STERIS (STE): Buy, Sell, or Hold Post Q4 Earnings?

Kayode Omotosho Tue, May 5, 2026 at 3:08 AM EDT 2 min read **

• STE
• ^GSPC

Over the past six months, STERIS’s stock price fell to $214.47. Shareholders have lost 11.3% of their capital, which is disappointing considering the S&P 500 has climbed by 6.4%. This may have investors wondering how to approach the situation.

Is now the time to buy STERIS, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

More from Yahoo Scout How does STERIS's valuation compare to peers?

What are STERIS's return on investment challenges?

Why has STERIS stock declined 11.3% recently?

What concerns exist about STERIS's growth initiatives?

Why Is STERIS Not Exciting?

Despite the more favorable entry price, we're cautious about STERIS. Here is one reason we avoid STE and a stock we'd rather own.

Previous Growth Initiatives Haven’t Impressed

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? A company’s ROIC explains this by showing how much operating profit it makes compared to the money it has raised (debt and equity).

STERIS historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 5%, somewhat low compared to the best healthcare companies that consistently pump out 20%+.

STERIS Trailing 12-Month Return On Invested Capital

Final Judgment

STERIS’s business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 20.1× forward P/E (or $214.47 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We're pretty confident there are superior stocks to buy right now. We’d recommend looking at one of our top digital advertising picks.

Stocks We Like More Than STERIS

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