Trade-Ideas LLC identified

West Pharmaceutical Services

(

WST

) as a strong and under the radar 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 $17.0 million.
  • WST has traded 12.925399999999999778310666442848742008209228515625 options contracts today.
  • WST is making at least a new 3-day high.
  • WST has a PE ratio of 49.
  • WST is mentioned 1.32 times per day on StockTwits.
  • WST has not yet been mentioned on StockTwits today.
  • WST is currently in the upper 20% of its 1-year range.
  • WST is in the upper 35% of its 20-day range.
  • WST is in the upper 45% of its 5-day range.
  • WST is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on WST:

West Pharmaceutical Services, Inc. develops, manufactures, and sells components and systems for the packaging and delivery of injectable drugs, as well as delivery system components for the pharmaceutical, healthcare, and consumer products industries. The stock currently has a dividend yield of 0.8%. WST has a PE ratio of 49. Currently there is 1 analyst that rates 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 302,500 shares per day over the past 30 days. West Pharmaceutical Services has a market cap of $4.5 billion and is part of the health care sector and health services industry. The stock has a beta of 1.13 and a short float of 3.8% with 10.04 days to cover. Shares are up 16.9% year-to-date as of the close of trading on Friday.

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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 largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, WST has a quick ratio of 1.51, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has slightly increased to $68.80 million or 7.66% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.68%.
  • 37.94% 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. Despite the strong results of the gross profit margin, WST's net profit margin of 0.43% significantly trails the industry average.
  • WEST PHARMACEUTICAL SVSC INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WEST PHARMACEUTICAL SVSC INC increased its bottom line by earning $1.76 versus $1.58 in the prior year. This year, the market expects an improvement in earnings ($1.83 versus $1.76).
  • The revenue fell significantly faster than the industry average of 37.8%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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