Should I buy Sonic Healthcare stock in 2025?

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At HelloSafe, our expert has been tracking the Sonic Healthcare share price for over three years. Every month, hundreds of thousands of users in Australia trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Sonic Healthcare.

What is Sonic Healthcare?

The Sonic Healthcare Stock Price

The price of Sonic Healthcare stock is rising this week. The current price stands at AUD 27.16, reflecting a positive change of +1.15% over the past 24 hours and +1.72% across the week. Sonic Healthcare boasts a market capitalisation of AUD 13.42 billion, with an average three-month daily volume of 1.37 million shares. The stock trades at a P/E ratio of 23.82, offers a dividend yield of 3.94%, and has a low beta of 0.37, indicating lower volatility than the broader market. This stability, combined with steady growth, makes Sonic Healthcare a notable option for Australian investors seeking reliable long-term exposure to the healthcare sector.

Our full analysis of the Sonic Healthcare stock

Having meticulously reviewed Sonic Healthcare’s latest financial results and tracked the stock’s evolution over the past three years, we have synthesised multiple forms of analysis—spanning fundamental indicators, technical signals, market dynamics, and sector comparisons—using proprietary algorithms designed to highlight optimal opportunities. Against this robust analytical backdrop, a critical question emerges: why might Sonic Healthcare stock once again become a strategic entry point into the diagnostics and healthcare sector in 2025?

Recent performance and market context

Sonic Healthcare has delivered a resilient performance in recent months, underscored by its current share price of AUD 27.16—a 1.15% gain over the past 24 hours and a weekly increase of +1.72%. Despite a minor six-month pullback, the stock has shown a robust +5.48% return year-on-year, outperforming some core sector benchmarks. This momentum reflects the company’s strong execution across geographies and a supportive Australian healthcare backdrop, with demographic trends and private sector healthcare demand remaining favourable. Notably, Sonic’s successful completion of the LADR acquisition in Germany and positive integration updates focus investor attention on a period of renewed European growth, while ongoing organic expansion solidifies its existing market foothold. The company’s ability to post consistent, progressive results even during sector volatility underscores its quality and institutional appeal in the current environment.

Technical analysis

From a technical perspective, Sonic Healthcare is displaying a constructive, bullish structure across key short- and medium-term indicators:

• RSI (14 days) stands at 62.5, currently in neutral-to-bullish territory, suggesting neither excessive overbought nor oversold conditions and leaving ample room for upward momentum.
• The MACD is at 0.13, delivering a positive buy signal, confirmed by recent bullish crossovers.
• Stochastic indicators further support this view, positioned at 78.5 and offering room for continued upside if sector sentiment holds.
• All major moving averages—20, 50, 100, and the crucial 200-day—are trending below or at the share price, collectively issuing strong buy signals. Over the last quarter, Sonic has demonstrated technical resilience, repeatedly finding support at AUD 26.81 and rebounding strongly off key pivots.

Bullish reversal signals, such as upper Bollinger band walk and directional movement crossover, reinforce the case that Sonic Healthcare may be entering a new phase of price appreciation. These factors, coupled with moderate beta (0.37), point to strong technical and volatility-adjusted positioning for new and existing investors alike.

Fundamental analysis

Underlying these positive price trends are impressive fundamentals. Sonic Healthcare reported total FY24 revenue of AUD 8.97 billion, a 9.8% year-on-year increase that outpaced peers and exceeded consensus estimates for organic growth. EBITDA for H1 2025 surged 12% vs H1 2024, reaching AUD 827 million, and net profit rose 17% for the same period—indicating robust operational leverage and well-managed cost structures. The company’s disciplined expansion strategy was on full display with the AUD 700 million LADR acquisition, now set to add approximately AUD 610 million in annual revenue and further diversify the European business profile. With a trailing P/E of 23.8 and a price-to-sales ratio of 1.4, Sonic remains attractively valued relative to sector peers given its growth, scale, and defensive cash flow characteristics. Its dividend yield of 3.94% provides meaningful income, reinforced by a progressive payout policy. Structural strengths—such as industry-leading capabilities in complex diagnostics, high barriers to entry, strong brand reputation in Australia and Europe, and sustained investment in automation and technology—foster resilient earnings power through various market cycles.

Volume and liquidity

Strong average daily turnover—1.37 million shares across the past three months—reflects ongoing market confidence in Sonic’s trajectory and high levels of institutional interest. With approximately 92% of shares in public float and diversified ownership (55% retail, 40% institutional), the stock benefits from robust liquidity and dynamic valuation adjustments. This high liquidity supports efficient entry and exit for all investor types, underlining investor trust and facilitating upward price action as positive catalysts emerge.

Catalysts and positive outlook

Looking ahead, several catalysts reinforce the bullish outlook for Sonic Healthcare:

• The LADR integration is expected to accelerate European revenue and margin gains, with projected synergies enhancing group earnings from H2 2025 onward.
• Demographic tailwinds, such as the ageing population in Australia and Europe and a post-COVID shift in health awareness, underpin sustainable long-term demand for diagnostic services.
• Sonic’s continuous programme of technological innovation—spanning laboratory automation, AI-driven pathology, and advanced molecular testing—positions the group at the forefront of global healthcare trends.
• Stable and progressive dividend policy provides return-of-capital confidence, while the company’s prudent approach to further acquisitions signals a disciplined growth trajectory.
• Analyst consensus pushing toward a price target of AUD 30.00 (+10% upside) embodies market optimism and recognition of Sonic’s evolving strengths.

