There’s one pharma-linked stock most investors have never heard of. It’s on Josh Brown’s list
West Pharmaceutical Services (WST) supplies packaging for injectable drugs, benefiting from demand for biologics and GLP-1 drugs. Despite a 2025 earnings miss, WST has rebounded with Q2 sales growth of 13.8% and raised 2026 guidance. The stock is up 37% YTD, trading at 42x forward earnings. Analysts discuss technical levels and potential breakout.
How this was made
The 30-second read
Why it matters
The guidance lift and sizable buyback provide a fresh catalyst that could attract momentum traders, though valuation concerns remain.
Market read
Positive earnings guidance and buyback news may drive short‑term buying pressure in WST, with broader implications for pharma‑equipment suppliers.
What to watch
Recent inventory buildup from COVID‑era and compressed margins could limit upside.
Background
The article is a stock spotlight by CNBC Pro contributors, highlighting recent operational and financial improvements at West Pharmaceutical Services.
Ticker impact
West Pharmaceutical Services raised its 2025 guidance twice, announced a $1 billion buyback and reported Q2 sales up 13.8% with EPS beat, driving a 37% YTD price gain.
potential upside as market prices in improved earnings outlook and share repurchase.
Guidance now 21‑24% growth versus prior $6‑$6.20 range, plus a $1 bn buyback, creates strong bullish catalyst.
Market effects
Improved outlook for pharma packaging suppliers may lift related equipment stocks.
US biotech and pharma sectors could see modest support.
Limited to investors focused on specialty industrials and pharma supply chain.
Counterpoint
The stock remains expensive at ~42x earnings and may face margin pressure if GLP‑1 demand softens.
Key entities
- companyWest Pharmaceutical Services, Inc.
US‑listed supplier of injectable drug packaging.
