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Strength Seen in West Pharmaceutical (WST): Can Its 5.7% Jump Turn into More Strength?

Zacks Equity Research
·2-min read

West Pharmaceutical Services (WST) shares ended the last trading session 5.7% higher at $377.99. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.1% loss over the past four weeks.

Shares of the company are demonstrating an uptrend since October 2023, which is likely to continue. The recent surge can be attributed to the positive sentiments of investors on the back of its improving fundamentals.

This medical device company is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of -34.3%. Revenues are expected to be $674.44 million, down 5.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

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For West Pharmaceutical, the consensus EPS estimate for the quarter has been revised 39.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on WST going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

West Pharmaceutical belongs to the Zacks Medical - Dental Supplies industry. Another stock from the same industry, Staar Surgical (STAA), closed the last trading session 2.9% lower at $37.64. Over the past month, STAA has returned 23.7%.

Staar Surgical's consensus EPS estimate for the upcoming report has changed -223.3% over the past month to $0.05. Compared to the company's year-ago EPS, this represents a change of -72.2%. Staar Surgical currently boasts a Zacks Rank of #3 (Hold).

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West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report

STAAR Surgical Company (STAA) : Free Stock Analysis Report

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Zacks Investment Research