Sigma Healthcare Ltd (ASX: SIG) shares are pushing higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare giant closed yesterday trading for $3.00. In early afternoon trade on Tuesday, shares are changing hands for $3.03 apiece, up 1.0%.
For some context, the ASX 200 is up 0.2% at this same time.
Today's outperformance is par for the course for Sigma Healthcare shares, which are now up 113.4% since this time last year. That sees them racing ahead of the 9.3% gains delivered by the benchmark index over this same period.
And this doesn't include the 1.8 cents per share in partly franked dividends eligible shareholders will have received over the year.
A lot of the big run higher was driven by the company's merger with privately held Chemist Warehouse, completed in February this year. And it now sees Sigma commanding a market cap of $35 billion.
Which brings us back to our headline question.
With shares having more than doubled in a year, is the ASX 200 healthcare stock still a good buy today?
Sigma Healthcare shares: Buy, hold, or sell?
MPC Markets' Mark Gardner recently ran his slide rule over the stock (courtesy of The Bull).
"The healthcare giant recently delivered a solid earnings update, reaffirming operational momentum and balance sheet strength," said Gardner, who has a hold recommendation on Sigma Healthcare shares.
According to Gardner:
Its defensive business model, underpinned by resilient demand for healthcare services, should help it weather potential market softness, particularly as broader equity markets appear vulnerable to downside risks.
Gardner conlcuded, "Although near term valuation upside appears limited, Sigma's stability and index support make it a prudent holding in the current environment."
What's the latest from the ASX 200 healthcare stock?
Sigma Healthcare shares closed up 7.8% on 27 August, when the company released its first full-year earnings results since its merger with Chemist Warehouse.
Highlights catching investor interest included an 82.4% year-on-year increase in normalised revenue to $6.00 billion. Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $884 million were up 41.4% from FY 2024.
On the bottom line, Sigma reported normalised net profit after tax (NPAT) of $579 million, up 40.1%.
Commenting on the strong results that sent Sigma Healthcare shares surging on the day, CEO Vikesh Ramsunder said:
The merger with Chemist Warehouse has delivered a stronger, more integrated healthcare business, with greater scale, capability, and market reach. The FY25 results demonstrate the group's momentum and potential for ongoing growth.
