≡ Menu

This Healthcare Stock’s Recent Pullback Is a Great Buying Opportunity

Why This Stock’s Recent Pullback Is a Great Buying Opportunity

When it comes to the nitty-gritty of cleaning, no one beats Steris (NYSE / STE). After a recent pullback, its stock looks like a buy.

Keeping clean and killing germs has dominated everyone’s lives for the past few years, even if most of us have cut back on the number of Clorox wipes we use to, say, sanitize our groceries. Hospitals, though, remain hypervigilant in their disinfecting regimes—no one will operate in a dirty room with a dull scalpel, particularly as hospitals are often ground zero for so-called antibiotic-resistant superbugs—and Steris (ticker: STE), a medical-equipment company specializing in sterilization and related products, is among the providers of choice.

f there’s a complaint about Steris, it’s that the stock is too expensive. At 22.3 times 12-month forward earnings, shares are four points higher than the S&P 500 index’s 18.3 times. That’s a price worth paying, however, for a company that is getting a boost as hospital procedures revert to their pre-Covid levels and supply chains return to normal, and one that also gets a large portion of its sales from recurring revenue because hospitals always need sterilization chemicals and disinfectants.

“It can be as simple as having its cleaning products in a hospital or research lab, and once those are put in place, Steris just keeps selling the soap suds,” says Sandy Villere III, a portfolio manager at wealth management firm Villere & Co. “It’s a nice place to hide in choppy waters.”

Ranfac Adds Steris as Secondary Sterilization Service  https://www.mddionline.com/supplier-news/ranfac-adds-steris-secondary-sterilization-service 

Infection Surveillance Solutions Market Is Booming Worldwide 2023-2030 | Baxter, BD, STERIS, Getinge AB, Medtronic, Koninklijke Philips N.V., Abbott https://www.digitaljournal.com/pr/news/coherent-market-insights/infection-surveillance-solutions-market-is-booming-worldwide-2023-2030-baxter-bd-steris-getinge-ab-medtronic-koninklijke-philips-n-v-abbott