Here's Why You Should Retain STERIS (STE) Stock for Now

Zacks05-02

STERIS plc STE is likely to grow in the coming quarters, backed by the promising recovery potential in the AST (Applied Sterilization Technologies) segment. The company also benefits from the growing ...

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The company also benefits from the growing ...</p>\n\n<a href=\"https://finance.yahoo.com/news/heres-why-retain-steris-ste-125800420.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Here's Why You Should Retain STERIS (STE) Stock for Now</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHere's Why You Should Retain STERIS (STE) Stock for Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-02 20:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/heres-why-retain-steris-ste-125800420.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>STERIS plc STE is likely to grow in the coming quarters, backed by the promising recovery potential in the AST (Applied Sterilization Technologies) segment. The company also benefits from the growing ...</p>\n\n<a href=\"https://finance.yahoo.com/news/heres-why-retain-steris-ste-125800420.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0433182093.SGD","symbol_name":"First Eagle Amundi International AS-C SGD","start_time":0,"source_url":"https://finance.yahoo.com/news/heres-why-retain-steris-ste-125800420.html","article_id":"2432612988","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/H9DYdttPy00EKBHhcxtlCA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/9f2a2e04a053cda7a8c096e532e43d28"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432612988","pubTimestamp":1714654680,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"STERIS plcSTE is likely to grow in the coming quarters, backed by the promising recovery potential in the AST  segment. The company also benefits from the growing healthcare and pharmaceutical sectors, fueled by an aging population and strategic acquisitions like the BD assets purchase. Strong solvency buoys optimism.Meanwhile, headwinds such as foreign currency risks and macroeconomic challenges raise worry for the stock.In the past year, shares of this Zacks Rank #3  company have increased 9.3% compared with the industry’s 1.8% growth and the S&P 500’s 24% rise.The renowned provider of infection prevention and other procedural products and services has a market capitalization of $20.21 billion. The company has an earnings yield of 4.63% compared to the industry’s -5.11%. In the trailing four quarters, STE delivered an average earnings surprise of 3.96%.In August 2023, the company purchased the surgical instrumentation, laparoscopic instrumentation and sterilization container assets f","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","SG9999014021.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) ACC","LU0528227936.USD":"富达环球人口趋势基金A-ACC","LU2491049909.HKD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (HKD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","LU0128525929.USD":"TEMPLETON GLOBAL \"A\" (USD) ACC","HONE":"HarborOne Bancorp, Inc.","BK4185":"保健护理机构","LU2491050071.SGD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (SGDHDG) ACC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU1989771016.USD":"东方汇理环球老龄化投资基金 A2 Acc","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","LU2491050154.USD":"WELLINGTON SUSTAINABLE OUTCOMES \"A\" (USD) ACC","LU1023059063.AUD":"BGF WORLD HEALTHSCIENCE \"A2\" (AUDHDG) ACC","BSX":"波士顿科学","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU1057294990.SGD":"Blackrock World Healthscience A2 SGD-H","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","SG9999014039.USD":"UNITED GLOBAL DURABLE EQUITIES (USDHDG) INC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","IE00BJT1NW94.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"A2\" (SGDHDG) ACC","SG9999014005.SGD":"United Global Durable Equities Fund Acc SGD","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","LU1261432733.SGD":"Fidelity World A-ACC-SGD","LU2362540622.SGD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (SGDHDG) ACC","SG9999014013.SGD":"United Global Durable Equities Fund Dis SGD","LU1989764748.USD":"东方汇理环球颠覆性机遇A2 Acc","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","LU1804176565.USD":"EASTSPRING INV GLOBAL GROWTH EQUITY \"A\" (USD) ACC","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","BK4082":"医疗保健设备","BK4167":"医疗保健技术","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","LU0882574055.USD":"富达全球健康医疗A ACC","LU1267930573.SGD":"TEMPLETON GLOBAL \"AA\" (SGD) ACC A","LU0122379950.USD":"贝莱德世界健康科学A2","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","IE0002141913.USD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (USD) ACC","INSP":"Inspire Medical Systems","LU0985489474.SGD":"First Eagle Amundi International AHS-C SGD-H","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","IE00BJJMRZ35.SGD":"JANUS HENDERSON GLOBAL LIFE SCIENCES \"I2\" (SGDHDG) ACC","LU0708994859.HKD":"TEMPLETON GLOBAL \"A\" (HKD) ACC","STE":"思泰瑞医疗","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","LU1201861249.SGD":"Natixis Harris Associates US Equity PA SGD-H","LU2362541273.HKD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (HKD) ACC","HCA":"HCA控股","LU2362541513.USD":"WELLINGTON NEXT GENERATION GLOBAL EQUITY \"A\" (USD) ACC"},"translate_title":"以下是你现在应该保留STERIS（STE）股票的原因","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"STE":1,"BSX":1,"INSP":1,"HCA":0.9,"HONE":0.9},"content_text":"STERIS plc STE is likely to grow in the coming quarters, backed by the promising recovery potential in the AST (Applied Sterilization Technologies) segment. The company also benefits from the growing healthcare and pharmaceutical sectors, fueled by an aging population and strategic acquisitions like the BD assets purchase. Strong solvency buoys optimism.\nMeanwhile, headwinds such as foreign currency risks and macroeconomic challenges raise worry for the stock.\nIn the past year, shares of this Zacks Rank #3 (Hold) company have increased 9.3% compared with the industry’s 1.8% growth and the S&P 500’s 24% rise.