APPLE VISION PRO AND PRO MEDICUS

The Healthcare Sector has benefited from technological advances over the years. In 1936 the pacemaker came out, by 1943 the first dialysis machine was on offer. In more recent times, the Covid vaccine. What is next?

It could possibly be Apple’s virtual reality headset called the Vision Pro. The virtual reality headset will allow the wearer to view media/images in a virtual space. Apple has only conducted sales in the US to begin with, selling over 200,000 units on pre-order, retailing at $3,499 USD per unit. Apple will officially sell the Vision Pro in Australia around July 2024.

The new technology will benefit several companies, including one in Australia, Pro Medicus (PME.AX). Visage Imaging (a wholly owned subsidiary of PME.AX) has developed Visage Ease VP™, which works with the Vision Pro Headset to allow users to review 2D/3D medical imaging to better treat cancer patients. Furthermore, the headsets along with Visage Ease VP™ are proving very useful in training medical staff.  Theory in essence comes close to reality via the virtual reality headsets running Visage Ease VP™. PME.AX has positioned itself well to benefit from virtual reality in the medical field.

We last wrote about PME.AX in our weekly Essay on 20 October 2023, entitled: The Rise of Pro Medicus. The price when our weekly Essay was published on 20 October 2023 was $78.16 AUD. Roll forward 3 months and the price is now $108.63 as of 5 February 2024.

Let’s look closely at the graph for Pro Medicus as of 5 February 2024:

The 12-month leading forecast of Earnings Per Share (EPS) is represented by the blue area graph, note how EPS has continued to track higher and higher. Sales are represented by the green area graph.  Sales have doubled since 2020. The red line represents Net Profit Margin, that being, for every $1 in sales, what does PME.AX make as profit? With rising sales, and a steady NPM of a staggering 60 percent, it is of no surprise to see why EPS is surging.

In the months ahead, we will use our VectorVest stock analysis and portfolio management tools to follow PME.AX, sharing our views with our subscribers.

PS – Full disclosure: Russell Markham holds shares in PME.AX.

 

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