2 software shares I'm watching

The Hansen Technologies Limited (ASX:HSN) share price and Pro Medicus Limited (ASX:PME) share price have fallen hard over the past six months.

| More on:
a woman

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

The Hansen Technologies Limited (ASX: HSN) share price and Pro Medicus Limited (ASX: PME) share price have fallen hard over the past six months.

As can be seen in the following chart, Pro Medicus shares and Hansen Technologies shares have fallen 28% and 31%, respectively.

Source: Google Finance
Source: Google Finance 

Pro Medicus

Pro Medicus is a $460 million company developing medical imaging software. Its products are used by radiologists and doctors to inspect and manipulate images in real time.

Radiology is a highly regulated field of medicine and the imagery used by doctors must be incredibly clear to meet regulatory standards. To give you a sense of just how clear it must be, consider this: When you a take photo with your new smartphone, it may produce a 5 megabyte (Mb) file size. A radiologist's file could be 2,000 Mb (2Gb). Imagine trying to send that to a friend!  

What makes Pro Medicus incredible is that it can deliver these images to a radiologist's smartphone with regulatory-approved clarity in just seconds. The doctor can inspect and manipulate the image on the spot. 2D, 3D, or even 4D.

Hansen Technologies

Hansen is a little larger than Pro Medicus, with a market capitalisation of $570 million. It develops software for customer care and billing, like the systems used by call centres and big businesses. By far, Hansen's largest operation is in 'billing', creating applications for companies, such as those in pay television and telecommunications. The company's software is ingrained with company processes, meaning a lot of its revenue is recurring.

Foolish Takeaway

Despite their recent performance, Hansen and Pro Medicus have performed exceptionally well over the longer-term. Therefore, the recent falls may present a compelling opportunity for savvy investors. I have both of these businesses on my watchlist in 2017.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen welcomes and encourages your feedback. You can follow him on Twitter @OwenRask. The Motley Fool Australia owns shares of Hansen Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »