There is no getting around the fact that ASX growth shares have performed terribly this year.
However, over the longer term, as the market works its way through entire economic cycles, a business can grow sufficiently to eventually put investors ahead.
Some ASX shares involved in health technology are prime examples.
Those companies have a foot each in two sectors that have been hammered in 2022. But a long-term perspective might prove fruitful, as is the case with these two stocks:
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Long-term growth and short-term defence
Imaging software provider Pro Medicus Limited (ASX: PME) has seen its shares dive 11.5% year to date.
However, over the past five years, its shareholders have been celebrating a remarkable 727% rise in their investments, excluding dividends.
For Medallion Financial Group private client advisor Stuart Bromley, the stock is both a long-term growth story and a short-term defensive holding.
"We believe future growth justifies a relatively high price-earnings ratio," Bromley told The Bull.
"Existing clients are renewing contracts, providing Pro Medicus with defensive, long-term revenues."
In recommending the ASX share as a buy, Bromley noted the 2022 financial year saw underlying revenue increase 38% to $93.5 million.
"This medical imaging technology business is taking impressive market share, primarily at the top end of the big and lucrative US market."
Admittedly other professionals are more lukewarm on Pro Medicus than Bromley. According to CMC Markets, eight out of 13 analysts currently rate the health tech stock as a hold.
New CEO from big pharma
The Polynovo Ltd (ASX: PNV) share price has plunged more than 8% since mid-August.
But, similar to Pro Medicus, it has rewarded investors handsomely over the long term. The ASX share has rocketed up 456% over the past five years.
"The company provides dermal regeneration solutions via its NovoSorb biodegradable polymer technology," said Bromley.
"The company posted unaudited record first quarter sales of $12.5 million in fiscal year 2023."
For Bromley, a big catalyst and endorsement for Polynovo shares came a few months ago.
"We're encouraged that Swami Raote, a former US Johnson & Johnson (NYSE: JNJ) veteran of 30 years, was appointed chief executive in July," he said.
"Raote brings a lot of connections to Polynovo."
The advisor admitted Polynovo has had a long run as a cash-burning business, but he can see the light at the end of the tunnel.
"Breakeven is now closer for this business, with a net loss after tax of just $1.19 million in fiscal year 2022."
Bromley's peers are more convinced about this ASX share, with four out of five analysts currently surveyed on CMC Markets recommending Polynovo as a strong buy.
