Australia Markets open in 8 hrs 2 mins

Why Sonic Healthcare shares are at an all-time high

Kenneth Hall
boy standing on ladder against the backdrop of a cloudy sky

Shares in Sonic Healthcare Limited (ASX: SHL) hit a new mark of $30.13 in early trade yesterday despite no news or announcements from the Aussie healthcare group. 

So, what’s driving Sonic Healthcare shares higher in 2019 and is there still time to buy?

Why Sonic Healthcare shares are surging higher

Sonic Healthcare shares have been racing higher in 2019 and are up more than 36% in 2019 so far.

This is an especially strong run when you consider the S&P/ASX 200 Index (INDEXASX: XJO) is up 21.12% over the same period.

A strong full year result has been a big boost for Sonic, while the ASX healthcare stocks have had a relatively good year as well.

Sonic reported 18% revenue growth in the United States with 5% organic growth once its Aurora acquisition is excluded.

The Aussie healthcare company is forecasting future growth in the United States, which could see its group revenue share grow even further.

CEO Dr. Colin Goldschmidt said Sonic’s pipeline for acquisition and hospital laboratory opportunities remains strong. Sonic has operations across Australia, the United States, New Zealand, Germany, Ireland and Switzerland. 

Sonic shares climbed higher on the back of the result as the company boosted its final dividend by 4.1% to 51 cents per share.

Is there time to buy Sonic on the ASX?

Some investors might be wary of purchasing a company at or near its all-time high.

This can be very wise, but there is also the potential for momentum to carry Sonic shares higher in the short-term.

However, if you’re a buy-and-hold investor like me, you should be looking at the long-term potential of Sonic.

Strong earnings and the potential for expansion could be 2 good reasons to buy Sonic Healthcare shares in November.

The company also has a market cap of $14.2 billion and a tidy 2.81% dividend yield on offer for investors.

The post Why Sonic Healthcare shares are at an all-time high appeared first on Motley Fool Australia.

If you're after other ASX dividend shares this year then check out these 3 potential winners below!

Top 3 Dividend Shares To Buy For 2020

When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.

In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.

Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.

Click here now to access this free report.

More reading

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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019