Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 $22.3 million.
  • WST has traded 4,134 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 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 33.1. 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 322,100 shares per day over the past 30 days. West Pharmaceutical Services has a market cap of $4.2 billion and is part of the health care sector and health services industry. The stock has a beta of 0.84 and a short float of 2.3% with 4.23 days to cover. Shares are up 8.3% 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • WST's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 2.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.35, 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 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 30.30% and other important driving factors, this stock has surged by 34.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • WEST PHARMACEUTICAL SVSC INC has improved earnings per share by 30.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Health Care Equipment & Supplies industry average. The net income increased by 33.0% when compared to the same quarter one year prior, rising from $23.60 million to $31.40 million.

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