S&P/ASX 200 Index (ASX: XJO) healthcare share Sigma Healthcare Ltd (ASX: SIG) is getting caught up in the broader, Trump tariff-fuelled market sell-down today.
Shares in Sigma – which owns Amcal, Discount Drug Stores, Guardian Pharmacy, and, as of February, Chemist Warehouse – closed Friday trading for $2.89. In afternoon trade on Monday, shares are changing hands for $2.74 apiece, down 5.2%.
For some context, the ASX 200 is down 3.8% at this same time.
At the current price, the ASX 200 healthcare share commands a market cap of $31.6 billion.
Despite today's retrace, Sigma shares remain up 125% since this time last year, smashing the benchmark index's 12-month 5.3% losses.
While those juicy gains have come and gone, Sanlam Private Wealth's Remo Greco believes Sigma can continue to outperform over the long term (courtesy of The Bull).
Here's why.
ASX 200 healthcare share on the growth path
"Sigma's merge with Chemist Warehouse Group has created a leading healthcare wholesaler, distributor and retail pharmacy franchisor," said Greco, who has a buy recommendation on the ASX 200 healthcare share.
"Its recent market capitalisation puts the stock in the top 50 on the ASX," he said.
One of the reasons Greco is bullish on Sigma shares relates to Australia's demographics.
"The business benefits from its exposure to Australia's ageing population," he said.
Another reason is Sigma's ongoing store expansions.
"The company will open around 40 new stores a year," Greco said. "We expect the company to generate more revenue and profits from selling products off the shelves than dispensing prescriptions."
The third reason to buy the ASX 200 healthcare share today is the company's strong earnings growth.
According to Greco:
As a stand-alone business, Sigma reported 2025 normalised earnings before interest and tax of $68 million, up 183.5% on the prior corresponding period and at the upper end of the guidance range previously provided.
With Sigma's merger with Chemist Warehouse now a done deal, Greco said, "The merger with Chemist Warehouse Group became effective on February 12, 2025. The stock isn't cheap but worthy of accumulating a position for the longer term."
What's been happening with Sigma shares?
The ASX 200 healthcare share reported its full-year results for the 12 months ending 31 January on 20 March. Those results did not include its newly completed merger with Chemist Warehouse.
In addition to the huge earnings boost Greco mentioned, Sigma's FY 2025 net revenue increased by 50.9% year on year to $4.8 billion. Underlying net profit after tax was up 878% to $41.9 million.
Looking at what's next for the ASX 200 healthcare share, CEO Vikesh Ramsunder said on the day:
Looking ahead and having concluded the merger, our management teams are focused on seamless integration and delivering long term value to shareholders.
We have created a leading wholesaler and retail franchisor with strong growth potential in Australia and progressively internationally.
