Altium Limited (ASX: ALU) shares surged 10.54% higher yesterday, but is there still time to buy for a bargain?
Why did Altium shares surge higher on Monday?
Altium shares were one of many ASX 200 shares to surge in yesterday's trade. The S&P/ASX 200 Index (ASX: XJO) closed 4.33% higher at 5,286.80 points on Monday in a strong rebound.
There have been signs that Australia could be flattening the coronavirus curve. It's still early days, but infection rates are levelling off and the death rate remains low. That boosted investors spirits on Monday and Altium shares rocketed with the renewed confidence in the Aussie economy.
Altium is an American public software company that provides PC-based electronics design software for 3D printed circuit board (PCB) designers. You may also know the software group as part of the WAAAX group of ASX tech shares.
But despite some astronomic share price growth in recent years, Altium shares are still down 13.94% in 2020. That's still ahead of the benchmark Aussie index, but not what most shareholders are used to.
Are Altium shares in the buy zone?
Yesterday's share price gain is a positive sign for shareholders. Prior to the coronavirus crash in March, Altium shares hit a record-high of $42.76 in mid-February. The group's shares are back to $29.88 per share as of yesterday's close so there could still be further to go.
Altium's business is highly specialised and I think it has a good competitive advantage in the PCB design field. The Aussie-American tech group continues to see strong earnings growth and Altium shares are up 523.80% in the last 5 years.
The Aussie tech group's shares even have a 1.27% dividend yield right now. That may not be a huge number, but it could make a difference when income is tight at the moment.
Foolish takeaway
Altium shares could have a slow and steady recovery back to their pre-correction share price. I don't think a 10% surge should deter you from buying the tech group's shares for a long-term investment horizon.
