Up 784% in 5 years, why this ASX 200 healthcare share has a 'clear pathway' for growth in 2024

The ASX 200 stock has been a standout performer within the healthcare sector.

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S&P/ASX 200 Index (ASX: XJO) healthcare share Pro Medicus Ltd (ASX: PME) is marching higher today.

Again.

Shares in the health imaging company closed yesterday trading for $88.59. In morning trade on Friday, shares are swapping hands for $89.21, up 0.7%.

That puts the Pro Medicus share price up a whopping 784% in five years. And in 2023 alone, the stock has surged 64%.

So, with that kind of blistering growth behind it, can the Pro Medicus share price continue to reward investors?

According to Michelle Lopez, the head of Australian equities at Pie Funds Management, it very much could.

ASX 200 healthcare share tipped for 30% earnings growth

According to Lopez (courtesy of The Australian Financial Review), the growth outlook for Pro Medicus looks strong in 2024 and beyond.

She labels the ASX 200 healthcare share a "high-quality, high-growth, long-term compounder".

What kind of growth are we talking about?

"It has a very strong earnings trajectory on a clear pathway to 30% plus per annum growth over the next three years," Lopez says.

What happened with Pro Medicus shares in FY 2023?

Looking at the financials, the ASX 200 healthcare share posted some strong growth metrics when it reported the full-year FY 2023 results.

Having won a number of sizeable contracts during the year, Pro Medicus saw revenue increase 33.6% year on year to $125 million.

Net profit after tax (NPAT) increased by 36.5% to $61 million, which helped drive a 36.4% boost in the full-year dividend to 30 cents per share. While Pro Medicus shares trade on a fairly low 0.3% trailing yield, it's always good to see those payouts rising.

Also potentially supporting future growth, Pro Medicus is actively investigating AI to enhance its products. The company recruited two people dedicated to AI in FY 2023.

Commenting on the evolving role of technology that could fuel future growth for the ASX 200 healthcare share's business, CEO Sam Hupert said:

Cloud-based systems can be implemented much faster than those that require hardware to be bought and installed. This, coupled with our highly modular approach, continues to provide unparalleled flexibility and scalability.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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