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West Pharmaceutical Services (WST) Fell on Lowered Guidance

West Pharmaceutical Services (WST) Fell on Lowered Guidance

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Parnassus Investments, an investment management company, released the 'Parnassus Mid Cap Growth Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Growth Index fell 7.12% in the first quarter, starting with a continuation of the late 2024 rally but later experiencing a sharp decline. The Fund (Investor Shares) fell -9.98% (net of fees) in the quarter, compared to the Russell Midcap Growth Index's -7.12% fall. Stock selection in Consumer Discretionary and Industrials contributed to the relative performance, while Communication Services and Health Care detracted. In addition, please check the fund's top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund 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 4.63%, and its shares lost 31.06% of their value over the last 52 weeks. On July 2, 2025, West Pharmaceutical Services, Inc. (NYSE:WST) stock closed at $221.22 per share with a market capitalization of $15.894 billion.
Parnassus Mid Cap Growth Fund stated the following regarding West Pharmaceutical Services, Inc. (NYSE:WST) in its Q1 2025 investor letter:
"West Pharmaceutical Services, Inc. (NYSE:WST), a leader in packaging for injectable therapies, declined after lowering guidance due to ongoing customer destocking. While the core injectable components business remains strong, the surprise exit by two major customers in their contract manufacturing business added uncertainty."
A closeup of multiple drug containment systems in an array of colors.
West Pharmaceutical Services, Inc. (NYSE:WST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held West Pharmaceutical Services, Inc. (NYSE:WST) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the potential of West Pharmaceutical Services, Inc. (NYSE:WST) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.
In another article, we covered West Pharmaceutical Services, Inc. (NYSE:WST) and shared Baron Asset Fund's views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of WST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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