Insights

Here’s why the Sonic Healthcare share price (ASX:SHL) is up 9% in December

Sonic Healthcare is having a positive month as COVID-19 cases and demand for testing surges.
The post Here’s why the Sonic Healthcare share price (ASX:SHL) is up 9% in December appeared first on The Motley Fool Australia. –

The Sonic Healthcare Limited (ASX: SHL) share price is having a bright December, capping off a bumper year.

Shares in the medical diagnostic company are swapping hands at $46.49 at the time of writing, up 8.88% for the month.

Let’s take a look at what might be driving this recent investor confidence in Sonic Healthcare.

A merry December for Sonic Healthcare

The Sonic Healthcare share price has been climbing steadily despite no price-sensitive announcements from the company this month.

It did deliver some positive news on 17 December, though. Sonic Healthcare announced it has acquired ProPath, an anatomical pathology company based in Dallas, Texas in the United States.

ProPath will bring additional annual revenue of about $110 million to Sonic Healthcare, along with 50 pathologist staff. The takeover was part of Sonic’s wider plan to combine anatomical pathology and clinical laboratory testing in the US.

Sonic Healthcare’s soaring share price has coincided with a rise in demand for COVID-19 testing and vaccinations in December.

Sonic Healthcare is Australia’s largest private pathology operator with global operations all over the world, including Germany, Switzerland, the UK, Belgium, New Zealand, and the US.

The company tests thousands of people each day for COVID-19 and is also involved in the Australian vaccination program.

Demand for COVID-19 testing for travel has also been on the rise this month. Sonic offers a COVID-19 PCR test for international travel at a cost of $145 per test per person.

Sonic Healthcare is likely on investors’ minds this month due to surging COVID-19 cases and increased demand for testing.

Federal Health Minister Greg Hunt has announced that the minimum interval between COVID-19 double vaccination and booster shots will be reduced to 4 months from 4 January.

A national cabinet agreement to shift the focus to Rapid Antigen Tests (RAT) and redefine the term ‘close contact’ could impact PCR testing demand.

Sonic Healthcare share price recap

The Sonic Healthcare share price has soared 44% in the past 12 months and has climbed 1.24% in the past week.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 14% in the past year.

The company has a market capitalisation of more than $22 billion based on the current share price.

The post Here’s why the Sonic Healthcare share price (ASX:SHL) is up 9% in December appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Sonic (ASX:SHL) share price hits 52-week high amid COVID booster change

ASX 200 (ASX:XJO) midday update: AMP shoots higher, travel shares rise

Top brokers name 3 ASX shares to buy today

Experts rate these 2 ASX healthcare shares as buys in 2022

ASX 200 (ASX:XJO) midday update: BNPL shares sold off, Corporate Travel returns

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!