2 of the best ASX 200 tech shares to buy before they rebound

Some of the ASX 200’s best-known technology shares have been hit hard.

That does not automatically make them buys. A falling share price can sometimes signal a broken growth story.

But when the company still has a strong product, a large market, and a clear reason to keep growing, a major pullback can also create an opportunity for investors.

With that in mind, here are two ASX 200 tech shares that I think could be worth buying before they rebound.

Life360 Inc (ASX: 360)

The first ASX 200 tech share to look at is Life360. Its shares are down almost 60% from their high, which is a sharp fall for a company that continues to deliver strong recurring revenue growth and an ever-expanding global user base.

Life360 is sometimes described as a family tracking app, but that arguably undersells what the company is trying to become. It is building a digital safety layer for households, combining location sharing, driving alerts, crash detection, emergency support, and connected services.

The product works because it solves a simple human problem: families want to know that the people they care about are safe.

That can make the platform highly engaging. Once families start relying on it, the app can become part of daily life rather than something used occasionally.

If Life360 can keep growing paid subscriptions and expanding its services carefully, the recent share price weakness may prove to be an incredible buying opportunity.

Pro Medicus Ltd (ASX: PME)

Another ASX 200 tech share that could rebound strongly over the next 12 months is Pro Medicus.

The medical imaging software company’s shares are down around 50% from their high. Once again, this is despite Pro Medicus continuing to deliver stellar earnings growth and report major contract wins.

Pro Medicus sits inside a part of healthcare where speed and accuracy matter. Hospitals and radiology groups are producing enormous volumes of scans, and doctors need systems that can move large images quickly, display them clearly, and fit into busy clinical workflows.

Its Visage platform does this in a way that has helped the company win large contracts from some of the most important healthcare institutions in the world.

While Pro Medicus’ valuation has often looked demanding, I think its strong growth, world-class technology, and positive long-term growth outlook justifies this.

And if the company keeps winning contracts and expanding across large health networks, the pullback could prove to be a compelling long-term buying opportunity.

The post 2 of the best ASX 200 tech shares to buy before they rebound appeared first on The Motley Fool Australia.

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• Where to invest $20,000 in ASX 200 shares in June
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• 3 incredible ASX growth shares tipped to rise 20% to 70%
• Down 60%: Is this beaten-down ASX growth share too cheap to ignore?

Motley Fool contributor James Mickleboro has positions in Life360 and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.