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Mentor, Ohio-based STERIS plc (STE) provides infection prevention products and services worldwide. With a market cap of $24.1 billion, STERIS operates through Healthcare, Applied Sterilization Technologies (AST), and Life Sciences segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," STERIS fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical devices industry. It offers its products and services to hospitals, other healthcare providers, and pharmaceutical manufacturers.
STERIS touched its 52-week high of $248.24 on Sep. 13 and is currently trading 2.6% below that peak. STE gained 11.8% over the past three months, outpacing the S&P 500 Index’s ($SPX) 3% gains during the same time frame.
Over the longer term, STERIS has underperformed SPX. STE gained 5.3% over the past 52 weeks and 9.9% in 2024 compared to SPX’s 26.6% gains over the past year and 18.1% returns on a YTD basis.
To confirm the recent bullish trend, STE has been trading above its 50-day and 200-day moving averages since mid-July.
Shares of STERIS dipped 2.4% after the release of its Q2 earnings. The company reported a robust 8.1% annual revenue growth to $1.3 billion, exceeding Wall Street’s topline estimates. This was complemented by a substantial 17.7% growth in net income attributable to shareholders, totaling $145.4 million.
However, the company experienced a slight contraction in adjusted operating margins primarily due to a 9.5% rise in selling, general, and admin expenses to $335.6 million, which could have been one of the reasons behind the drop in share prices. Nevertheless, STE rebounded 2.6% in the next trading session.
STERIS’ competitor, Zimmer Biomet Holdings, Inc. (ZBH), has underperformed STE over the past year. ZBH has declined 12.4% over the past year and 12.7% in 2024.
Among the seven analysts covering the STE stock, the consensus rating is a “Moderate Buy.” The mean price target of $250 represents a potential upside of 3.4% from current price levels.
On the date of publication, Aditya Sarawgi 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.