Extra-firm ESG posture, with impactful initiatives in environmental responsibility and social governance, may also attract additional flows from ESG-focused asset managers—further supporting re-rating potential.

Investment strategies

Multiple compelling arguments emerge for investors considering Sonic Healthcare across timeframes:

• Short-term: The confluence of bullish technical signals (MACD crossover, moving average alignment) and imminent LADR integration news may drive price appreciation toward short-term resistance at AUD 27.85–28.21. Entry near current support zones could reward tactical buying.
• Medium-term: Robust interim growth, strong semi-annual earnings, and tangible progress on European expansion paint a positive picture into FY25. Accumulating on technical pullbacks could leverage sectoral strength and fundamental momentum.
• Long-term: Sonic’s unmatched scale, stable recurring revenues, management depth, and long runway for organic and acquisition-driven growth establish it as a core portfolio position in healthcare and diversified equity strategies alike. Buying ahead of projected catalysts—from new laboratory launches to recurring dividend adjustments—aligns long-term investors with industry outperformance.

Is it the right time to buy Sonic Healthcare?

Summing up, Sonic Healthcare stands at a compelling inflection point: its resilient recent performance, positive sector dynamics, and leading competitive position in diagnostic services converge with robust technical, fundamental, and liquidity signals. Margins are expanding, innovation is accelerating, and the company is flagging a strong outlook reinforced by management confidence and analyst support. While no investment is without risks, the fundamentals, momentum, and upcoming catalysts for Sonic Healthcare seem to justify renewed investor interest and could mark the beginning of a bullish phase for the stock in 2025 and beyond. For Australian investors seeking a combination of sustainable growth, solid income, and dependable operational execution, Sonic Healthcare appears to represent an excellent opportunity to reconsider entry or further participation in a leader within the healthcare sector.

How to buy Sonic Healthcare stock in Australia?

Buying Sonic Healthcare stock online is a straightforward, secure process when you use a regulated Australian broker. Investors typically choose between two main methods: spot buying (direct share ownership) and trading via CFDs (contracts for difference). Both approaches match different investor profiles and risk tolerances, letting you access Sonic Healthcare from your computer or mobile. For details on the best platforms, see our broker comparison further down the page.

Spot buying

Buying Sonic Healthcare shares for cash means you directly own the stock and benefit from potential dividends and long-term growth. Most brokers charge a fixed commission per transaction, often around AUD 5 to AUD 15 per trade.

Gain scenario

For example, if the Sonic Healthcare share price is AUD 27.16, you can buy around 36 shares with a $1,000 stake, including a brokerage fee of around $5.

If the share price rises by 10%, your shares are now worth $1,100.

Result: +$100 gross gain, i.e. +10% on your investment.

Trading via CFD

CFDs on Sonic Healthcare allow you to trade share price movements with leverage, without owning the underlying stock. CFD trading involves fees like the spread (the difference between buy/sell price) and overnight financing for leveraged positions.

Example of a CFD position with leverage

You open a CFD position on Sonic Healthcare shares, with 5x leverage.

This gives you a market exposure of $5,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +$400 gain, on a bet of $1,000 (excluding fees).

Final advice

Before you invest, always compare broker fees and conditions to find the offer that fits your goals and style. Your best option depends on whether you prefer direct ownership for the longer term or a leveraged approach to amplify short-term moves. See our broker comparison below to make an informed choice.

Our 7 tips for buying Sonic Healthcare stock

The latest news about Sonic Healthcare

Sonic Healthcare shares advanced 1.72% over the last week, demonstrating ongoing investor confidence. This positive movement outperformed the sector average and was accompanied by robust average daily trading volumes above 1.3 million shares, indicating solid liquidity and continued appeal for local institutional and retail investors on the ASX.

Rising earnings and revenue momentum in H1 2025 underpin a positive local outlook. Sonic Healthcare reported AUD 4.67 billion in revenue (+8% YoY) and a 17% increase in net profit for the recent half-year, with Australia accounting for a significant portion. The results matched analyst consensus and highlighted resilient domestic demand for diagnostic and pathology services nationwide.

Technical buy signals accumulate after a series of bullish indicators on the ASX. Technical analysis reveals upward signals through multiple moving averages (20-, 50-, 100-, and 200-day) and a bullish MACD profile, while the RSI remains in neutral territory around 62. Recent price action surpassing key support levels solidifies the short-term positive structure for Sonic Healthcare on the local market.

Dividend yield remains healthy and policy has been maintained, benefitting Australian shareholders. A current dividend yield approaching 4% and a progressive payout policy—recently increased by 2.3% in H1 2025—reinforce Sonic Healthcare’s reliability among income-focused investors in Australia and signal company confidence in future cash flows.

International expansion is accelerating but Sydney remains global headquarters and operational hub. With the strategic acquisition of LADR in Germany now completed, Sonic Healthcare bolsters its international scale and recurring revenues while retaining operational leadership, decision-making, and regulatory compliance anchored firmly in Australia, keeping local interests at the centre of its growth story.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.