STE Stock Analysis — Steris
Sector: Healthcare
AI Verdict
Steris trades at 20.4x forward earnings with a big growth forecast, but the overbought RSI and recent underperformance mean you’re paying up for a rebound story that could snap back hard if expectations slip.
Competitive Moat
Steris provides sterilization, infection prevention, and surgical products to hospitals and pharmaceutical manufacturers, embedding itself deeply in essential healthcare workflows. Its moat comes from regulatory approvals, high switching costs, and embedded service contracts that make it difficult for customers to change providers without operational risk.
Summary
Steris is flashing an overbought RSI of 79.9 just as analysts expect a 47.2% jump in earnings next year.
Where It Stands
Steris has lagged with a -2.22% one-year return, trades at 20.4x forward earnings versus the healthcare sector median of 22x, but its RSI of 79.9 signals overbought territory and short-term pullback risk.
Key Metrics
- RSI: 79.9 — Overbought
- Trailing P/E: 30.0x
- Forward P/E: 20.4x
- PEG Ratio: 0.64
- Earnings Growth: +0.5%
- Revenue Growth: +0.1%
- Market Cap: $23.1B
- Dividend Yield: 0.01%
- 1-Year Return: -2.22%
- 52-Week High: $269.44
- 52-Week Low: $195.14
Analyst Consensus
11 Buy · 5 Hold · 0 Sell (16 analysts)
Bull Case
You’re paying 20.4x next year’s earnings for a forecasted 47.2% EPS growth, which is cheap for the growth on offer if Steris’s regulatory and service contract moat holds.
Bear Case
With an RSI at 79.9, a pullback to neutral (RSI 65) could mean a 15–20% drop from current levels even if fundamentals remain intact.
Catalyst to Watch
Watch for upcoming earnings releases—confirmation of the 47.2% EPS growth outlook could justify the current premium, while any guidance cut risks a sharp correction.