Trade-Ideas: West Pharmaceutical Services (WST) Is Today's New Lifetime High Stock

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 or Stephanie Link.

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 $10.6 million.
  • WST has traded 303,688 shares today.
  • WST is trading at a new lifetime high.

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More details on WST:

West Pharmaceutical Services, Inc. manufactures and sells components and systems for injectable drug delivery and plastic packaging, as well as delivery system components for the pharmaceutical, healthcare, and consumer products industries. The stock currently has a dividend yield of 1%. WST has a PE ratio of 29.1. Currently there is 1 analyst that rates West Pharmaceutical Services a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for West Pharmaceutical Services has been 124,500 shares per day over the past 30 days. West Pharmaceutical Services has a market cap of $2.8 billion and is part of the health care sector and health services industry. The stock has a beta of 0.73 and a short float of 1.8% with 4.69 days to cover. Shares are up 48.2% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • WST's revenue growth has slightly outpaced the industry average of 1.8%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • WEST PHARMACEUTICAL SVSC INC reported significant earnings per share improvement 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 $1.15 versus $1.08 in the prior year. This year, the market expects an improvement in earnings ($1.61 versus $1.15).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 93.6% when compared to the same quarter one year prior, rising from $15.60 million to $30.20 million.
  • Net operating cash flow has significantly increased by 52.29% to $79.50 million when compared to the same quarter last year. In addition, WEST PHARMACEUTICAL SVSC INC has also vastly surpassed the industry average cash flow growth rate of -37.82%.
  • 38.20% 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 8.76% trails the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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