West Pharmaceutical Services (WST) is Returning to Sustainable Volume Growth

Conestoga Capital Advisors, an asset management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Conestoga Capital Advisors Mid Cap Strategy returned -5.75% net of fees compared to the Russell Midcap Growth Index’s -3.70% return. The underperformance was driven by negative stock selection in the Technology and Industrials sectors, while positive sector allocation effects partially eased underperformance. The Mid Cap Composite returned -4.73% net of fees for the full year 2025, trailing the benchmark return of 8.66%. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

 In its fourth-quarter 2025 investor letter, Conestoga Capital Advisors 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. On February 19, 2026, West Pharmaceutical Services, Inc. (NYSE:WST) stock closed at $243.83 per share. One-month return of West Pharmaceutical Services, Inc. (NYSE:WST) was 3.03%, and its shares gained 15.61% over the past 52 weeks. West Pharmaceutical Services, Inc. (NYSE:WST) has a market capitalization of $17.566 billion.

Conestoga Capital Advisors stated the following regarding West Pharmaceutical Services, Inc. (NYSE:WST) in its fourth quarter 2025 investor letter:

"West Pharmaceutical Services, Inc. (NYSE:WST) manufactures packaging components and delivery systems for injectable drugs and healthcare products. The company’s strong performance was driven by continued momentum in its High-Value Products segment, particularly for GLP-1 obesity and diabetes therapies. Management indicated that previous destocking headwinds have moderated, paving the way for a return to sustainable volume growth. We believe WST remains a critical partner to the pharmaceutical industry, well positioned to benefit from the long-term secular trends toward biologic and injectable medicines."

West Pharmaceutical Services, Inc. (NYSE:WST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 49 hedge fund portfolios held West Pharmaceutical Services, Inc. (NYSE:WST) at the end of the third quarter, up from 46 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 Upslope Capital Management's views on the company. In addition, please check out our hedge fund investor letters Q4 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.