STE Stock Analysis — Steris
Sector: Healthcare
AI Verdict
Steris trades at 18.1x next year's earnings with unusually high growth expectations, so it's cheap for the growth you're getting if its hospital integration moat holds up.
Competitive Moat
Steris manufactures sterilization and infection prevention equipment used by hospitals and pharmaceutical firms, with a defensible position due to regulatory hurdles and deep integration into hospital workflows. Its installed base and service contracts create switching costs that make it hard for competitors to displace.
Summary
Steris is notable right now for a projected +51.8% jump in earnings, with the stock trading at just 18.1x next year's expected profits.
Where It Stands
Steris delivered a -8.15% return over the past year, trades at 18.1x forward earnings (below the healthcare sector median of 22x), and has an RSI of 62.7 signaling neutral-to-elevated momentum.
Key Metrics
- RSI: 62.7 — Near Overbought
- Trailing P/E: 27.5x
- Forward P/E: 18.1x
- PEG Ratio: 0.56
- Earnings Growth: +0.5%
- Revenue Growth: +0.1%
- Market Cap: $21.3B
- Dividend Yield: 0.01%
- 1-Year Return: -8.15%
- 52-Week High: $269.44
- 52-Week Low: $195.14
Analyst Consensus
10 Buy · 5 Hold · 0 Sell (15 analysts)
Bull Case
With analysts expecting +51.8% EPS growth and a forward P/E of 18.1x, you're paying a low price for substantial earnings acceleration.
Bear Case
If the P/E reverts from 27.5x trailing to the sector median of 22x, shares could see further downside despite the RSI nearing overbought territory at 62.7.
Catalyst to Watch
Watch for quarterly earnings delivery on the expected +51.8% EPS growth — a miss could quickly erase the valuation discount.