Shares in West Pharmaceutical Services, Inc. show a positive technical chart pattern over the medium term, which suggests that the rising trend should be followed.
Strengths
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 48% by 2022.
● The company returns high margins, thereby supporting business profitability.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 200.73 USD
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The company's earnings releases usually do not meet expectations.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 61.76 times its estimated earnings per share for the ongoing year.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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West Pharmaceutical Services, Inc. specializes in the design, manufacture and marketing of components and systems for the containment and delivery of injectable drugs. The group offers packaging, components for syringes, cartridge systems, auto-injection devices, accessories for vials, specialty components, etc. Net sales break down by family of products as follows:
- own manufactured products (81.8%);
- products manufactured under contract (18.2%).
Net sales are distributed geographically as follows: the United States (42.3%), Germany (16.8%), Ireland (8.7%), France (7.5%), Europe (12.1%) and other (12.6%).