The AFR is reporting Morningstar has an “accumulate” rating for medical business Primary Health Care Limited (ASX: PRY), saying fair value for the shares are $5.00.
“The ageing population and ongoing technology innovation will also help underpin pathology and radiology test volumes,” Morningstar said.
Last month, Primary Health Care Limited reported a pleasing set of full year results, the highlight being a 14.3% jump in the full year dividend to 20 cents per share. Despite that, shares in the medical centre operator are trading close to a 52-week low.
Primary Health Care shares trade on a P/E of around 14 and a fully franked dividend yield of around 4.5%. Given that modest valuation, and attractive dividend yield, it’s no wonder Morningstar is attracted to the shares.
An even better bet than Primary Health Care?
A 4.5% fully franked dividend is not to be sneezed at, and Primary Health Care certainly looks an interesting investment opportunity.
However, if it’s growth you’re after, there are better bets than Primary Health Care.
I’ve recently released a special video report on our analysts’ #1 ASX tech stock — and it’s all about one Australian company poised to win big from the ‘cloud computing‘ trend.
Shares is this ‘under the radar’ ASX tech stock are already up 165%, but our top analyst thinks this could be just the beginning. Click here to claim your FREE copy.
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Bruce Jackson does not own shares in Primary Health Care.
- Leading investment bank says US shares could fall 10%, something that could have serious implications for the ASX 200 index – July 9, 2020 1:18pm
- ASX 200 follows Wall Street higher | Have we passed the bottom? | Recovery will be brutal | ASX stock of the day hiding in plain sight – April 23, 2020 12:42pm
- Top fund manager is finding “an abundance of growth opportunities” outside the hot ASX tech stocks – September 19, 2018 3:24pm