very well eclipse that, especially since Neptune will partner with Canopy Growth, an industry leader.

Neptune can offer investors a unique path to invest in cannabis through a safer, more established company. Unlike many marijuana companies, Neptune has been able to turn a profit, with the company finishing in the black in three of the past five quarters.

While its sales have not been terribly strong over the years, the potential to piggyback off the cannabis industry could change all of that very quickly. The growth potential in the medical marijuana industry makes this stock a very appealing buy, and the edible market, once approved, will also open many more opportunities for Neptune.

At around $4 a share, Neptune is an inexpensive stock to own today that could generate significant returns for you in the long term.

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Fool contributor David Jagielski has no position in any of the stocks mentioned.

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