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Sotera Health Company (SHC) Stock Analysis

Temp Headwind edge

Buy WaitVALUE-TRAP 2/5Moderate Confidence

Healthcare · Diagnostics & Research

Wait for pullback to $15.06. Weak momentum — blocks BUY_NOW at $15.10. Engine's entry $15.06 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Leverage penalty (D/E 3.6): -1.5; Negative momentum.

Sotera Health provides mission-critical outsourced sterilization services (Sterigenics gamma/EO/E-beam; Nordion Co-60 supply) and microbiological lab testing/advisory services (Nelson Labs) for medical device and pharmaceutical companies across 62 global facilities. Services are... Read more

$15.10+17.2% A.UpsideScore 5.9/10#1 of 26 Diagnostics & Research
QualityF-score8 / 9FCF yield3.33%
Entry $15.06(Ma50 Sticky)Stop $14.11Target $17.51(analyst − 13%)A.R:R 2.5:1Setup A.R:R 2.7:1
Analyst target$20.13+33.3%8 analysts
$17.51our TP
$15.10price
$20.13mean
$24

Wait for pullback to $15.06. Weak momentum — blocks BUY_NOW at $15.10. Engine's entry $15.06 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Leverage penalty (D/E 3.6): -1.5; Negative momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Growth is cheap relative to earnings, but the chart hasn't confirmed yet (PEG 0.09, quality 7.8/10, growth 7.5/10). Score 5.9/10, moderate confidence.

Passes 7/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 78d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum. Suitability: aggressive.

Recent Developments — Sotera Health Company

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
V7 quality resilience bonus: +0.2 (Q=7.8 in RISK_OFF)
Sector modifier (Healthcare): +0.5
Strong earnings beat streak (3/4)
Risks
Leverage penalty (D/E 3.6): -1.5
Negative momentum
Value-trap signals (2/5): High leverage (D/E 3.6), Material insider selling (5 sells, 27.41% of cap)

Key Metrics

P/E (TTM)37.1
P/E (Fwd)14.4
Mkt Cap$4.3B
EV/EBITDA11.2
Profit Mgn9.9%
ROE22.7%
Rev Growth10.0%
Beta1.82
DividendNone
Rating analysts15

Quality Signals

Piotroski F8/9MoatNarrow

Options Flow

IV69%elevated

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

1 floor-breaker

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Macd
2.6
Ma Position
4.2
Rsi
4.5
Volume distribution (falling OBV)Below 200-MA but MA still rising (+3.9%/30d) — pullback in uptrend, not confirmed weakness
GatesMomentum 2.5<4.5A.R:R 2.5 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 78d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
41 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $14.26Resistance $16.17

Price Targets

$14
$15
$18
A.Upside+16.0%
A.R:R2.5:1
Setup A.R:R (at entry)2.7:1

Position Sizing

ConvictionHigh conviction
Suggested %1.4%
Max %2.8%
RegimeRisk-Off

Risk Alerts

! Momentum score 2.5/10 — below 4.5 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-06 (78d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SHC stock a buy right now?

Wait for pullback to $15.06. Weak momentum — blocks BUY_NOW at $15.10. Engine's entry $15.06 (Ma50 Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Leverage penalty (D/E 3.6): -1.5; Negative momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Growth is cheap relative to earnings, but the chart hasn't confirmed yet (PEG 0.09, quality 7.8/10, growth 7.5/10). Target $17.51 (+16.0%), stop $14.11 (−7.0%), Setup A.R:R 2.7:1. Score 5.9/10, moderate confidence.

What is the SHC stock price target?

Take-profit target: $17.51 (+17.2% upside). Target $17.51 (+16.0%), stop $14.11 (−7.0%), Setup A.R:R 2.7:1. Stop-loss: $14.11.

What are the risks of investing in SHC?

Leverage penalty (D/E 3.6): -1.5; Negative momentum; Value-trap signals (2/5): High leverage (D/E 3.6), Material insider selling (5 sells, 27.41% of cap).

Is SHC overvalued or undervalued?

Sotera Health Company trades at a P/E of 37.1 (forward 14.4). TrendMatrix value score: 7.3/10. Verdict: Buy (Wait for Entry).

What do analysts say about SHC?

15 analysts cover SHC with a consensus score of 4.2/5. Average price target: $20.

What does Sotera Health Company do?Sotera Health provides mission-critical outsourced sterilization services (Sterigenics gamma/EO/E-beam; Nordion Co-60...

Sotera Health provides mission-critical outsourced sterilization services (Sterigenics gamma/EO/E-beam; Nordion Co-60 supply) and microbiological lab testing/advisory services (Nelson Labs) for medical device and pharmaceutical companies across 62 global facilities. Services are a regulatory requirement for customers, generating multi-year contract revenue; over 40 of the top 50 medical device companies are served. The company faces ongoing EO emissions tort litigation in multiple states.

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