Up 1,277% in a year, why 4DMedical shares are tipped for more outsized gains

A leading analyst forecasts more outperformance from 4DMedical's rocketing shares. But why?

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

4DMedical Ltd (ASX: 4DX) shares are charging higher today.

Again.

Shares in the S&P/ASX 200 Index (ASX: XJO) respiratory imaging technology company closed on Friday trading for $3.97. In early afternoon trade on Tuesday, with the ASX having been shuttered on Monday for the King's Holiday, shares are swapping hands for $4.13 apiece, up 4%.

For some context, the ASX 200 is down 0.4% at this same time.

Taking a step back, 4D Medical shares are now up an eye-popping 1,276.7% over the past 12 months, compared to a 1.4% gain delivered by the benchmark index.

And it was thanks to this rapid share price gain, and the resulting market cap surge, that 4DMedical stock was included in the ASX 200 back on 20 April.

To put the past year's gains into better perspective, if you'd invested $10,000 in the ASX 200 healthcare stock 12 months ago, you'd be sitting on $137,667 today.

And looking ahead, MPC Markets' Mark Gardner forecasts more outperformance to come (courtesy of The Bull).

Here's why.

A businessman points to an arrow going up on a graph, indicating a share price rise for an ASX company.

Image source: Getty Images

Should I buy 4DMedical shares today?

"4DMedical develops advanced respiratory imaging technology," Gardner explained.

Commenting on his bullish outlook for the ASX 200 healthcare stock, he said:

The company has attracted attention after securing commercial validation through relationships with GSK, Mayo Clinic and Philips, which support the case for broader adoption of its CT:VQ technology in the United States and other markets.

Sounding a word of caution, Gardner noted, "The shares remain volatile, and the business is still in the early stages of converting partnerships into material revenue."

Indeed, while 4DMedical shares are up a stellar 1,277% in 12 months, shares are down 9% in 2026. And that comes after they hit an all-time closing high of $6.80 each on 10 April.

But taking a long-term view, Gardner believes the company is still undervalued at current levels.

He concluded:

However, the company has a stronger funding position after its recent capital raise and a clearer commercial pathway than in prior years. We believe the market is undervaluing the longer-term opportunity at recent levels.

What's the latest from the ASX 200 healthcare stock?

4DMedical shares closed up 18.9% on 29 May after the company announced that it had inked a commercial agreement with US-based SimonMed Imaging for the immediate clinical deployment of its CT:VQ technology.

Commenting on the agreement on the day, 4DMedical CEO and founder Andreas Fouras said:

SimonMed is one of the largest and most influential outpatient imaging providers in the United States. Their decision to adopt CT:VQ, moving directly to commercial deployment, is a major milestone for 4DMedical and a strong validation of both our technology and our clinical value.

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 recommended GSK. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A young African mine worker is standing with a smile in front of a large haul dump truck wearing his personal protective wear.
Broker Notes

This ASX gold stock could jump by 45%, brokers say

This company has big expansion plans.

Read more »

Engineer looking at mining trucks at a mine site.
Broker Notes

What are the top picks in the ASX lithium sector right now?

A recent pullback in share prices could be creating opportunities.

Read more »

A bland looking man in a brown suit opens his jacket to reveal a red and gold superhero dollar symbol on his chest.
Broker Notes

Macquarie tips three ASX finance companies to return better than 30%

These finance stocks could be worth a look.

Read more »

A miner shakes hands with a businessman or banker inside an underground mine setting.
Broker Notes

A miner and an energy company to buy according to Macquarie

The broker is bullish on these two companies.

Read more »

A businessman holds his hand to his wide-open yawning mouth as he closes his eyes and makes a funny face while he gives a wholehearted yawn.
Broker Notes

How much could ResMed shares rise according to Morgans?

Current share price weakness could be an opportunity.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

2 ASX mining project developers which could more than triple in value

These companies are progressing their projects well.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Buy, hold, sell: Pro Medicus, Worley, and ResMed shares

Morgans has given its view on these stocks.

Read more »

Worker on a laptop at an oil and gas pipeline.
Broker Notes

Morgans just placed a fresh buy rating on this ASX utilities stock 

This utilities stock appears oversold.

Read more »