Sigma Healthcare Ltd (ASX: SIG) shares closed on Monday trading for $2.82 apiece.
That sees shares in the S&P/ASX 200 Index (ASX: XJO) healthcare giant down 3.75% over 12 months, underperforming the 2.53% one-year gains posted by the benchmark index.
More recently, the stock has been trending higher, up 8.46% since hitting a one-year closing low of $2.60 a share on 24 March.
Sigma Healthcare shares also trade on a fully franked 1.2% trailing dividend yield.
And looking ahead, Morgans Financial's Mitch Belichovski believes the company is well-positioned to deliver further market-beating growth (courtesy of The Bull).
Here's why.
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Should you buy Sigma Healthcare shares today?
"Sigma Healthcare is a wholesale distributer of pharmaceutical goods and medicines," Belichovski said.
Citing the first reason he's bullish on Sigma Healthcare shares, he noted:
Following the merger with Chemist Warehouse to create a leading healthcare franchisor, Sigma recently announced it had signed a memorandum of understanding with Greenlight Healthcare that will launch the Chemist Warehouse brand in the UK market. Sigma will acquire a 75% interest in a number of stores.
Commenting on the company's UK expansion earlier this month, Sigma Healthcare CEO Vikesh Ramsunder said, "International expansion is one of our four key strategic growth pillars."
Ramsunder added:
Having proven that the Chemist Warehouse model resonates with customers in other markets, including New Zealand and Ireland, the JV with GreenLight now provides a measured market access into the UK.
Moving on to the second reason Belichovski has a buy recommendation on the ASX 200 stock, he said:
Chemist Warehouse has averaged opening 33 new stores per annum over the past five years, but this international expansion could expedite growth. SIG is a first class operator that's likely to continue its impressive growth track record into the future.
And I'll throw in a third reason you may wish to buy Sigma Healthcare shares today myself.
Namely, for the company's growing fully-franked dividends.
While the current 1.2% dividend yield isn't huge, the company's most recent interim payout on 20 March was the highest since 2019. And if Belichovski has it right on the company's growth path, investors could enjoy further dividend boosts ahead.
What's the latest from the ASX 200 stock?
Sigma Healthcare presented at the annual Macquarie Group Ltd (ASX: MQG) Conference on 4 May.
The company reported that sales at its Australian Chemist Warehouse segement had increased by 16.7% year to date, while sales at its International Chemist Warehouse segment were up 24.7%,.
The company also said it had committed to opening a new 23,000 square metre distribution centre in New Zealand.
Sigma Healthcare shares closed up 0.7% on the day of the Macquarie presentation.
