Pro Medicus Limited (ASX: PME) shares climbed 1.26% higher yesterday while the S&P/ASX 200 Index (ASX: XJO) crashed 7.36% lower. The Aussie healthcare imaging software provider was one of only a handful of ASX shares to climb higher on Thursday, gaining 1.26%, but why did it avoid the crash?
Why Pro Medicus shares climbed higher yesterday
There have been no market-moving announcements from the group since its half-year results on 13 February. Pro Medicus shares have been falling ever since that announcement headlined by a 32.7% jump in net profit after tax.
Pro Medicus' revenue jumped 15.7% higher to $29.3 million while its earnings before interest and tax (EBIT) margin came in at 50.2%. The group's dividend distribution was increased by 71.4% to 6 cents per share. Pro Medicus shares are now yielding 0.62% and trading at a price-to-earnings (P/E) ratio of 79 times.
Despite the Pro Medicus share price dropping 55.7% from its September 2019 52-week high, the group's shares are still up on a 12-month basis. With no news from the group yesterday, I think the price rebound could be investors buying back into the IT imaging group after heavy selling in recent weeks.
One of the hardest things about the current market is that movements aren't being purely driven by fundamentals. While there are some companies that are being hit hard by COVID-19, I think Pro Medicus shares are just finding a resistance level around the $17 per share mark.
Are there other ASX 200 buying opportunities right now?
It can be painful to watch the ASX 200 plummet lower. However, with Pro Medicus shares being one of the only share price gainers yesterday, there should be buying opportunities.
I'm not sure I'd be game to buy into ASX travel shares right now, but they could be oversold. I'd say the healthcare and energy sectors are also worth looking at for their non-cyclical earnings. If you're interested in some options, Ramsay Health Care Limited (ASX: RHC) could be one to watch in March.
