ASX healthcare stocks have had a tough time over the past year, after a broad based index-wide sell off drove many investors to sell up their shares.
A weaker US dollar, higher interest rates, and cost of living pressures all combined to make strong headwinds for the sector.
For context, the S&P/ASX 200 Health Care Index (ASX: XHJ) has now shed around 44% of its value over the past 12 months, at the time of writing.
But there is one ASX healthcare stock which is bucking the trend.
The 4DMedical Ltd (ASX: 4DX) share price has rocketed higher over the past 12 months and is currently the best-performing stock on the S&P/ASX 200 Index (ASX: XJO).
The share price spiked to an all-time high of $6.80 a piece in April this year. This was when the company joined the ASX 200 Index.
But the shares quickly shed around 50% after a broad sell-off of ASX 200 healthcare stocks drove many shares across the sector to low levels. It's also likely that many investors rushed to take their gains off the table after an incredible run-up.
At the time of writing, the shares are down around 2% and are changing hands for $3.21 each.
Today's dip means the shares are now down around 29% for the year-to-date. But the decline has barely made a dent in gains made over the past 12 months. For the year-to-date, 4DMedical shares are up an enormous 1,242%.
Image source: Getty Images
So, if I'd invested $5,000 in 4D Medical shares 12 months ago, how much would it be worth right now?
This time last year, the ASX healthcare stock was trading around 24 cents a piece. Today they're changing hands for $3.21 each.
That 1,242% increase means a $5,000 investment 12 months ago would be worth $67,100 today!
Can the ASX healthcare shares keep climbing higher?
Since spiking to an all-time high in April, 4DMedical shares have shed around 52% of their value.
But it's worth remembering that the business is still very much in its growth phase. 4DMedical is working hard to expand its commercial footprint. Approvals have been secured in Canada and New Zealand. The company is now actively progressing commercialisation plans in Europe and Australia.
But it looks like we'll need more evidence that this growth can translate into actual earnings growth before investors will jump back on board.
Analysts are also divided about what will happen to the ASX healthcare stock next.
TradingView data shows three experts are split between strong buy, hold, and strong sell ratings.
Although, the majority agree there will be some element of upside ahead.
The $4.97 average target price implies a 55% upside at the time of writing. But some think the shares have the potential to jump 87% to $6 a piece over the next 12 months.
