Steris Rose 4% on Positive 2016 Outlook
How IHI Is Performing as We Near the End of 2015
IHI mid caps gain 1.2%
The mid-cap stocks of the iShares US Medical Devices ETF (IHI) returned 1.2% on December 22, 2015. They outperformed the SPDR S&P 500 ETF (SPY) and IHI as well. The mid caps were driven by some good performances from stocks like Nuvasive (NUVA), Wright Medical Group (WMGI), and Globus Medical (GMED), which gave returns of 2.6%, 2.6%, and 2%, respectively. Also, 15 stocks out of the 18 mid-cap stocks held by IHI gave positive returns and only three stocks ended up in the red. The mid-cap stocks of IHI carry a combined weight of 19% in IHI’s portfolio.
The above graph reflects the performance of IHI’s mid caps compared with IHI and SPY on a day-to-day basis. So far in December 2015, IHI mid caps have returned 0.9%, IHI has returned 0.35%, and SPY has returned -2.4%.
Steris stock spiked 4%
Steris (STE) gained 4% on December 22, 2015. The stock went up on its outlook for the full-year fiscal 2016. Steris announced that it anticipates the following:
growth of 21% to 22% over 2015 full-year revenue of $1.9 billion
adjusted earnings per share in the range of $3.48 to $3.55
2016 effective tax rate of 27.5%
free cash flow of $155 million
It also mentioned that from 3Q16 onwards, STE will report results in four business segments: healthcare products, healthcare specialty services, applied sterilization technologies, and life sciences.
STE closed at $74.01 and was trading above its 20-day, 50-day, and 100-day moving averages. Year-to-date (or YTD), STE has returned 14.1%. STE has a trailing-12-month price-to-earnings of 39.8x. The book value of the stock is $18.21 per share. With its current value, the stock is trading at a price-to-book value of 4.06x. STE has a weight of ~1.7% of IHI’s portfolio.
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