Should You Be Optimistic on West Pharmaceutical (WST)?

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Brown Advisory Large-Cap Growth strategy has shown resilience this year amid heightened volatility, protecting investor capital during market declines and participating in the strong rebound since early April. The strategy returned 16% during the second quarter, slightly underperforming the benchmark, the Russell 1000® Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy 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 5.52%, and its shares lost 17.15% of their value over the last 52 weeks. On September 08, 2025, West Pharmaceutical Services, Inc. (NYSE:WST) stock closed at $253.15 per share, with a market capitalization of $18.203 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding West Pharmaceutical Services, Inc. (NYSE:WST) in its second quarter 2025 investor letter:

"West Pharmaceutical Services, Inc. (NYSE:WST), a medical supplies company specializing in elastomer-based solutions, has underperformed this year. The company’s 2025 guidance fell short of expectations in the first quarter, impacting revenue and earnings outlooks. Despite these temporary challenges, management remains optimistic about stabilization in the biologics market and the effects of inventory destocking. West Pharmaceutical is also exiting part of its contract manufacturing business tied to glucose monitoring due to unfavorable economics, with one relationship winding down and another ending in 2026. The anticipated financial impact is minimal, and replacements are already being targeted."

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 potential of West Pharmaceutical Services, Inc. (NYSE: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.

In another article, we covered West Pharmaceutical Services, Inc. (NYSE:WST) and shared the list of most oversold S&P 500 stocks so far in 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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.