West Pharmaceutical Services (WST) Outperforms Market Gains: What You Need To Know


In the last trading session, West Pharmaceutical Services (WST) closed at $ 459.84, marking a movement of + 1.37% from the previous day. The change topped the S&P 500’s 0.62% gain on the day. Elsewhere, the Dow Jones gained 0.55%, while the tech-rich Nasdaq lost 0.03%.

Prior to today’s stock market, shares of the medical device company had gained 6.02% in the past month. This topped the medical sector’s 2.92% gain and the S&P 500’s 0.87% gain during this period.

West Pharmaceutical Services will look to show strength as its next earnings release nears. The company is expected to post EPS of $ 1.92, up 43.28% from the previous year quarter. Meanwhile, our latest consensus estimate projects revenue of $ 709.1 million, up 22.22% from the previous year’s quarter.

Zacks’ consensus estimates for WST’s full year forecast earnings of $ 8.49 per share and revenue of $ 2.81 billion. These results would represent year-over-year variations of + 78.36% and + 30.88%, respectively.

It’s also important to note the recent changes to West Pharmaceutical Services analyst estimates. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to stock movements close to the team. We have developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and provides a clear and actionable scoring model.

The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. Over last month, the Zacks Consensus EPS estimate rose 0.69%. West Pharmaceutical Services is currently a Zacks Rank # 2 (Buy).

Valuation is also important, so investors should note that West Pharmaceutical Services currently has a forward P / E ratio of 54.16. This valuation marks a premium over the average forward P / E of its sector of 20.06.

Meanwhile, WST’s PEG ratio is currently 1.96. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. The WST industry had an average PEG ratio of 1.52 at yesterday’s close.

The Medical – Dental Supplies industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 111, which places it in the top 44% of 250+ industries.

The Zacks Industry Rankings include is ranked from best to worst in terms of the average Zacks rankings of individual companies in each of these industries. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and more, at Zacks.com.

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