STERIS plc (STE) Slid on Cautious Health Care Sentiment

The London Company, an investment management company, released “The London Company Mid Cap Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. During 4Q, U.S. equities rose, with most major indices showing positive gains. The portfolio returned 1.8% (-1.8% net) during the quarter compared to a 0.6% increase for the Russell Midcap Index. Both stock selection and sector exposure were headwinds to relative performance of the strategy in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

In its fourth quarter 2024 investor letter, The London Company Mid Cap Strategy emphasized stocks such as STERIS plc (NYSE:STE). Headquartered in Dublin, Ireland, STERIS plc (NYSE:STE) provides infection prevention products and services. The one-month return of STERIS plc (NYSE:STE) was 1.59%, and its shares lost 3.26% of their value over the last 52 weeks. On February 25, 2025, STERIS plc (NYSE:STE) stock closed at $223.79 per share with a market capitalization of $21.988 billion.

The London Company Mid Cap Strategy stated the following regarding STERIS plc (NYSE:STE) in its Q4 2024 investor letter:

“STERIS plc (NYSE:STE) – STE underperformed in 4Q reflecting cautious health care sentiment, modestly lower growth for medical device sterilization, and the re-emergence of litigation concerns. After a noisy few years, we believe STE is getting back onto a steady trajectory of mid-to-high single digit revenue growth and low double-digit earnings growth. Our view of STE’s competitive positioning in the medical sterilization business is unchanged, and we do not expect litigation to have a material impact on the value of the company.”

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STERIS plc (NYSE:STE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held STERIS plc (NYSE:STE) at the end of the fourth quarter compared to 37 in the third quarter. While we acknowledge the potential of STERIS plc (NYSE:STE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed STERIS plc (NYSE:STE) and shared Meridian Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.