Company Overview - STERIS plc is valued at a market cap of $24.4 billion and is a leading global provider of infection prevention, decontamination, and surgical products and services, primarily serving the healthcare, pharmaceutical, and research industries [1] - The company is headquartered in Dublin, Ireland, and has been operational since 1985, supporting hospitals, laboratories, and pharmaceutical companies with sterilization and surgical solutions [1] Market Position - STERIS is classified as a "large-cap" stock, with a strong base of recurring revenues from consumables, service contracts, and equipment maintenance, providing stability and resilience [2] - The company has a global presence in over 100 countries and maintains a durable competitive edge in highly regulated and growing healthcare markets [2] Stock Performance - STERIS shares recently reached a 52-week high of $253 on September 12, with a 2.8% increase over the past three months, outperforming the iShares U.S. Medical Devices (IHI), which saw a 1.2% dip [3] - Year-to-date, STE shares have gained 20.6%, significantly outpacing IHI's 3.4% increase, and have returned 18% over the past 52 weeks compared to IHI's marginal increase [4] Financial Performance - On August 6, STERIS reported strong Q1 FY2026 results, with revenue rising 9% to $1.39 billion and adjusted EPS improving 15% to $2.34, driven by strength across segments, particularly Applied Sterilization Technologies and Healthcare [5] - The company benefited from margin expansion, firm pricing, and operational efficiencies, leading management to raise its full-year revenue growth outlook to 8–9% from a previous 6–7% and increase its free cash flow forecast to $820 million [5] Competitive Landscape - In contrast, key rival AdaptHealth Corp. (AHCO) has underperformed, with its stock decreasing by 19.3% over the past 52 weeks and a decline of 3.2% year-to-date [6]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F [3] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - Growth Score emphasizes a company's financial health and future growth potential based on earnings and cash flow [5] - Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [6] - VGM Score combines the three Style Scores to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +23.75% since 1988 [7] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Company Spotlight: Steris plc - Steris plc specializes in infection prevention and surgical support products, having rebranded after acquiring Synergy Health plc in 2015 [11] - Currently rated 3 (Hold) with a VGM Score of A, Steris is positioned as a potential growth investment [11] - The company forecasts a year-over-year earnings growth of 9.8% for the current fiscal year, supported by positive earnings estimate revisions [12] - Steris has an average earnings surprise of +2%, indicating strong performance relative to expectations [12]