West Pharmaceutical Services, Inc. (WST)

WST stock forecast: buy or sell

WST stock outlook

  • West Pharmaceutical Services barely moved a -0.12% after making all-time highs on Monday
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The viewpoints given in this article are personal and not recommendations for you to buy or sell stocks. The author of this paper does not have an understanding of the individual situations of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for education motives only

WST stock chart overview

Should I buy West Pharmaceutical Services stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is WST stock a buy?

In the current situation of West Pharmaceutical Services there is not any eligible buy setup. This doesn't mean we expect a selloff for WST in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell West Pharmaceutical Services stock?

Knowing when to sell a stock is even harder than knowing when to buy it. As when we have to buy shares, choosing when is appropiate to sell is not a whimsy decision, and we must use our own trading strategy. When selling, as well as buying, our setups are very easy to use but are only applicable for selling shares in your porfolio, not for selling short West Pharmaceutical Services stock

A guiding principle is that you must never mantain a trade that shows a higher than expected losses at the time of purchase. The timing to sell your stock must always be dictated by the stop-loss (automatic or manual)

Is it time to sell West Pharmaceutical Services stock?

Currently, West Pharmaceutical Services stock doesn't match any of our preferred sell setups, so if you own West Pharmaceutical Services shares and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell West Pharmaceutical Services stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating posted in the last 30 days for West Pharmaceutical Services

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Technical analysis

WST at Highs

West Pharmaceutical Services reached new all-time highs (ATH) on Monday at $279.54, and cleared the field for new highs as there are no further resistances. Previous highs were on July 23

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Technical analysts use support and resistance levels as a way to identify price points on a chart that tend to behave as obstacles, preventing the price of an asset to move in certain direction. A support level is a level where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue falling until approaching another support level. On the contrary, resistance levels are where the price tends to find a curb as it rises. In the same manner, the price is more likely to "rebound" at this level, and if it finally breaks this level, it will rally more easily until it approaches the next resistance

Price is at highs and there are not upper resistances.

The current supports are:

  • S1: $221.83 (-18.91% below)
  • S2: $217.08 (-20.64% below)
  • S3: $197.60 (-27.76% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It comprises three bands that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price fluctuations to detect when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI moves from 0 to 100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in the late 1970s

    Relative Strength Indicator (RSI) crossed up the 70 level Friday, marking a value of 73.75. The fact that the Relative Strength Indicator value is above 70 does not imply a sell point, as stocks can be in the overbought zone for many, many weeks and may continue to rally

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    Earnings and financials

    West Pharmaceutical Services, Inc. (WST) published 2nd-quarter earnings of $1.25 per share, strongly surpassing the Wall St consensus estimate of $0.91 per share. This Q2 report means an earnings surprise of 37.36%. Revenue was $527.2 million compared to $490.6 million estimated by market consensus.

    Same quarter one year ago, reported EPS was $0.89, so recently posted EPS is an increase of 40.45%. Turnover went up a 12.24% on an annualized basis in the second-quarter, from $469.7M to $527.2M last quarter.

    WST releases quarterly earnings report next October. Estimated Earnings per Share for this quarter is $0.99. Financial reporting day has an additional risk for investors as the data posted can soar and sink the price with lower liquidity and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.

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