What Makes West Pharmaceutical Services (WST) a Prospective Investment?

Upslope Capital Management, an investment management company, released its third-quarter investor letter. A copy of the letter can be downloaded here. The third quarter was a strong one for the fund despite unusual volatility in the macro environment. The fund returned +8.8% (net) in Q3 compared to +5.5% and +3.8% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-quarter 2025 investor letter, Upslope Capital Management 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 20.58%, and its shares lost 7.20% of their value over the last 52 weeks. On October 22, 2025, West Pharmaceutical Services, Inc. (NYSE:WST) stock closed at $277.00 per share, with a market capitalization of $22.085 billion.

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

“West Pharmaceutical Services, Inc. (NYSE:WST) – leading producer of packaging and components for injectable drug delivery devices (e.g. seals, elastomer stoppers, syringe components). Close readers of Upslope’s letters over the years will recognize the West name as the larger, more dominant competitor of Aptar’s (former long) Pharma segment. In addition to tailwinds from growing GLP-1 usage (rapidly growing, but a small minority of sales), West should benefit from continued advancements in drug development and a push to reshore drug manufacturing. While WST has historically (and still does) traded at a premium, shares de-rated to a more reasonable valuation in recent years (~23x 2026 EBITDA). Although not “cheap,” valuation seems reasonable enough given WST’s solid, consistent growth, deep regulatory driven competitive advantages, and the prospect of accelerated growth in the years ahead.”

West Pharmaceutical Services, Inc. (WST): One of the Low Profile Dividend Champions to Buy

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 Conestoga Capital Advisors’ views on the company. 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.