Conestoga Capital Advisors, an asset management company, released its “Mid-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 may be regarded as a time of moderation. Economic indicators largely reflected slowing growth and easing inflation. The moderation theme also drives equity markets. Large-cap stocks, as measured by the S&P 500, rose 3.9% in the second quarter, however, small-cap stocks lagged again, with the Russell 2000 Index declining -3.3% and the Russell 2000 Growth Index declining -2.9%. The Mid Cap Strategy declined -4.22% net-of-fees in the quarter compared to a -3.21% return for the Russell Mid Cap Growth Index. Sector allocation effects were slightly positive, while stock selection effects detracted from relative returns. Higher-quality companies benefited from stylistic factors, which helped to boost relative returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like West Pharmaceutical Services, Inc. (NYSE:WST), in the second quarter 2024 investor letter. 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 -5.54%, and its shares lost 23.50% of their value over the last 52 weeks. On August 16, 2024, West Pharmaceutical Services, Inc. (NYSE:WST) stock closed at $300.41 per share with a market capitalization of $21.792 billion.
Conestoga Capital Advisors stated the following regarding West Pharmaceutical Services, Inc. (NYSE:WST) in its Q2 2024 investor letter:
“West Pharmaceutical Services, Inc. (NYSE:WST): WST is a market leader in containment and delivery solutions for the pharmaceutical industry. WST reported better-than-expected first quarter results and reiterated guidance, however, the street is highly skeptical of the implied back-half acceleration in revenue growth. While WST claims to have above-average coverage of their guidance, many believe the weakness experienced in biopharma tools companies could be more prolonged. Longer term, WST still holds a dominant market position in a very attractive end market.”
A closeup of multiple drug containment systems in an array of colors.
West Pharmaceutical Services, Inc. (NYSE:WST) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held West Pharmaceutical Services, Inc. (NYSE:WST) at the end of the second quarter which was 46 in the previous quarter. West Pharmaceutical Services, Inc.’s (NYSE:WST) second-quarter results were below expectations due to ongoing consumer destocking. The company reported net sales of $702.1 million in the quarter, down 5.9% organically. 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 cheapest AI stock.
In another article, we discussed West Pharmaceutical Services, Inc. (NYSE:WST) and shared Artisan Mid Cap Fund’s views on the company. West Pharmaceutical Services, Inc. (NYSE:WST) was listed among the Conestoga Capital Advisors’ top contributors in its Q1 2024 investor letter. In addition, please check out our hedge fund investor letters Q2 2024 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.
