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Valued at a market cap of $23.7 billion, STERIS plc (STE) is a provider of products and services that support patient care with an emphasis on infection prevention. Based in Mentor, Ohio, it operates through three segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and STERIS fits this description perfectly. STE is a leading provider of innovative healthcare and life sciences products and services, and has established itself as a leader in sterilization and surgical products for the healthcare system.
However, STE shares have dropped 6.2% from their 52-week high of $252.79 met on May 19. STERIS has surged 4.1% over the past three months, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 9.1% decline during the same time frame.
Shares of STE have gained 15.3% on a YTD basis, surpassing XLV’s 3% decrease. Additionally, STERIS has returned 9.7% over the past 52 weeks, whereas the XLV has fallen 8.4% over the same time frame.
STE has been trading above its 50-day and 200-day moving averages since early May, indicating an uptrend.
Following the release of its Q4 earnings on May 14, STE shares jumped 8.5% in the next trading session. The company saw a 4.3% rise in revenue, reaching $1.5 billion, as strong contributions from its Healthcare and AST segments helped offset weakness in Life Sciences. Adjusted EPS stood at $2.74, up 6.2% year-over-year, with profitability gains driven by volume growth, better pricing, and ongoing restructuring benefits.
In contrast, key rival AdaptHealth Corp. (AHCO) has lagged behind STE. AHCO stock has decreased by 24.6% over the past 52 weeks and has seen a decline of 10.6% on a year-to-date (YTD) basis.
STE holds a consensus rating of “Moderate Buy” from eight analysts, with an average price target of $272.14, implying an upside potential of 14.8% from its current trading levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
