Sigma Healthcare Ltd (ASX: SIG) shares continue their upward trajectory, trading higher today.

After closing at $3.00 yesterday, Sigma Healthcare shares are now trading at $3.03 in early afternoon trade on Tuesday, marking a 1.0% increase.

In comparison, the ASX 200 index has risen by just 0.2% during the same period.

This recent surge is reflective of Sigma Healthcare's overall performance, with its shares skyrocketing 113.4% over the past year. This significantly outpaces the 9.3% gain recorded by the benchmark index over the same timeframe.

Furthermore, eligible shareholders enjoyed partly franked dividends amounting to 1.8 cents per share over the year.

One of the primary drivers of this growth was Sigma's merger with Chemist Warehouse, a privately held company, completed in February of this year, which has propelled Sigma to a market capitalization of $35 billion.

Given this remarkable growth, the pressing question remains: Is Sigma Healthcare, a major player on the ASX 200, still a wise investment?

Mark Gardner from MPC Markets recently analyzed Sigma's stock, delivering his insights to The Bull.

"The healthcare giant's recent earnings update highlights the company's operational momentum and robust balance sheet," remarked Gardner, who has recommended holding Sigma Healthcare shares.

Gardner added:

"Its defensive business model, supported by a robust demand for healthcare services, positions it well to withstand potential market downturns, especially as broader equity markets appear susceptible to downside risks."

He concluded, "Although there appears to be limited upside in valuation in the near term, Sigma's stability and support in the index make it a prudent holding in the current market environment."

Recent developments for Sigma Healthcare include a significant 7.8% rise in share price on 27 August, following the release of its first full-year earnings results post-merger with Chemist Warehouse.

Notable highlights included an 82.4% year-on-year increase in normalized revenue to $6.00 billion. Meanwhile, normalized EBITDA grew by 41.4% to $884 million compared to FY 2024.

On the bottom line, Sigma reported a normalized net profit after tax (NPAT) of $579 million, reflecting a 40.1% increase.

Commenting on these stellar results, CEO Vikesh Ramsunder stated:

"The merger with Chemist Warehouse has created a stronger, more integrated healthcare business with enhanced scale, capabilities, and market reach. The FY25 results underscore the group's momentum and potential for sustained growth."