ASX All Ords healthcare share Cogstate Ltd (ASX: CGS) has raced ahead of the All Ordinaries Index (ASX: XAO) over the past year.
In late trading on Tuesday, Cogstate shares were changing hands for $2.73 apiece. That sees the share price up 53.4% since market close on 21 June 2025, smashing the 0.7% 12-month gains posted by the benchmark index.
And according to Ellerston Capital Australian equities portfolio manager James Barker, the ASX All Ords healthcare share is well-positioned to deliver more outsized gains in the year ahead (courtesy of The Australian Financial Review).
Here's why.
ASX All Ords healthcare share on the growth path
Commenting on Cogstate, a stock his fund owns, Barker said, "This is a relatively undiscovered business as most of its operations are in the US with large global pharma."
As for what the company does, Barker explained:
The company has a digital cognitive assessment platform used in clinical trials for medicines targeting the central nervous system.
The business was historically focused on Alzheimer's disease trials, but it has recently been expanding into other indications such as mood, sleep, psychiatry and rare diseases.
And Barker noted that the ASX All Ords healthcare share has been on the growth path.
"Last week [8 July] it gave an update that showed total contracts signed were up 116% on the prior year, with US$89 million (AU$127 million) of contracts sold for the year," he said.
Summing up his bullish outlook on Cogstate shares, Barker concluded, "We see this as validation that the business is executing well; it's profitable, generating cash and has a share buyback in place."
What's the latest from Cogstate?
Cogstate released its half-year results (H1 FY 2026) on 19 February.
Highlights for the six months to 31 December included a 12% year-on-year increase in revenue to $26.9 million. And earnings before interest, taxes, depreciation and amortisation (EBITDA) of $6.5 million were up 5% from H1 FY 2025.
On the bottom line, the ASX All Ords healthcare share reported a net profit after tax (NPAT) of $4.5 million, up 16% year on year.
As for the balance sheet, Cogstate held $34.1 million in cash as at 31 December.
"These results demonstrate Cogstate's growing momentum and the increasing strength of our competitive position," Cogstate CEO Brad O'Connor said on the day.
O'Connor added:
We're seeing record levels of sales opportunities from an expanded customer base across more therapeutic indications, and those opportunities are converting into meaningful contract wins.
The post Up 53%, here's why this ASX All Ords healthcare share is tipped for more outperformance appeared first on The Motley Fool Australia.
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 positions in and has recommended Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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