The Pro Medicus Ltd (ASX: PME) share price has more than doubled over the past year.
In fact, the medical imaging software company's share price has gained about 60% over the past two months.
The recent market chaos sparked by President Trumps's tariff regime created a solid buying opportunity for aspiring Pro Medicus investors.
But for those who missed the boat, is it too late to buy Pro Medicus shares?
Here are 3 reasons why it could be worth keeping an eye on Pro Medicus.
Image source: Getty Images
Global Business Model
Pro Medicus is a global player.
Its flagship product, Visage 7, is an enterprise-grade imaging platform used by some of the world's leading hospitals and radiology providers.
The software enables clinicians to view large, complex medical images with speed and precision, improving both workflow and patient outcomes.
With operations in North America, Europe, and Australia, Pro Medicus benefits from a growing base of long-term contracts, particularly in the lucrative US healthcare market.
The company recently signed a $20 million, five-year contract with the University of Iowa Health Care to rollout its cloud-based Visage 7 suite.
Pro Medicus CEO Dr Sam Hupert said the company's pipeline remains strong.
"They (the University of Iowa Health Care) join a long list of Visage 7 clients to opt for a fully cloud-based solution, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market."
Growth Runway
Despite its strong share price performance, Pro Medicus shares still have significant room to grow.
The shift to digital imaging and cloud-based healthcare platforms is in full swing.
Many hospitals and health care institutions are still transitioning away from older, slower legacy systems.
As more global health systems seek to modernise their imaging infrastructure, Pro Medicus is clearly capitalising.
In March, Pro Medicus announced a $40 million, 7-year contract with LucidHealth.
That followed announcements earlier this year of a $53 million deal signed with BayCare and a $33 million contract with the University of Kentucky.
Strong Financials
In its latest half year results released in February, Pro Medicus reported after tax profit of $51.74 million for the half, up 43% on the prior corresponding period.
The company also stated revenue from contracts with customers for the 6-month period increased from $74 million to $97 million, up 31%.
And Pro Medicus ended the half with cash and other financial assets of $182.3 million and no debt.
Foolish takeaway
Pro Medicus trades at a premium valuation. Its price-to-earnings ratio is around 297.
But there is good reason for that.
With strong fundamentals, global growth potential, and a track record of execution, Pro Medicus could still prove to be a good buy for long-term investors.
For now, Pro Medicus shares remain high on my watch list as I wait for a buying opportunity.
