3 Reasons to Avoid TFX and 1 Stock to Buy Instead

Radek Strnad Mon, September 28, 2026 at 1:50 PM EDT 3 min read **

• ^GSPC
• TFX

3 Reasons to Avoid TFX and 1 Stock to Buy Instead Even though Teleflex (currently trading at $122.08 per share) has gained 6.2% over the last six months, it has lagged the S&P 500's 21.4% return during that period. This may have investors wondering how to approach the situation.

Is there a buying opportunity in Teleflex, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free.

Why Do We Think Teleflex Will Underperform?

We don't have much confidence in Teleflex. Here are three reasons why there are better opportunities than TFX, plus one stock we'd rather own.

1. Weak Constant Currency Growth Points to Soft Demand

We can better understand Surgical Equipment & Consumables - Specialty companies by analyzing their constant currency revenue. This metric excludes currency movements, which are outside of Teleflex's control and are not indicative of underlying demand.

Over the last two years, Teleflex's constant currency revenue averaged 4% year-on-year growth. This performance slightly lagged the sector and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability.

Teleflex Constant Currency Revenue Growth

2. EPS Trending Down

We track the long-term change in earnings per share (EPS) because it highlights whether a company's growth is profitable.

Sadly for Teleflex, its EPS declined by 6.5% annually over the last five years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand.

Teleflex Trailing 12-Month EPS (Non-GAAP)

3. New Investments Fail to Bear Fruit as ROIC Declines

A company's ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity).

Unfortunately, Teleflex's ROIC has decreased over the last few years. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between.

Teleflex Trailing 12-Month Return On Invested Capital

Final Judgment

We cheer for all companies helping people live better, but in the case of Teleflex, we'll be cheering from the sidelines. With its shares underperforming the market lately, the stock trades at 13.1× forward P/E (or $122.08 per share). This valuation tells us it's a bit of a market darling with a lot of good news priced in - we think there are better opportunities elsewhere. We'd suggest looking at one of our all-time favorite software stocks.

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