Trade-Ideas LLC identified

West Pharmaceutical Services

(

WST

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified West Pharmaceutical Services as such a stock due to the following factors:

  • WST has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $19.2 million.
  • WST has traded 4,310 shares today.
  • WST is trading at a new lifetime high.

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More details on WST:

West Pharmaceutical Services, Inc. develops, manufactures, and sells packaging and delivery systems in the United States, Germany, France, Other European countries, and internationally. The stock currently has a dividend yield of 0.7%. WST has a PE ratio of 5. Currently there are 3 analysts that rate West Pharmaceutical Services a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for West Pharmaceutical Services has been 369,800 shares per day over the past 30 days. West Pharmaceutical Services has a market cap of $4.7 billion and is part of the health care sector and health services industry. The stock has a beta of 1.11 and a short float of 5.2% with 11.39 days to cover. Shares are up 8.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates West Pharmaceutical Services as a

buy

. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • WST's revenue growth trails the industry average of 29.7%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • WST's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.45, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to $68.00 million or 47.82% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.22%.
  • 39.73% is the gross profit margin for WEST PHARMACEUTICAL SVSC INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.28% trails the industry average.

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