\nThe renowned provider of infection prevention and other procedural products and services has a market capitalization of $20.21 billion. The company has an earnings yield of 4.63% compared to the industry’s -5.11%. In the trailing four quarters, STE delivered an average earnings surprise of 3.96%.\nLet’s delve deeper.\nFactors at Play\nStrong Rebound Prospects of the AST Segment: This technology-neutral contract sterilization service successfully offers a wide range of sterilization modalities through a worldwide network of more than 50 contract sterilization and laboratory facilities. STERIS, particularly, is gaining success with ethylene oxide (EO) sterilization. STERIS’ customers in this business are mostly the manufacturers of single-use, sterile technologies that are used in aseptic manufacturing of vaccines and biopharmaceuticals.\nDuring the third quarter of fiscal 2024, revenues for the AST segment increased 6% year over year. This performance reflected 5% growth in service revenues and 42% growth in capital equipment revenues. Earlier, management noted that MedTech inventory destocking is temporary and is not expected to continue beyond the first half of 2024.\nIn the fiscal third quarter, the company seemingly witnessed positive signs of recovery in the MedTech demand. The markets across the United States reflected an improving procedure environment and the burndown of customer inventory, resulting in good growth.\nProgress in Healthcare and Pharmaceutical Industries: STERIS generates the majority of its revenues from the healthcare and pharmaceutical sectors. Growth in these industries is driven by the aging global population as an increasing number of individuals are entering their prime healthcare consumption years.\nImage Source: Zacks Investment Research\nFactors such as advancements in healthcare delivery, technological acceptance, government policies and economic conditions also play a role. With life expectancy on the rise globally, a larger aging population increases the demand for medical procedures. This translates into higher consumption of single-use medical devices and surgical kits processed by STERIS.\nIn August 2023, the company purchased the surgical instrumentation, laparoscopic instrumentation and sterilization container assets from Becton, Dickinson and Company or BD, enhancing its Healthcare product offerings. This acquisition positively impacted the company's Healthcare segment operating income in the fiscal third quarter.\nOverall Solid Solvency Position: STERIS ended the third quarter of fiscal 2024 with $195.6 million in cash and cash equivalents and a near-term payable debt of $78 million. Long-term debt decreased to $3.23 billion from $3.36 billion at the end of the fiscal second quarter. While the times interest earned ratio declined to 5.9% in the third quarter, the total debt-to-capital ratio improved to 34% from 35.7% in the second quarter of fiscal 2024.\nDownsides\nForeign Currency Risks: STERIS’ business is exposed to the impact of foreign currency exchange fluctuations. With nearly 30% of the company’s revenues and 30% of the cost of revenues being generated outside the United States, foreign currency exchange rate fluctuations can significantly impact its financial position, results of operations and competitive position. Geopolitical instability, such as Russia's invasion of Ukraine, has worsened this risk, leading to volatility in capital markets and foreign exchange rates. In fiscal 2023, currency fluctuations negatively impacted STE's revenues by approximately $109.4 million.\nMacroeconomic Problems: The challenging global macroeconomic conditions are impacting the company’s financial performance. Governments and insurance companies are seeking ways to control healthcare costs, which could affect healthcare players like STERIS. Increases in raw material prices or supply chain disruptions could hinder production or increase production costs.\nIn addition, economic and market volatility have been affecting the investment portfolio of STERIS’ legacy defined benefit pension plan. These factors are driving up the company's operating expenses and could slow its growth. The company’s overall adjusted operating expenses increased 16.9% year over year in the third quarter.\nEstimate Trends\nIn the past 30 days, the Zacks Consensus Estimate for STERIS’ fiscal 2024 earnings has remained constant at $8.67.\nThe Zacks Consensus Estimate for fiscal 2024 revenues is pegged at $5.47 billion, which suggests 10.4% growth from the fiscal 2023 reported number.\nKey Picks\nSome better-ranked stocks in the broader medical space are Inspire Medical System INSP, HCA Healthcare HCA and Boston Scientific BSX.\nInspire Medical System has an estimated 2024 earnings growth rate of 51.4% compared with the industry’s 20.3%. INSP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 353.55%. Its shares have decreased 11.4% compared with the industry’s 23.6% fall in the past year.\nINSP sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.\nHCA Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term earnings growth rate of 10.1% compared to the industry’s 9.9%. Shares of the company have increased 11.2% compared with the industry’s 23.9% rise over the past year.\nHCA’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 5.64%. In the last reported quarter, it delivered an average earnings surprise of 6.99%.\nBoston Scientific, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 10.9%. BSX shares have increased 37% against the industry’s 4% fall over the past year.\nBSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.49%. In the last reported quarter, it delivered an average earnings surprise of 9.8%.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nBoston Scientific Corporation (BSX) : Free Stock Analysis Report\nHCA Healthcare, Inc. (HCA) : Free Stock Analysis Report\nSTERIS plc (STE) : Free Stock Analysis Report\nInspire Medical Systems, Inc. (INSP) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432612988"}