Exton, Pennsylvania-based West Pharmaceutical Services, Inc. (WST) designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products. With a market cap of $23.9 billion, West Pharmaceutical’s operations span the Americas, Europe, the Middle East, Africa, and the Indo-Pacific.

Companies worth $10 billion or more are generally described as "large-cap stocks," West Pharmaceutical fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical instruments & supplies industry.

West Pharmaceutical Services has faced a sharp downturn, sliding 43.3% from its 52-week high of $400.88, recorded on March 21 last year. The stock has plummeted 31.4% over the past three months, compared to the broader S&P 500 Index ($SPX), which declined 4.5% during the same period.

The stock’s longer-term performance remains weak, with losses of 26.2% over six months and 47.3% over the past year, significantly trailing SPX’s marginal gains in the last six months and 8.4% return over the past year.

To confirm the bearish trend, WST has traded below its 200-day and 50-day moving average since early February.

On February 13, West Pharmaceutical shares plummeted 38.2% after reporting Q4 2024 earnings despite surpassing revenue and profit expectations. The sharp decline was driven by disappointing full-year guidance, with the company forecasting 2%-3% organic growth for FY25, well below market expectations. Ongoing challenges, including foreign exchange headwinds, further weighed on investor sentiment.

Operating in a highly competitive industry, West Pharmaceutical faces challenges from peer ResMed Inc. (RMD), which has reported 9.4% gains on a six-month basis and 14.9% returns over the past year.

Nevertheless, the stock has a consensus “Strong Buy” rating among the 11 analysts covering it. The mean price target of $294 represents a 29.2% premium to current price levels.