Pro Medicus Ltd (ASX: PME) shares are marching higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) health imaging company closed yesterday trading for $172.82. In morning trade on Wednesday, shares are changing hands for $176.77 apiece, up 2.3%.
For some context, the ASX 200 is up 0.3% at this same time.
With today's intraday boost factored in, Pro Medicus shares have now gained 63.5% since the ASX healthcare stock notched a 52-week closing low of $108.15 on 24 February.
With that said, the share price remains down 46.5% since closing at a record high of $330.48 on 17 July 2025.
The big sell-off over the following months wasn't restricted to Pro Medicus. In fact, the vast majority of global Software as a Service (SaaS) stocks came under heavy selling pressure in the latter months of 2025 and the early months of 2026.
In what you may have heard referred to as the 'SaaSpocalypse', these stocks were sold off amid investor concerns that artificial intelligence could replace many of the services these companies provide.
Now, here's why the impressive rebound in the ASX 200 healthcare share could have a long way to run yet.
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Should I buy Pro Medicus shares today?
MPC Markets' Mark Gardner recently analysed the outlook for the resurgent ASX 200 healthcare share (courtesy of The Bull).
"The company provides medical imaging software and services to hospitals and health care groups across the world," Gardner said.
Explaining the first reason he's bullish on the stock, and another reason why it was sold off earlier this year, he noted, "It was removed from S&P/ASX 50 and the S&P Global 1200 in June, which left index funds dumping stock whether the business deserved it or not in terms of performance."
The second reason Gardner issued a buy recommendation on Pro Medicus shares is the strong growth metrics reported at the company's half-year results (H1 FY 2026) on 12 February.
Gardner said, "Reported half year net profit after tax of $171.2 million in the first half of 2026 was up 230.9% on the prior corresponding period."
In other core financial metrics, Pro Medicus reported a 28.4% year-on-year increase in revenue to $124.8 million, supported by a series of new contract wins valued at more than $280 million. And the company ended the half year debt-free.
Speaking of the string of new contract awards in H1, that success has continued apace in H2 FY 2026.
"The group keeps signing US hospital deals," Gardner noted, citing the third reason you might want to buy Pro Medicus shares today.
"Although the stock has bounced off its lows, we believe the market is still underpricing growth," he concluded.
