Here’s why the Pro Medicus (ASX:PME) share price is up 78% this year

Shares in the healthcare imaging group are soaring in 2021
The post Here’s why the Pro Medicus (ASX:PME) share price is up 78% this year appeared first on The Motley Fool Australia. –

The Pro Medicus Limited (ASX: PME) share price has been on fire in 2021. Shares in the Aussie health imaging IT provider have surged 78% higher this year – more than 12 times the gains in the S&P/ASX 200 Index (ASX: XJO).

Here’s why the Aussie healthcare technology company is surging higher this year.

Why the Pro Medicus share price is up 78% in 2021

Pro Medicus provides medical imaging software and services to a range of healthcare groups around the world. The healthcare informatics group has been steadily building in recent times and 2021 has proven to be a real breakout year.

It all started back in mid-January 2021. The Pro Medicus share price rocketed more than 38% in the space of one week after announcing a record-breaking deal with US-based healthcare group, Intermountain.

The deal, worth $40 million, was the latest in a string of deals with major US hospitals. Shares in the Aussie medical technology group soared on the news as Pro Medicus executed on its strategy to expand its US footprint.

Despite somewhat stagnating in Q2 2020, the Pro Medicus share price has been steadily climbing since May. Steady gains have been supported by new contract signings including an 8-year, $14 million deal with The University of Vermont.

The healthcare technology share is up 54.5% since 12 May after another strong surge after its recent FY21 results.

Pro Medicus reported a 19.5% jump in revenue to $67.9 million with underlying net profit after tax up 33.7% on FY20 to $42.6 million. The company also announced an 8 cents per share final dividend for shareholders after announcing a record number of new contracts during the year.

The Pro Medicus share price rocketed 15.7% higher following the release of its results. Despite dipping in Friday’s trade, shares in the healthcare imaging group remain up more than 78% for the year.

The post Here’s why the Pro Medicus (ASX:PME) share price is up 78% this year appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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