Improved Investor Confidence Boosted West Pharmaceutical Services (WST)

Conestoga Capital Advisors, an asset management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets continued their momentum that began in early April, reaching new all-time highs in the third quarter. Conestoga Smid Cap Composite underperformed the Russell 2500 Growth Index in the quarter and returned -1.1% net-of-fees vs +10.7% for the index. The narrow and “low quality” leadership in the stock market rally that began in April grew stronger in the third quarter. Please check the top 5 holdings of the fund for a better understanding of their best picks for 2025.

In its third-quarter 2025 investor letter, Conestoga Capital Advisors highlighted stocks such as West Pharmaceutical Services, Inc. (NYSE:WST). West Pharmaceutical Services, Inc. (NYSE:WST) designs, manufactures, and sells containment and delivery systems for injectable drugs and healthcare products. The one-month return of West Pharmaceutical Services, Inc. (NYSE:WST) was 6.18%, and its shares lost 5.31% of their value over the last 52 weeks. On October 17, 2025, West Pharmaceutical Services, Inc. (NYSE:WST) stock closed at $270.60 per share, with a market capitalization of $19.458 billion.

Conestoga Capital Advisors stated the following regarding West Pharmaceutical Services, Inc. (NYSE:WST) in its third quarter 2025 investor letter:

“West Pharmaceutical Services, Inc. (NYSE:WST) develops and manufactures specialized packaging, components, and drug delivery systems for injectable pharmaceuticals, biotechnology products, and healthcare applications globally. More normalized demand for biologics and injectable therapies drove strong growth in high-value packaging and delivery components. Expanding adoption of specialized containment systems supported margin expansion, while innovation in biologic drug delivery created new revenue opportunities. Investor confidence improved with consistent cash generation and a strong balance sheet enabling reinvestment and shareholder returns.”

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West Pharmaceutical Services, Inc. (NYSE:WST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held West Pharmaceutical Services, Inc. (NYSE:WST) at the end of the second quarter, which was 40 in the previous quarter. While we acknowledge the risk and potential of West Pharmaceutical Services, Inc. (NYSE:WST) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than West Pharmaceutical Services, Inc. (NYSE:WST) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered West Pharmaceutical Services, Inc. (NYSE:WST) and shared Brown Advisory Large-Cap Growth Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.