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The Sonic Healthcare share price is at a new record high. Should you buy?

The Sonic Healthcare Limited (ASX: SHL) share price has been climbing higher to start the year and just hit a new 52-week high earlier this morning.

So, should you be buying shares in the $14.31 billion healthcare group today or waiting until results season?

Why the Sonic Healthcare share price is soaring

At the time of writing, the Sonic Healthcare share price is trading at a new 52-week high. The group’s shares are up 0.39% today to $30.68 per share after an impressive 2019.

The healthcare group’s share price surged 31.88% last year to outpace the S&P/ASX 200 Index (INDEXASX: XJO). 2020 has been no different, with the Sonic Healthcare share price outperforming the benchmark index by 238 basis points this year.

Interestingly, there have been no market moving announcements from Sonic since November 2019. However, a strong start for the ASX 200 has been the tide that has lifted all ships.

There is also speculation of further interest rate cuts from the Reserve Bank of Australia (RBA) in the wake of the devastating bushfires. Further rate cuts to boost economic activity could see strong earnings from the largest Aussie companies in August this year.

The group’s share price surged higher in 2019 largely thanks to its strong earnings. Sonic reported 18% revenue growth in the United States and completed its acquisition of Aurora Diagnostics for US$540 million.

Should you buy this Aussie healthcare stock today?

In my opinion, January is always an interesting period for the ASX 200. Investors are busy rebalancing and positioning their portfolios for the year ahead which can muddy the waters slightly.

It’s also just two weeks until we kick off the February half-year earnings season for many of the ASX 200 companies. The Sonic Healthcare share price could surge beyond its current record high if it can produce another strong result next month.

One thing is for sure, all eyes will be on the group to see what its growth prospects are looking like for 2020 and beyond.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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