STE

Sector Performance: The health care sector, particularly medical devices, is showing signs of recovery, with the SPDR Health Care Select Sector ETF (XLV) and biotech stocks performing well, while Idexx Labs (IDXX) has reached all-time highs.

Stock Analysis: Steris (STE), a leader in sterilization and infection prevention, is highlighted as a strong investment opportunity, showing a favorable risk/reward setup with potential gains of 20%-25% as it breaks above key resistance levels.

Market Trends: The medical device sector is gaining traction, with Steris outperforming the sector average, indicating a rotation of investor interest towards this area.

Investment Advice: The content emphasizes the importance of setting risk parameters and suggests consulting a financial advisor before making investment decisions, as the information provided is general and not tailored to individual circumstances.

Health Care Sector Performance: The S&P 500 Health Care Sector saw a significant gain of 9.1% in November, indicating a potential cyclical uptrend and a bullish outlook for 2026.

Medical Device Stocks: Notable breakouts in medical device stocks, such as IDEXX Laboratories and STERIS PLC, along with turnaround opportunities in GE Healthcare and Medtronic, suggest positive momentum in this segment.

iShares U.S. Medical Devices ETF (IHI): The IHI ETF shows a bullish cup-and-handle pattern and has recently broken above resistance, indicating a potential for new all-time highs and a strong performance in the coming months.

Long-Term Outlook: Despite a lower long-term trend compared to the S&P 500, signs of downside exhaustion in medical device stocks suggest improved performance relative to the broader market, supporting a positive outlook for 2026.