Do You Believe in the Growth Potential of STERIS (STE)?

Upslope Capital Management, an investment management company, released its third-quarter investor letter. A copy of the letter can be downloaded here. The third quarter was a strong one for the fund despite unusual volatility in the macro environment. The fund returned +8.8% (net) in Q3 compared to +5.5% and +3.8% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Upslope Capital Management highlighted stocks such as STERIS plc (NYSE:STE) in the fourth quarter 2023 investor letter. Headquartered in Dublin, Ireland, STERIS plc (NYSE:STE) provides infection prevention products and services. The one-month return of STERIS plc (NYSE:STE) was -1.44%, and its shares gained 5.91% of their value over the last 52 weeks. On October 22, 2025, STERIS plc (NYSE:STE) stock closed at $242.37 per share, with a market capitalization of $23.73 billion.

Upslope Capital Management stated the following regarding STERIS plc (NYSE:STE) in its third quarter 2025 investor letter:

“STERIS plc (NYSE:STE) – leader in infection prevention, sterilization, and procedural solutions for healthcare providers, hospitals, pharmaceutical & bioprocess customers, and medical-device makers. Despite an overall economically defensive model with ~75% of sales from service and consumables, Steris has historically delivered high single-digit % organic growth and been active in M&A. Valuation is reasonable at 22x 2026 EPS (in line with medium-term history) and the balance sheet is strong at 1x net leverage (low end of historical range and an opportunity for capital deployment). Long-term secular tailwinds from an aging global population and continued innovation in healthcare procedures and devices/technology should be continued drivers of growth going forward.”

TriMas Corporation (TRS): Among Stocks Receiving the Most Insider Investment in March

STERIS plc (NYSE:STE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 50 hedge fund portfolios held STERIS plc (NYSE:STE) at the end of the second quarter, up from 46 in the previous quarter.  While we acknowledge the risk and potential of STERIS plc (NYSE:STE) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than STERIS plc (NYSE:STE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered STERIS plc (NYSE:STE) and shared the list of best defensive stocks to invest in according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 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.