The S&P/ASX 200 Index (ASX: XJO) has rebounded strongly since the 'Liberation Day' dip. However, one ASX 200 company has been a standout performer, surging nearly 60% in less than 2 months.
That company is Pro Medicus Ltd (ASX: PME).
On 7 April, the ASX 200 healthcare stock traded at $177. Since then, it has rebounded to nearly $280
That represents a staggering 58% gain since its April low. For comparison, the ASX 200 Index is up just 14% over the same timeframe.
Other strong ASX 200 performers include Wisetech Global Ltd (ASX: WTC) and Mineral Resources (ASX: MIN). These two ASX 200 stocks are up 40% and 41% respectively since 7 April.
For recent Pro Medicus investors, buying in the recent dip has paid off strongly.
A $10,000 investment in Pro Medicus on 7 April is now worth approximately $15,800. That's a $5,800 capital gain in less than two months.
The company has rebounded so strongly that it now sits just below its all-time high of $299.
Image source: Getty Images
Can Pro Medicus shares reach a new all-time high?
Pro Medicus is one of the highest quality ASX 200 growth companies.
Its flagship Visage 7 software is a market leader in terms of speed, functionality, and scalability. It reportedly makes the diagnostic process up to 50% more efficient, while also improving the accuracy of diagnosis. That's especially appealing in the highly litigious United States, which is its biggest market.
It's easy to see why Pro Medicus has gained traction and boasts a 100% renewal rate.
The company also benefits from several long-term tailwinds. These include an ageing population, the increased use of diagnostic imaging, cloud adoption, larger data sets, and remote access.
Its potential addressable market is also large, allowing for further growth. According to Fortune Business Insights, the US diagnostic images services market is expected to grow from US$130.38 billion in 2023 to US$206.84 billion by 2030. Last year, Pro Medicus estimated it had captured just 7% of this market, meaning there's plenty more room to run.
These factors have allowed the business to be one of the top ASX 200 performers over the past 5 years. Pro Medicus shares are up 868% since 27 May 2020. The company also pays investors a small dividend. Currently, its dividend yield is 0.18%.
However, at a price-to-earnings (PE) ratio of 300, Pro Medicus shares are hardly cheap. Although Pro Medicus has a lot going for it, chances are that the 60% share price growth will be reached at a much slower pace.
