NIB Holdings Ltd (ASX: NHF) shares have soared 19% over the past six months.
Investors who snapped up shares in the ASX-listed private health insurer at the recent lows on 20 March will be doing even better, with gains of 29%.
Up 1.1% in intraday trading today, NIB shares are currently changing hands for $8.79 apiece. That gives the health insurer a market cap just shy of $4.3 billion.
Following the past few years of growth, NIB was added to the S&P/ASX 100 Index (ASX: XTO) on 20 March. That came as part of Dow Jones Indices' regular quarterly rebalance.
And the company reported some strong half-year results in February. Highlights included a 13.3% year-on-year increase in underlying operating profit of $125 million. And revenue increased by 9.3% to $1.5 billion.
But with such a strong run behind it, are NIB shares still a buy?
Is it too late to buy NIB shares?
For some greater insight into that question, we defer to Scott Phillips, chief investment officer at The Motley Fool.
After revealing that he owns NIB shares himself, Phillips said he remains bullish on the stock.
One of the reasons he likes the high-quality health insurer is because the company is "continuing a long-run trend of taking market share from its bigger, slower, less relevant competitors".
And Phillips isn't concerned about the limited domestic growth potential.
"It's far more than just a plain vanilla Australian insurer," he told us. He noted that the limited Aussie growth opportunity is "something the company recognises, and is actively working to diversify away from".
Phillips added:
Incoming worker and student insurance is one avenue, while investing in other jurisdictions – namely New Zealand – gives it growth potential it can't find at home. The company's recent decision to enter the NDIS program management fray is in its early days. But NIB expects it to be a profitable move.
Explaining why he expects more gains from NIB shares, Phillips also drew on Warren Buffett's investing nugget, "A great manager is as important as a great business."
"I've long considered NIB's CEO Mark Fitzgibbon one of the most underrated ASX CEOs," Phillips said. "His long-term track record is excellent, and I like his approach to delivering value for shareholders."
