Should you buy these high flying ASX 200 shares?

A strong run since Christmas means that the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has carved out an impressive gain of 4% over the last 30 days.

While this gain is strong, it pales in comparison to some of the gains that have been made on the benchmark index during the period.

Three shares that have surged higher since this time last month are listed below. Here’s why they are flying high:

The Bravura Solutions Ltd (ASX: BVS) share price has jumped a massive 22% since this time last month. The provider of software products and services to clients operating in the wealth management and funds administration industries was hit hard in November due to a selloff of tech shares. Its shares have recovered strongly over the last month and I can’t say I’m surprised. At one point they were trading at under 30x earnings, which I felt was great value given its strong long-term growth potential.

The Sigma Healthcare Ltd (ASX: SIG) share price has been the best performer on the ASX 200 over the last 30 days with a massive 35% gain. The pharmacy chain operator and distributor’s shares have been on fire after rival Australian Pharmaceutical Industries Ltd (ASX: API) proposed that the two companies merge. I think the merger makes a lot of sense and will put both companies in a much stronger position. However, there’s no guarantee that the ACCC will allow the merger to proceed if they push ahead with it.

The Xero Limited (ASX: XRO) share price has surged 17% since this time last month. As with Bravura, a selloff of tech shares dragged the Xero share price lower in November and created a buying opportunity that a lot of investors have not been able to resist. In addition to this, news that Morgan Stanley slapped an overweight rating and $50.00 price target on the business and accounting software company’s shares late last year appears to have caught the eye of investors. I think Xero would still be a great investment option even after this solid run.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Bravura Solutions Ltd and Xero. 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 Scott Phillips.

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