This ASX healthcare stock has become one of the biggest success stories on the ASX.

4DMedical Ltd (ASX: 4DX) has surged 26% over the past five trading days, climbed 37% in the past month, and rocketed an astonishing 1,900% over the past year.

The remarkable rally has now caught the attention of one of the world’s largest investment firms. Let’s take a look at who it is and why it has purchased millions of 4DMedical shares.

Sizeable new stake

According to an ASX update released on Wednesday, JP Morgan Chase & Co. (NYSE: JPM) has acquired more than 31 million shares in 4DMedical, giving it a stake of approximately 6.3% in the company.

The move suggests the investment giant sees potential in a business that is rapidly emerging as a major player in healthcare imaging technology.

It’s not hard to see why investor interest in the ASX healthcare stock has surged.

Intersection AI and medical imaging

4DMedical develops advanced respiratory imaging technology that allows clinicians to assess lung function in ways traditional imaging methods cannot.

Its proprietary software and artificial intelligence tools create detailed functional images of the lungs, helping doctors diagnose and manage respiratory conditions more effectively.

As healthcare providers increasingly adopt AI-powered diagnostic tools, 4DMedical is positioning itself at the intersection of two powerful long-term growth trends: medical imaging and artificial intelligence.

Recent company announcements have only strengthened that investment case.

Expanding globally

One of the company’s biggest recent moves was its acquisition of Austrian AI imaging company Contextflow.

The deal immediately expands 4DMedical’s European footprint and adds lung cancer screening capabilities. It also provides access to existing reimbursement arrangements in Germany.

Management of the ASX healthcare stock believes the acquisition could increase the company’s addressable market by around 50%, significantly expanding its long-term growth opportunity.

For investors, it represents another step in transforming 4DMedical from an emerging Australian healthcare company into a global imaging technology business.

Making progress in the US

The company has also been gaining traction in the world’s largest healthcare market.

Recently, 4DMedical announced a major agreement with SimonMed. This is one of the largest outpatient imaging providers in the US, with more than 170 imaging centres.

The partnership supports the rollout of the company’s CT:VQ lung imaging technology. It provides access to a large network of healthcare providers and potential patients.

Earlier this month, management also launched its CLEAR clinical program targeting acute pulmonary embolism.

Importantly, the ASX healthcare stock believes this initiative could expand the US addressable market for CT:VQ to approximately US$3 billion. This highlights the scale of the opportunity if adoption continues to grow.

Raised expectations

Despite the excitement, investors should remember that expectations are now much higher than they were a year ago.

After a 1,900% gain, the market is increasingly focused on execution. The ASX healthcare stock must continue converting clinical success into commercial adoption. It also needs to grow revenue, expand reimbursement coverage, and successfully integrate its European operations.

Any slowdown in adoption or commercial progress could lead to heightened volatility.

Even so, JP Morgan’s new stake suggests at least one major institutional investor believes the growth story still has room to run. For shareholders, that vote of confidence is unlikely to go unnoticed.

The post This ASX healthcare stock is up 1,900%. One top fundie wants more appeared first on The Motley Fool Australia.

More reading

• Up 1,700% and more, what’s next for these ASX 200 shares?
• Here are the top 10 ASX 200 shares today
• Here are the 10 most shorted ASX shares
• Healthcare shares led the ASX 200 last week. Is a sector comeback underway?
• Here are the top 10 ASX 200 shares today

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Marc Van Dinther 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 JPMorgan Chase. 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.

Starting out in the share market can feel straightforward: buy a few popular ASX shares like BHP Group Ltd (ASX: BHP) and CSL Ltd (ASX: CSL), wait, and watch wealth grow. In reality, many new investors fall into avoidable traps that can hurt long-term returns.

The good news is that most of these mistakes are behavioural rather than technical. Once identified, they are relatively easy to fix. Here are three of the most common investing mistakes beginners still make.

1. Trying to time the market

One of the biggest mistakes new investors in ASX shares make is trying to predict short-term market movements.

It often starts with good intentions. Investors see headlines about falling markets and decide to “wait for a better entry point.” Or they sell during periods of volatility, hoping to buy back later at a lower price.

The problem is that timing the market consistently is extremely difficult, even for professionals. Markets tend to recover quickly, and missing just a handful of strong trading days can significantly reduce long-term returns.

A more effective approach is time in the market rather than timing the market. Regular investing, regardless of short-term noise, helps smooth out volatility over time.

2. Chasing hot stocks and trends

Another common mistake is buying ASX shares purely because they have recently surged.

This often happens during periods of market excitement. A stock doubles, gets attention on social media, and suddenly feels “safe” because everyone is talking about it.

But strong recent performance does not guarantee future returns. In many cases, the best part of the rally has already passed by the time retail investors enter.

Chasing momentum can also lead to concentration risk, where portfolios become overly exposed to a small number of high-flying growth stocks.

A more balanced approach focuses on business quality, earnings growth, and valuation rather than recent price action.

3. Ignoring diversification

Many beginners also underestimate the importance of diversification.

It is common for new investors to hold just a few ASX shares, often in sectors such as banking, mining, or technology. While this can work in strong markets, it creates significant risk if one sector underperforms.

Diversification helps reduce the impact of any single company or industry on overall portfolio performance. It can be achieved across sectors, geographies, and even asset classes.

Exchange-traded funds (ETFs) are among the simplest ways to achieve diversification without having to pick individual stocks. Broad-market ETFs provide exposure to hundreds of companies in a single investment.

Foolish takeaway

Most investing mistakes do not come from complex errors. They come from behaviour: reacting emotionally, chasing performance, and underestimating risk.

By focusing on long-term investing, prioritising quality businesses, and maintaining diversification, beginners can avoid many of the pitfalls that derail returns early on.

Investing does not need to be complicated, but it does require discipline.

The post New to ASX shares? Avoid these 3 beginner mistakes appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why I’d buy CSL and Zip shares before they recover
• Are Fortescue shares a strong buy or a value trap?
• Down 54%: What should I do with my CSL shares now?
• There are still some well-priced ASX dividend shares. Here’s where to look

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech names Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) exploded yesterday. 

WiseTech shares rose 14% yesterday while Xero shares rose 8%, making them two of the top performers on the ASX. 

Both companies were heavily impacted over the last year by AI takeover fears, with SaaS companies hit hard. 

Investors who have held these tech shares through 60%+ losses over the last 12 months will be hoping this marks the beginning of a long-term recovery. 

Why did Xero and WiseTech shares jump yesterday?

There are a couple of factors that might have impacted WiseTech shares yesterday. 

After falling 20% across Monday and Tuesday, it’s possible investors were simply buying the dip on this battered tech stock. 

However it may have also been influenced by the company’s response to recent media reports involving founder Richard White.

Meanwhile for Xero shares, investors are likely searching for value options after it once again received positive guidance from the team at Citi. 

What’s next?

These ASX tech shares now appear at a crossroads. 

The bull case for WiseTech shares is based on its position as a leading global logistics software provider. 

Its CargoWise platform benefits from high customer switching costs, recurring revenue, and long-term growth in global trade digitalisation. 

However, it appears right now the most important factor is regaining investor confidence after allegations against its CEO. 

Meanwhile, for Xero shares, the bull case centres around its strong market position in cloud accounting software, recurring subscription revenue, high customer retention, and continued growth opportunities in international markets. 

The bear case is that its valuation relies on sustained growth, making the stock vulnerable to slower subscriber growth, stronger competition, economic weakness, or delays in improving profitability.

What are experts saying about Xero and WiseTech shares?

Despite very real concerns, experts seem to believe both stocks are trading at attractive valuations.

WiseTech shares closed yesterday at $32.86 each. 

However, the team at Ord Minnett see this as a serious discount. 

The broker has a recent price target of $60 on WiseTech shares along with a retained buy recommendation. 

This indicates an upside potential of 82%. 

Meanwhile, for Xero shares, the team at Citi recently reaffirmed its buy rating and $113.60 price target on the cloud accounting platform provider’s shares.

Based on yesterday’s closing price of $70.31, this indicates 61% upside potential. 

The post Is the tech recovery finally here for Xero and Wisetech shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• Why Benz Mining, Collins Foods, WiseTech, and Xero shares are shooting higher today
• US chip stocks were smashed overnight. So why are ASX tech shares rising?
• ASX tech giants bounce back from heavy losses

Motley Fool contributor Aaron Bell has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.