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STERIS plc

STERIS plc

STE
$217.84USD↓-1.49%-3.29 today

MARKET CAP

21.2B

P/E (TTM)

21.4x

FWD P/E

18.9x

DAY RANGE

$217 – $223

52W RANGE

$195
$269

AI Summary

Stalk
StalkMedium

STE is in an early Stage 1 consolidation with a Bullish Pivot Point signaling structural repair and mean reversion potential. Medium-term bias is Bullish under mean reversion eligibility, but price is extended above the rising 9/21 EMA ribbon and is overbought. Execution should be deferred (Stalk) for a pullback into the 9/21 EMA support zone before initiating a position. Primary risks include failure to hold above the EMAs and a breakdown back into the consolidation band.

  • ↑Revenue rose 9% to ~$6B in FY26, guiding 7–8% growth for FY27
  • ↑Free cash flow of $982.9M enables new $1B share buyback
  • ↓Tariffs and inflation cut gross margin by 30 bps to 44%
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

STERIS plc (NYSE: STE) is a leading provider of infection prevention and sterile processing solutions within the healthcare and life sciences sectors. They specialize in medical equipment and sterilization products, focusing on enhancing patient safety and operational efficiency in healthcare facilities globally. As part of the growing healthcare sector, STERIS is strategically positioned to benefit from the rebound in medical procedures following the disruptions caused by the pandemic, thus actively participating in the surge of demand for hygiene and medical standards.

Bull says

  • ↑Revenue rose 9% to ~$6B in FY26, guiding 7–8% growth for FY27
  • ↑Free cash flow of $982.9M enables new $1B share buyback
  • ↑EBIT margin target up ~50 bps in FY27 via operational improvements
  • ↑Defensive healthcare demand drives pricing power amid tariffs
  • ↑Strong profitability and manageable leverage support resilience
  • ↑Dividend yield ~2.66% attracts income-focused investors

Bear says

  • ↓Tariffs and inflation cut gross margin by 30 bps to 44%
  • ↓Growth outlook weak; management expects slow start in H1 FY27
  • ↓High short interest (~25%) and negative momentum signal bearish sentiment
  • ↓High sensitivity to oil and rates heightens macro risk
  • ↓Declining analyst revisions and weak growth imply stagnation
  • ↓Rising labor and tariff costs may pressure earnings below guide

Investment themes with STE

Medical Devices↑ +0.12%

Devices and instruments for medical treatment

ISRG · ABT · SYK

Earnings Call · Q4 2026 · Mgmt. Guidance

Updated 05-13-2026neutral

Transcript signals

Bull points

  • we've significantly invested in our supply chain resources here at Staris. We've also done a lot of work to mitigate single source supply.
  • we're much more resilient today than we were when we had the exposures a few years back, and we feel pretty good about our position.
  • But the real star in that business is our consumables, growing 8%, high margin business, really continues to deliver for us. It's critically important for the performance of the sector, of our segment rather.

Bear points

  • Because of the withholding tax, we believe a measured approach is the right answer. We have this incremental hurdle when we do buybacks to overcome.
  • If this war goes on for a long time and oil stays high for the whole year, we may be a little short.
  • I think you're suggesting that you're consolidating the number of facilities.
Read full transcript analysis ›