NEW YORK ( TheStreet) -- Watson Pharmaceuticals ( WPI) was the best-performing stock in the S&P 500 Thursday morning. The S&P was down 9.68 points, or 0.68%, to 1,393.21 early Thursday.
Shares of Watson rose 4.99% to $66.87. The company is reportedly in talks to acquire Swiss generic drug manufacturer Actavis. Watson was also wasthe top performer in the S&P 500 on Wednesday; it gained 8.82% that day. Watson has an estimated price-to-earnings ratio of 10.84 times; the average for pharmaceutical companies is 31.84. For comparison, Mylan ( MYL) has a lower forward P/E of 10.84; Perrigo's ( PRGO) forward P/E is 18.78. Eighteen of the 25 analysts who cover Watson rated it buy; seven analysts gave the stock a hold rating. TheStreet Ratings gives Watson a B+ grade with a buy rating and a $76.90 price target. The stock has risen 10.67% year to date. -- Written by Alexandra Zendrian >To contact the writer of this article, click here: Alexandra Zendrian >To submit a news tip, send an email to: firstname.lastname@example.org. >To follow the writer on Twitter, go to Alexandra Zendrian.