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Valued at a market cap of $21.7 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, 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, specializing in sterilization and surgical products for the healthcare system.
However, the company dropped 10.1% from its 52-week high of $248.24. Over the past three months, STERIS has surged 6.2%, outperforming the broader Dow Jones Industrials Average's ($DOWI) 2% decline.
Longer term, shares of STE have gained 7.2% on a YTD basis, surpassing DOWI's 1.3% decrease. However, STERIS has declined 2.9% over the past 52 weeks, whereas the Dow Jones rose 5.5% over the same time frame.
Despite a few fluctuations, STE has been trading below its 50-day and 200-day moving averages since October 2024.
Shares of STE rose 2.1% following its Q3 2025 results on Feb. 5, driven by solid adjusted EPS of $2.32, up 9.9% year-over-year and in line with estimates. Gross margin expanded by 138 basis points to 44.5%. The Healthcare and AST segments performed well, growing 7% and 10%, respectively, with strong service and consumable revenue contributions. Additionally, robust operating cash flow of $887.3 million and a steady full-year EPS guidance range of $9.05 - $9.15 boosted investor confidence.
Further, in comparison, rival AdaptHealth Corp. (AHCO) has lagged behind STE. AHCO stock has decreased 9.8% over the past 52 weeks and saw a rise of 4.9% on a YTD basis.
Despite its underperformance compared to the Dow over the past year, analysts are bullish about STE’s prospects. With a consensus “Strong Buy” rating from seven analysts, the stock is currently trading below the mean price target of $256.67.
